The legal battle between the Graduate Institute of Financial Sciences (GIFS) and the state has exploded after former Minister of Higher Education, Nobuhle Nkabane, vehemently rejected claims that she agreed to a colossal R200 million settlement from the Insurance Sector Education and Training Authority (INSETA).
Nkabane did not mince words when responding to inquiries, asserting she had never seen or been aware of any documentation regarding the massive alleged pay-out during her time in office. She quickly distanced herself from the issue, instructing the media to direct all future inquiries to the current executive authority, Minister Bhuti Manamela.
“Advanced Negotiations” vs. “I Saw Nothing”
The denial sets up a direct confrontation with GIFS. Selina Maharaj, the institute’s risk and compliance manager, contradicted Nkabane’s statement, maintaining that discussions with the former Minister had reached “advanced stages” before her departure.
The controversy stems from GIFS’s demand for over R200 million in damages after INSETA revoked its accreditation in 2022. GIFS claims the negotiations with Nkabane were nearing conclusion until Minister Manamela allegedly slammed the brakes on the process, refusing to sign the proposed agreement.
The Core Conflict: Fraud Allegations
INSETA, however, has stood firm, rejecting the damages claim and suggesting the heart of the legal fight is actually INSETA’s de-accreditation action, which was linked to findings of “fraudulent” conduct against the institute.
Despite a year and a half of legal maneuvering, INSETA has not reinstated the GIFS’s accreditation. Meanwhile, GIFS’s attempts to force a resolution through the courts have hit repeated roadblocks. While Judge Yacoob initially granted a temporary interdict, INSETA appealed, keeping the de-accreditation in effect. Crucially, multiple acting judges have since ruled against GIFS in urgent applications, declaring the institute’s claims to lack merit, further compounding the scandal.
