University Overcharge Recovery

SIU uncovers millions in student accommodation overpayments at Fort Hare. Image: AIG

Yasmin Bilal

An investigation into student accommodation payments at the University of Fort Hare has uncovered millions of rand in overcharges.

The Special Investigating Unit (SIU) says three service providers were paid more than the amounts set out in their lease agreements.

Two providers have signed acknowledgements of debt, while a third has repaid the full amount it was found to have been overpaid.

Younus Atcha, trading as Equicent Eastern Cape Developments (Pty) Ltd, was found to have been overpaid R302,814.50.

Tshongwane Trust was overpaid R2,928,163.84.

A third provider, Lynton and Harmony, did not sign an acknowledgement of debt. It instead requested the SIU’s banking details and paid R103,829.96 directly into the unit’s account.

Equicent Eastern Cape Developments and Lynton and Harmony have already paid their full amounts. The payments were made last year.

Tshongwane Trust has repaid R1.62 million. It still owes R1,665,290.41, including interest.

The SIU’s investigation found that the university had contracted several service providers to lease accommodation for students.

A review of financial records and lease agreements found instances where providers were paid more than the amounts agreed in their contracts.

The SIU shared its findings with the service providers and issued letters of demand.

The investigation has also led to nine disciplinary referrals involving current and former university officials linked to student accommodation leasing.

The SIU has been investigating certain affairs at the University of Fort Hare since 2013. The investigation is being conducted under Proclamation R84 of 2022, as amended by Proclamation R194 of 2024.

Its work at the university also covers procurement and contracting processes for goods and services.

The investigation includes alleged maladministration in the Faculty of Management and Commerce.

It is also examining serious misconduct in the Faculty of Law, including the improper registration and admission of ineligible students.

The SIU can institute civil proceedings in the High Court or a Special Tribunal to address wrongdoing uncovered during its investigations. It can also seek to recover financial losses suffered by the state.

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