The Independent Institute of Education (IIE), South Africa’s leading private higher education operator, narrowly avoided a potential shutdown following a protracted dispute with the Department of Higher Education and Training over the use of its trade names.
The conflict escalated after the department set a 31 December 2024 deadline for the IIE to remove references to its well-known brands—Varsity College, Vega, Rosebank College, and IIEMSA (formerly Monash South Africa)—from its campuses, citing regulations that only allow a single trade name for registered private institutions.
In response, the IIE approached the Gauteng High Court in Pretoria with an urgent application to suspend the directive pending a review. The IIE argued that compliance would cost over R50 million and take at least 18 months. Failure to meet the deadline, it said, could lead to its deregistration, impacting more than 50,000 enrolled students.
The court ultimately granted temporary relief when the department and IIE reached an agreement, which was formalized into a court order. The department, despite opposing the case initially, agreed to suspend its decision pending further legal proceedings.
Core of the Dispute
The department maintains that under the Regulations for the Registration of Private Higher Institutions, a private institution is permitted only a single trade name. Officials cite regulations stating “a trade name, not trade names.”
The IIE, however, argues this interpretation is flawed and conflicts with the Interpretation Act, which allows singular terms to include the plural unless explicitly stated otherwise.
The IIE’s director, Shevon Lurie, highlighted the significance of its brand structure, explaining that each of its campuses offers “distinct educational offerings associated with particular brands”, including:
- Geographic alignment
- Differentiated fee structures
- Unique combinations of programs
Lurie emphasized that eliminating these brand names would create significant confusion among students, parents, and professional bodies, while also damaging the institutions’ strong national and international reputations.
She further noted that the IIE’s centralized structure ensures cost efficiency and enables funding opportunities for students from low-income backgrounds. Complying with the directive, she said, would cost approximately R2.2 million per campus, or R50.6 million in total, with students likely to bear the burden.
Department’s Stand
The department’s director-general, Dr. Nkosinathi Sishi, accused the IIE of disregarding regulations and continuing to use its brand names unlawfully since 2010. He emphasized that the directive was lawful and necessary to bring the IIE into compliance.
Next Steps
While the immediate risk has been averted, the future of the IIE’s brands remains uncertain. The court has instructed both parties to expedite the review process, the outcome of which will determine whether the IIE can retain its multi-brand model or will be forced to phase it out.
The case has broad implications for South Africa’s private education landscape and the balance between institutional compliance and operational flexibility.
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