UJ Official Ordered to Repay R18 Million for Student Housing Corruption

In a landmark ruling, the Johannesburg Labour Court has mandated Andries Helani, a former senior director of student affairs at the University of Johannesburg (UJ), to return over R18 million to the institution following his involvement in fraudulent contracts related to private student accommodation. This case marks a significant moment in the legal landscape, as it is believed to be the first instance where an employee has been held accountable for fraud under the Basic Conditions of Employment Act.

Helani, who served as the head of student affairs from January 2017 until his dismissal in March 2024, was responsible for overseeing the accreditation of privately owned student residences funded by the National Student Financial Aid Scheme (NSFAS). Despite being required to disclose any potential conflicts of interest annually, Helani allegedly failed to declare any such conflicts throughout his tenure.

The court's ruling, delivered by Judge Reynaud Daniels, revealed that Helani had deviated from standard accreditation procedures in 2021. Instead of allowing the student affairs department to handle the accreditation, he subjected private property owners to a tender process while maintaining control. This led to the accreditation of two properties in Braamfontein, which were later found to be grossly under-equipped compared to what had been promised.

In November 2021, Mahlatse Investments applied for accreditation for the Jorissen Street and Bertha Street properties, with claims of providing 1,441 beds. However, investigations revealed that the Jorissen property only had 125 beds and the Bertha property contained just 174 beds. UJ students had protested the lack of adequate accommodation, prompting an initial investigation that ultimately led to a more thorough inquiry by ENS Attorneys.

Investigators discovered that Helani had received over R3.2 million through numerous payments from Mahlatsi Properties and other accommodation providers. These payments included direct transfers to his personal bank account, payments for his son's school fees, and other dubious transactions. Despite this, Helani maintained throughout the court proceedings that these payments were not kickbacks or bribes, claiming they were personal loans from a friend.

However, Judge Daniels dismissed Helani's defense, stating that his explanations were implausible and undermined his credibility. The judge highlighted that Helani had significant insight into the business dealings of his friend, Siphiwe Khoza, who was linked to Mahlatse Investments and had a financial interest in the fraudulent scheme.

In a broader context, the ruling underscores a troubling pattern of corruption within the university's dealings with private accommodation providers, as many students and employees were allegedly involved in this coordinated scheme to defraud UJ. The total amount paid to the non-compliant properties was over R18 million, including fees claimed by the payment merchant, Fundi Capital.

As a result of this ruling, Helani has been ordered to repay the full amount to the university along with additional legal costs, marking a pivotal step in holding individuals accountable for corruption within educational institutions.

Source: www.dailymaverick.co.za