The Gauteng Department of Education has confirmed it was being sued by Jackey Maarohanye, director of Ithuteng Development Trust.
Maarohanye is demanding R750000 from the department for comments in a Johannesburg newspaper to the effect that the trust was only registered as a school in 2005 and that not all her pupils sat for examination in the same year.
She is denying this.
Departmental spokesman Panyaza Lesufi confirmed being served with lawsuit papers by Maarohanye's lawyers.
"The department has received papers from her lawyers and our lawyers are dealing with the matter at the moment," said Lesufi.
He said they had not done anything about the papers because they were still waiting to hear from the lawyers on what to do.
Lesufi said the department wrote a letter to Maarohanye asking for a meeting with her after the trust was shown on Carte Blanche, a programme on M-Net last year.
The programme alleged that Maarohanye, also called Mama Jackey, made her students lie about their poor backgrounds to access funding.
Dubbed the "Angel of Soweto", Maarohanye is also facing charges of public violence, assault and kidnapping.
Lesufi said Maarohanye wrote two letters to the department demanding an apology .
"We haven't replied to those letters because they are letters of demand. Some of the issues she raised cannot be dealt with overnight," he said.