NSFAS urges criminal probes after ex-UJ director ordered to repay R18.18m

The National Student Financial Aid Scheme (NSFAS) has called for law enforcement action after a Labour Court ordered former University of Johannesburg (UJ) senior director Andries Helani to repay more than R18.18 million for his role in accrediting two non-compliant student accommodation properties.

NSFAS demands swift criminal action

NSFAS said it welcomed the judgment and urged authorities to act quickly so that criminal charges follow. The scheme emphasised the seriousness of the allegations, saying:

“Fraud, corruption, abuse of public funds and exploitation of NSFAS-funded students are treated with the utmost seriousness, and those responsible must be held to account where wrongdoing is proven, and recover any funds found to have been improperly obtained.”

NSFAS added that, based on information available to it, the properties were accredited and leased through UJ rather than directly by NSFAS. It described the responsibility as resting with the institution when accommodation is owned, managed or leased by a university, noting that payments are made to institutions upon receipt and verification of claims submitted by the university to NSFAS.

The scheme said management had been directed to continue engaging higher education institutions, caution against arrangements that circumvent accreditation processes and exercise extreme vigilance in managing state funds ring-fenced for students. It also called on universities and TVET colleges participating in the student accommodation programme to comply fully with the prescribed framework.

Labour Court findings on Helani and the accommodation scheme

Labour Court Judge Reynaud Neil Daniels found that Helani accepted bribes and made fraudulent misrepresentations to assist Mahlatse Investments in obtaining accreditation for two Braamfontein properties. UJ sued Helani for contractual damages of more than R18.18 million, and the court ordered him to pay the full amount plus the university’s legal costs.

The court heard that Mahlatse Investments applied for accreditation for two properties on Jorissen Street and Bertha Street with approved combined capacity of 1,441 beds 748 beds for Jorissen Street and 693 beds for Bertha Street. A later investigation found the Jorissen Street property had only 125 beds and the Bertha Street property had only 174 beds, a combined capacity of 299 beds. The investigation also found incomplete applications, missing compulsory documents and other compliance failures.

Payments and personal receipts

Fundi, which facilitated payments from the university to accredited providers, paid Mahlatsi Properties and/or Mahlatse Investments R17.09 million between March and October 2022. Excluding Fundi’s 6% fee of R1.09 million, the total amount paid by the university in relation to the two properties was R18.18 million. The university argued it received no value for the money because the properties were not compliant and should not have been accredited; the judge agreed the university’s loss was linked to Helani’s conduct.

The judgment records that Helani received 366 payments amounting to more than R3 million between March 2021 and March 2024. Among the payments were R30,000 deposited with the reference “Siphiwe K”, R29,000 paid towards his son’s school fees by Mahlatsi Properties, and a further R9,000 payment. A forensic accountant found Helani personally received R457,000 from Siphiwe Khoza and Mahlatse-related entities between March and November 2022.

The court noted a significant correlation between payments made by Fundi to the accommodation providers and payments received by Helani, with several payments to Helani occurring within days of Fundi paying the providers.

Court rejects Helani’s explanations and finds coordinated scheme

Helani told the court he had been involved in a property transaction with Khoza and had borrowed money from him, but the court found these explanations inadequate. He could not produce a deed of sale or proof of property transfer, nor proof that the alleged loan had been repaid. The court found he failed to disclose relationships and payments linked to accommodation providers.

Judge Daniels rejected Helani’s defence that he played only an administrative role, finding he was a senior manager, a member of the Bid Evaluation Committee and the project leader responsible for accreditation. The judge found Helani prepared the report submitted to the Tender Committee and that his representations to the committee about inspections and compliance were false.

The court also heard that inspection documents had been falsified. UJ security officer Mthetheleli Jafta said he had not inspected the two properties despite his name appearing on inspection documentation and that his signature had been forged. A forensic investigation found no students at Jorissen Street and only one UJ student at Bertha Street during a later inspection.

Judge Daniels concluded the combination of Helani’s role, his receipt of substantial payments, the involvement of other employees and students, and prior warnings about fraudulent activity pointed to a coordinated scheme to defraud the university. The court found Helani was a “willing and active participant” and that he knew his representations were false.

Damages and final order

The court found that, but for Helani’s breaches and fraudulent misrepresentations, UJ would not have accredited the two properties and would not have lost more than R18 million. The judge therefore ordered Helani to pay UJ more than R18.18 million in damages arising from his breach of contract and to pay the university’s trial costs, including costs related to his unsuccessful applications to amend pleadings and postpone the trial.