The Special Investigating Unit (SIU) secured recognition of a debt exceeding 3.3 million rand from companies involved in the investigation into alleged overcharging for student housing at Fort-Heer University.
According to SIU representative Selby Macgatho, these debt recognitions arose from findings that service providers were charging the university excessive amounts for student accommodation.
Companies admitted to inflating tariffs
The SIU reported that Equicent Eastern Cape Developments, owned by Yunus Atcha, and Tshongwane Trust signed debt recognition documents after they inflated the university's invoices by more than 302,000 rand and 2.9 million rand, respectively.
Macgatho specified that Tshongwane Trust has already repaid 1.6 million rand, leaving an outstanding balance of over 1.66 million rand. Another service provider, Lynton and Harmony, did not sign a debt recognition but fully settled its debt of over 103,000 rand through a direct transfer to the SIU account.
Irregularities found in procurement
During the investigation, the SIU discovered irregularities in procurement and payment processes that exceeded the amounts stipulated in the lease agreements. These payments allegedly violated both the university's internal procurement policy and applicable legal requirements.
Macgatho also revealed that one accommodation contract, initially valued at 8.7 million rand, was increased by 68.67 million rand. This matter has been referred to a Special Tribunal for contract review and recovery of alleged excess payments.
These recent recoveries are part of a broader SIU investigation into student housing procurement at Fort-Heer University, aimed at recovering public funds lost due to improper expenditures and holding those responsible accountable.