The Special Investigating Unit (SIU) has secured Acknowledgements of Debt from companies found to have overcharged the University of Fort Hare for student accommodation leases.
This emanating from an investigation by the corruption busting unit into accommodation charges at the Eastern Cape based university.
“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, [the] SIU established instances in which certain service providers were paid amounts exceeding those specified in the lease contracts.
“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 [University of Fort Hare] involving former and current officials linked to the leasing of student accommodation,” the SIU said in a statement on Tuesday.
Service providers implicated in the overcharging were “contacted, and findings were shared along with letters of demand”.
“Two service providers, Younus Atcha trading as Equicent Eastern Cape Developments (Pty) Ltd and Tshongwane Trust, signed the AoDs [Acknowledgement of Debts] 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, 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 statement read.
The SIU is authorised to investigate the affairs of the university under Proclamation R84 of 2022, as amended by Proclamation R194 of 2024.
“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.
“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 statement concluded. – SAnews.gov.za
