Minister faces having to pay out millions in damages claim over bungled Inseta legal battle

THE Department of Higher Education finds itself on the verge of a hefty financial blow, potentially amounting to R200 million in damages, following Minister Buti Manamela's controversial decision to refuse a settlement negotiated by his predecessor, Nobuhle Nkabane.

- SIPHO JACK

This settlement concerns a legal battle involving the Graduate Institute of Financial Sciences (GIFS), the Insurance Sector Education and Training Authority (Inseta), and the department.

At the heart of this unfolding situation were the series of allegations regarding maladministration within the Inseta.

The GIFS has continuously raised concerns over extreme delays in the certification of qualified learners, alongside allegations of 'ghost learners' fraudulently receiving certifications.

Despite the seriousness the issues, the Inseta management dismissed the complaints and instead launched an investigation against the GIFS.

In 2022, the Inseta withdrew the accreditation of the GIFS, which ignited a fierce legal confrontation.

The former education minister, Nkabane, reached an agreement to offer the GIFS half of the amount they had initially claimed, which was R200m; however, a signature to finalise the settlement was never affixed before her departure from the position.

Sources indicated that Manamela's refusal to adopt the settlement strategy drove GIFS back to court.

The legal conflict began in September 2022, when the GIFS lodged a 149-page application with the Johannesburg High Court against the Inseta.