EASTERN CAPE – The Special Investigating Unit has recovered more than R3.3 million from service providers that overcharged the University of Fort Hare for student accommodation.
The corruption-busting unit secured acknowledgements of debt and direct payments from three companies found to have received amounts exceeding those specified in their lease contracts with the Eastern Cape university.
Tshongwane Trust signed an acknowledgement of debt for almost R3 million after overcharging the institution. The company has repaid R1 620 000 to date, with an outstanding balance of R1 665 290.41 including interest.
Equicent Eastern Cape Developments, owned by Younus Atcha, signed an acknowledgement of debt for R302 814.50 and has settled the full amount.
Lynton and Harmony refused to sign an acknowledgement of debt but paid the full amount of R103 829.96 directly into the SIU bank account.
Both Equicent Eastern Cape Developments and Lynton and Harmony settled their debts in full last year.
The SIU investigation revealed that the university engaged various service providers to lease student accommodation. Analysis of financial documents and lease contracts established instances where certain service providers received payments exceeding contracted amounts.
The unit has referred nine disciplinary cases at the university involving former and current officials linked to the leasing of student accommodation.
“The recovery of funds underscores the SIU’s commitment to protecting the public purse and ensuring accountability,” the unit said in a statement on Tuesday.
The SIU has also referred one accommodation contract to the Special Tribunal for review. The contract’s value increased from an initial R8.7 million to R75.37 million, an increase of R68.67 million. The unit is seeking to set aside the contract and recover excessive payments.
The SIU is authorised to investigate the university’s affairs under Proclamation R84 of 2022, as amended by Proclamation R194 of 2024. The amended proclamation extends the investigation to cover a two-decade period from January 2004 to October 2024.
The investigation focuses on procurement and contracting processes for goods and services, maladministration within the Faculty of Management and Commerce, and serious misconduct within the Faculty of Law regarding improper registration and admission of ineligible students.
The SIU is authorised to initiate civil proceedings in the High Court or a tribunal to correct wrongdoing uncovered during its investigation and recover financial losses suffered by the state.
