The Special Investigating Unit (SIU) has obtained Acknowledgments of Debt (AoDs) from two companies, with one company paying money into the SIU’s bank account in relation to an investigation concerning the University of Fort Hare (UFH) for overcharging the institution a combined R3,334,808.30 in the leasing of student accommodation.

Two service providers, Younus Atcha trading as Equicent Eastern Cape Developments (Pty) Ltd and Tshongwane Trust, signed the AoDs after overcharging the university R302,814.50 and R2,928,163.84, respectively.

However, the third service provider, Lynton and Harmony, refused to accept the letter of demand and did not sign the AoD. Instead, they requested the banking details, and Lynton and Harmony paid the full amount of R103,829.96 directly into the SIU bank account.

Tshongwane Trust, which overcharged the university by R2,928,163.84 and has already repaid R1,620,000. The current outstanding balance is R1,665,290.41, including interest.

In contrast, Equicent Eastern Cape Developments and Lynton and Harmony have already paid their full amounts last year.

The SIU investigation revealed that the university engaged various service providers to lease and accommodate students. Upon analysis of the financial documents and lease contracts, SIU established instances in which certain service providers were paid amounts exceeding those specified in the lease contracts.

The service providers were contacted, and findings were shared along with letters of demand.

The recovery of funds underscores the SIU’s commitment to protecting the public purse and ensuring accountability. The SIU has since referred nine disciplinary cases at the UFH involving former and current officials linked to the leasing of student accommodation.

The SIU has been investigating certain affairs of the UFH, including the leasing of student accommodation, since 2013, under Proclamation R84 of 2022, as amended by Proclamation R194 of 2024.

The SIU is authorised to initiate civil proceedings in the High Court or a Tribunal in its name to correct any wrongdoing uncovered during its investigation and to recover financial losses suffered by the State, including funds paid for services not rendered.

The SIU’s investigation at the UFH focuses on various issues, including the procurement and contracting processes for goods and services. It also examines maladministration within the Faculty of Management and Commerce and serious misconduct within the Faculty of Law, particularly regarding the improper registration and admission of ineligible students.

Enquiries:
Selby Makgotho
Spokesperson: Special Investigating Unit
Cell: 083 718 6128
SIUMedia@siu.org.za