Overcharged Fort Hare accommodation funds recovered by SIU

The Special Investigating Unit (SIU) has secured Acknowledgements of Debt (AoDs) from companies found to have overcharged the University of Fort Hare for student accommodation leases, following an investigation by the corruption-busting unit into accommodation charges at the Eastern Cape-based institution.

In a statement on Tuesday, the SIU said its investigation had revealed that the university engaged various service providers to lease and accommodate students, and that an analysis of financial documents and lease contracts had established instances in which certain providers were paid amounts exceeding those specified in their contracts.

The SIU said the recovery of funds underscored its commitment to protecting the public purse and ensuring accountability, adding that it had since referred nine disciplinary cases at the University of Fort Hare (UFH) involving former and current officials linked to the leasing of student accommodation.

Service providers implicated in the overcharging were contacted, with findings shared alongside letters of demand. Two of the providers, Younus Atcha trading as Equicent Eastern Cape Developments (Pty) Ltd and Tshongwane Trust, signed AoDs after overcharging the university by R302,814.50 and R2,928,163.84 respectively.

A third provider, Lynton and Harmony, refused to accept the letter of demand and did not sign an AoD. Instead, the SIU said, the company requested its banking details and paid the full amount of R103,829.96 directly into the SIU's bank account.

Tshongwane Trust, which overcharged the university by R2,928,163.84, has already repaid R1,620,000, leaving an outstanding balance of R1,665,290.41, including interest. Equicent Eastern Cape Developments and Lynton and Harmony have both already paid their full amounts, the SIU said, with those payments made last year.

The SIU is authorised to investigate the affairs of the university under Proclamation R84 of 2022, as amended by Proclamation R194 of 2024. According to the statement, the SIU's investigation at UFH extends beyond the accommodation leases to cover procurement and contracting processes for goods and services more broadly, as well as maladministration within the Faculty of Management and Commerce and serious misconduct within the Faculty of Law, particularly relating to the improper registration and admission of ineligible students.

The SIU said it is authorised to institute civil proceedings in the High Court or a tribunal in its own name to correct any wrongdoing uncovered during its investigations and to recover financial losses suffered by the state, including funds paid for services not rendered.