Dynamos took United to the DC after they allegedly registered Anele Sithole under the false name Realeboga Bolly Matlou during their League campaign last season.
The DC found United guilty, and fined the club R300 000, of which R200 000 is suspended on condition they are not found guilty of same offence in the next two years. The remaining R100 000 must be paid within 30 days.
The sentence means the relegated Dynamos, who were hoping to benefit from points docked from Bay, will continue to play in Vodacom League.
However, Malabela says justice has not been done.
"This is shocking," Malabela says. "This means teams can now use improperly registered players as long as they pay the fine at the end of the season.
"We are definitely taking the matter to Safa for an appeal."