The problem of the South African university, and society in the same breath, is not so much that of governance or politics but ideology. The deepening realisation of the farcicality and impossibility of strategies, attendant ideologies and "master signifiers" of transformation (such as diversity, multiculturalism and rainbow nation) of the South African society and (whatever remains of) its institutions has never been more acute than now, when the insistence at meaningful change and the unanimous rejection, mostly by blacks, of the university (at least in its current form) have gained traction. This paper draws on Žižek's Lacanian theory of ideology to provide a counter-narrative and reading of official transformation consensus and ideologies like diversity, by highlighting their ethical liminalities. The underside of diversity's official claims to equality and justice are unmasked, and the terror and ironies of this liberal ideology are exposed, especially its refusal to recognise that whiteness (as a system) and justice can never coexist or inhabit the same space. Transformation discourse, of our kind, fashioned under diversity's register can never escape being appropriated by liberal ideology and practice, as yet another means to reaffirm its priorities.