The Special Investigating Unit (SIU) has secured acknowledgements of debt from two service providers and recovered more than R3.3 million linked to the overcharging of the University of Fort Hare for student accommodation.

The SIU said its investigation found that three service providers had overcharged the university by a combined R3,334,808.30 in connection with the leasing of accommodation for students.

Younus Atcha, trading as Equicent Eastern Cape Developments (Pty) Ltd, and Tshongwane Trust signed acknowledgements of debt after the SIU established that they had received amounts exceeding those provided for in their respective lease agreements.

Equicent Eastern Cape Developments was found to have overcharged the university by R302,814.50, while Tshongwane Trust was found to have overcharged the institution by R2,928,163.84.

The third service provider, Lynton and Harmony, did not sign an acknowledgement of debt after refusing to accept the SIU’s letter of demand.

Instead, the company requested the SIU’s banking details and paid the full amount of R103,829.96 directly into the unit’s bank account.

The SIU said Equicent Eastern Cape Developments and Lynton and Harmony had already paid their respective amounts in full last year.

Tshongwane Trust has also started repaying the money. The service provider has repaid R1.62 million, while the current outstanding balance stands at R1,665,290.41, including interest.

The recoveries follow an investigation into the university’s leasing of student accommodation.

The SIU said the university had engaged various service providers to provide accommodation for students.

Investigators analysed financial documents and lease contracts and identified instances where service providers were paid amounts that exceeded the amounts stipulated in their lease agreements.

The service providers were subsequently contacted, and the SIU shared its findings with them before issuing letters of demand.

The acknowledgements of debt and payments form part of the SIU’s efforts to recover money lost by the university and ensure that public funds are protected.

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

The investigation has also resulted in the referral of nine disciplinary cases involving former and current University of Fort Hare officials.

The cases relate to the leasing of student accommodation and are part of the broader investigation into the university’s affairs.

The SIU has been investigating certain affairs of the University of Fort Hare since 2013 under Proclamation R84 of 2022, which was later amended by Proclamation R194 of 2024.

The investigation covers several areas of the university’s operations, including procurement and contracting processes for goods and services.

It also examines alleged maladministration within the Faculty of Management and Commerce and serious misconduct within the Faculty of Law.

The investigation into the Faculty of Law includes matters relating to the improper registration and admission of students who were allegedly ineligible.

The SIU has powers to take civil action where wrongdoing is uncovered during its investigations.

The unit is authorised to institute civil proceedings in the High Court or a tribunal in its own name to correct wrongdoing and recover financial losses suffered by the state.

This includes money paid for services that were not rendered.

The accommodation investigation forms part of the SIU’s broader mandate to investigate allegations of fraud, corruption and maladministration involving public institutions and to recover public funds where financial losses are established.

The latest recoveries bring the focus back to the management of student accommodation and procurement at the University of Fort Hare, while disciplinary processes involving nine current and former officials remain part of the broader investigation.

The SIU said its work was aimed at protecting public assets through investigations, recoveries and measures intended to prevent fraud, maladministration and corruption.