SIU recovers millions in Fort Hare accommodation probe

The Special Investigating Unit (SIU) has secured acknowledgments of debt linked to more than R3.3 million in alleged overcharging for student accommodation at the University of Fort Hare (UFH).

According to the SIU, its investigation found instances where service providers were paid amounts above those stipulated in their lease agreements with the university.

Two service providers signed acknowledgments of debt after the SIU identified alleged overpayments. Younus Atcha, trading as Equicent Eastern Cape Developments (Pty) Ltd, was linked to R302,814.50, while Tshongwane Trust was linked to R2,928,163.84.

A third service provider, Lynton and Harmony, did not sign an acknowledgment of debt but instead paid R103,829.96 directly into the SIU’s bank account.

The SIU said Equicent Eastern Cape Developments and Lynton and Harmony have already repaid their amounts in full.

Tshongwane Trust has so far repaid R1.62 million. According to the SIU, the outstanding balance, including interest, currently stands at R1,665,290.41.

The findings followed an analysis of financial documents and lease contracts relating to accommodation secured for university students.

“The recovery of funds underscores the SIU’s commitment to protecting the public purse and ensuring accountability,” the unit said.

The investigation has also resulted in nine disciplinary referrals involving former and current UFH officials linked to the leasing of student accommodation.

The SIU has been investigating certain affairs at the University of Fort Hare under Proclamation R84 of 2022, as amended by Proclamation R194 of 2024.

Its wider investigation includes procurement and contracting processes for goods and services, alleged maladministration within the Faculty of Management and Commerce, and alleged serious misconduct within the Faculty of Law relating to the registration and admission of ineligible students.

The SIU is empowered to institute civil proceedings to correct wrongdoing uncovered through its investigations and recover financial losses suffered by the State.