Dale College headmaster placed on precautionary suspension

Dale College headmaster Craig Hatches has been suspended after a string of allegations, including that cash from school fundraising events had been delivered to his home during a private party.

Eastern Cape education department spokesperson Malibongwe Mtima confirmed Hatches’ precautionary suspension on Wednesday.

The prestigious Qonce all-boys school’s governing body, or SGB, chair Morris Saba told IOL: “I can confirm that the headmaster has been placed on precautionary suspension.

“For any other details and comments, the education department is better placed to comment.”

The suspension followed a governance report submitted to the department by the SGB which raised several concerns about how the historic school, founded in 1861, had been run.

According to the report, seen by IOL, the school’s finances had come under pressure after savings meant to keep the school stable had repeatedly been used to pay staff salaries.

The report, compiled by ex-SGB chair Mpumelelo Madikane, said the school’s reserve funds had dropped to below about R4m after money had been used to keep the payroll running.

“The school and hostel are dependent on school fees and hostel fees,” the report said.

“This indicates the existence of material uncertainty due to the poor collection of these fees that may cast significant doubt on the school and hostel’s ability to continue as a going concern.

“Of particular concern is that the school had to utilise reserve funds to meet January 2025 payroll obligations.

“Standard financial practice recommends maintaining a reserve of approximately R4 million for emergencies, which was not the case at the time of payroll execution.

“There has been reliance on reserve funds to pay staff in January 2025, depleting savings that should ideally remain at R4m.”

The report also raised questions about how school money had been spent.

It claimed the school’s debit card had been used for purchases without proper receipts or documentation and sometimes outside normal procurement processes.

“The school’s debit card, intended for emergency purchases, is being used outside proper procurement channels, often without receipts or supporting documentation,” the report said.

“The use of the school debit card lacks documented accountability.

“Receipts for transactions are often missing, bypassing formal procurement procedures and weakening internal controls.

“The card is currently held by the Headmaster, without finance office oversight.”

According to the report, the concerns about cash being taken to the headmaster’s home related to money collected during school fundraising events run through the Parent-Teacher Association, commonly known as the PTA.

The PTA is a school body that raises money through events and fundraising activities to support school projects and activities.

The report did not specify the amount of money or the exact date of the incident but said the cash box from a fundraising event had allegedly been taken to the headmaster’s residence instead of being secured in the school safe.

“There have been different individuals who were asked, not authorised, to collect the cashbox to be dropped off at the headmaster’s house instead of the safe at school, this exposes school fundraising funds to risk and corruption,” the report found.

“There is no effective mechanism in place to control the PTA account purchases and monies collected from events.

“This creates room for unauthorised spending and bypasses the checks and balances that are critical to financial management.”

Other allegations included that some staff appointments and salary changes had been made without the approval of the governing body, including a R3,000 salary increase for an employee.

“Appointments and contract amendments for SGB-employed staff have occurred without SGB knowledge or approval, undermining governance oversight.

“Employee X’s salary was increased from R35,000 to R38,000 without SGB approval.

“This increase was discovered only during a closed meeting.

“Salary offers and employment terms for SGB-appointed staff have been changed after initial approval, without SGB consultation or revision of budgetary impact.”

The report also said the school bursar resigned after allegedly being pressured to process payments that had not been properly authorised.

“The bursar, placed in a professionally compromising position by instructions from the Headmaster, resigned after being directed to process unauthorised payments.

“The bursar was directed to process relocation payments in violation of SGB protocols.

“Her resignation reflects the severity of governance breakdowns, and the ethical pressure placed on staff operating under non-compliant leadership instructions.”

The conclusion of the report was that there was “a total breakdown in the trust relationship between the SGB and the headmaster”.

“The SGB’s confidence in the competences of the headmaster to manage the school in terms of the required standards is wholly eroded.”

In another incident not mentioned in the same report, R27,754.24 was allegedly spent at a bottle store in December using the school’s debit card.

IOL

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