NSFAS calls for criminal charges after former UJ director ordered to pay R18.18 million

NSFAS has welcomed a Labour Court ruling ordering former University of Johannesburg director Andries Helani to pay the university more than R18.18 million for his part in a student accommodation scheme.

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

The scheme welcomed the judgment and called for law enforcement authorities to act swiftly to ensure that criminal charges follow.

“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.”

The scheme said that, based on the information currently available to NSFAS, the properties referred to in the allegations were accredited and leased through UJ and not directly by NSFAS.

“Where accommodation is owned, managed or leased by a university, payments are directly made to the institution upon receipt and verification of claims submitted by the university to NSFAS, and the university remains responsible for the accuracy, compliance and contractual arrangements linked to such student accommodation.”

“NSFAS management has been directed to continue engaging institutions of higher learning and to caution against arrangements that circumvent prescribed accreditation and accommodation processes, and to exercise extreme vigilance in the management of State funds ring-fenced for students.”

The scheme said this further dispels the notion that funds ring-fenced for students can simply be handed over to institutions for both allocation and disbursement.

“All universities and Technical and Vocational Education and Training (TVET) colleges participating in the student accommodation programme are called upon to comply fully with the prescribed framework and to avoid practices that may expose NSFAS-funded students to exploitation or public funds to fraud, corruption or financial loss.”

Six days ago, IOL reported that Labour Court Judge Reynaud Neil Daniels found that Helani accepted bribes and made fraudulent misrepresentations to assist Mahlatse Investments in obtaining accreditation for two properties in Braamfontein.

UJ sued Helani for contractual damages of more than R18.18 million for money paid to accommodation providers whose properties should not have been accredited.

The court ultimately ordered Helani to pay the full amount, along with the university's legal costs, including costs related to his unsuccessful applications to amend his pleadings and postpone the trial.

Helani served as UJ's Senior Director for Student Affairs from January 2017 until his dismissal in March 2024.