How UJ official ran a student rental scam to loot NSFAS

A senior University of Johannesburg (UJ) manager has been identified as a central figure using bogus student accommodation leases and bribing 141 students in a scheme that resulted in an R18.1m loss for the National Student Financial Aid Scheme (NSFAS).

Andries Helani, who was employed by UJ as a senior director of student affairs from 2017 to March 2024, pocketed R3.2m made in 366 payments to approve and accredit student accommodation for two properties in Braamfontein owned by Mahlatsi Properties Management.

It is alleged Helani worked with associates from Mahlatsi to fleece the NSFAS to pay for 1,441 student beds at the two properties in Jorissen and Bertha streets.

However, investigations have revealed the properties were tiny and could only accommodate 299 beds. Investigations also revealed that no UJ students lived there despite the NSFAS paying rent to Mahlatsi monthly.

The scheme allegedly included the presentation of bogus leases signed by NSFAS-funded students who had been roped in. At least 141 students were allegedly used and paid R2.2m by Mahlatsi.

This is contained in a labour court judgment in which the UJ successfully sued Helani for R18,184,863 in damages, breach of contract, fraud and corruption.

Judge Reynaud Daniels found Helani was a “willing and active participant” in the scheme and had received kickbacks for his role.

The court found Helani used his senior position to help non-compliant accommodation providers secure accreditation while concealing his relationships and payments from the university.

At the heart of the scheme were two Braamfontein properties, with the one in Jorissen Street having only 125 beds, despite being accredited for 748, while Bertha Street had 174 beds instead of the 693 approved.

The court heard some students were also persuaded to sign bogus leases even though they never lived at the properties.

One former NSFAS-funded student, Ntombizodwa Hlatshwayo, told the court a man she knew as “Mr Chuck” — later identified as Siphiwe Khoza, an associate of Mahlatsi Properties — promised her a monthly travel allowance of R1,700 if she registered at a Mahlatsi residence.

Though she never lived there, she received R8,500 in June 2022 and R1,700 a month from July to October.

When payments stopped, she was asked to falsely tell the UJ she had been evicted.

She later confessed to the university, saying: “I’m not sure if this was illegal or corruption or not. If it was illegal, I repent, and I’m sorry for being a partaker.”

The court heard the bogus accommodation operation did not rely only on students.

It allegedly depended on people inside the university and accommodation businesses working together.

A security officer, Mthetheleli Jafta, testified he never inspected the two Braamfontein properties despite his name appearing on inspection documents.

Forensic investigator Christiaan Powrie later inspected the buildings and found dramatically fewer beds than had been reported to the UJ.

The investigation also uncovered payments to students and university employees.

It was the money flowing to Helani that raised the biggest questions.

Forensic accountant Jaco Spies found Helani received R457,000 between March and November 2022 from Khoza and entities linked to the accommodation scheme.

There was also a R29,000 payment made by Mahlatsi directly to Helani’s son’s school.

The judge found the timing of the payments particularly damning.

The money started flowing shortly after Mahlatsi was approved as an accredited merchant and stopped soon after payments to the company were halted.

“The most natural inference is that the payments constituted bribes,” Daniels said.

Helani gave investigators false explanations for the money, which the judge rejected.

During an investigation interview, he claimed he had bought a property from a man named Mugwena and later sold it to Khoza for R220,000.

However, he could not produce a deed of sale, sales agreement or proof the property had ever been transferred.

He also told investigators he had borrowed money from Khoza because he was having financial difficulties.

Helani said the money was needed for expenses, including lobola, his wedding and his child’s school fees.

Daniels described Helani’s explanations as “so far-fetched” that they damaged his credibility.

Daniels found Helani was the project leader, played a key role in the accreditation process and prepared the final report relied on by the tender committee.

“He was a willing and active participant in a scheme to defraud the university,” the judge found.

Daniels said the loss was directly linked to Helani’s conduct.

“Corruption is a malignant cancer that erodes our social and moral fabric. Like all cancer, it must be excised, not rewarded,” he said.