NSFAS welcomes R18m Labour Court repayment order against UJ official
NSFAS R18m repayment order against UJ official has put the management of student accommodation and public funds under renewed scrutiny after the Labour Court ordered a former University of Johannesburg senior official to repay more than R18 million to the university.
The National Student Financial Aid Scheme (NSFAS) welcomed the judgment on Wednesday, 2 September 2026, and called on law enforcement authorities to act swiftly if criminal charges are warranted.
The case centres on the accreditation and management of privately owned student accommodation connected to students supported through NSFAS. The properties were accredited and leased through the University of Johannesburg (UJ), rather than directly through NSFAS.
NSFAS said the judgment should strengthen accountability and help protect public resources intended for students.
NSFAS welcomes Labour Court judgment
The NSFAS R18m repayment order against UJ official follows a Labour Court judgment involving former UJ senior director for student affairs Andries Helani.
According to court findings reported by News24, Helani was responsible for overseeing the accreditation of privately owned accommodation providers. He worked at UJ from January 2017 until his dismissal in March 2024.
The court found that Helani had received payments from accommodation providers and related parties and that his conduct was connected to the accreditation of two properties in Braamfontein.
NSFAS said it welcomed the judgment and urged law enforcement agencies to consider further action.
“Law enforcement should act swiftly to ensure that criminal charges follow,” NSFAS said in its statement.
The scheme said allegations involving fraud, corruption, abuse of public funds and the exploitation of NSFAS-funded students must be treated seriously.
University of Johannesburg accommodation case
The University of Johannesburg case centres on two student accommodation properties in Braamfontein.
The properties were on Jorissen Street and Bertha Street and were approved for a combined 1,441 beds.
However, an investigation subsequently found that the properties had significantly fewer beds than the numbers approved.
According to IOL, the Jorissen Street property was accredited for 748 beds but was found to have only 125. The Bertha Street property was accredited for 693 beds but had only 174 beds.
That meant the two properties had a combined capacity of 299 beds, rather than the 1,441 beds for which they had been approved.
The investigation also identified incomplete applications, missing compulsory documents and other compliance problems.
Accreditation process under scrutiny
The court case raised questions about how the accommodation accreditation process was handled.
News24 reported that Helani deviated from the usual accreditation process in 2021, with private property owners being subjected to a tender process. Subsequent investigations found that Helani continued to exercise significant influence over the process.
The university argued that it had suffered financial losses because the properties should not have been accredited.
The Labour Court ultimately found that Helani’s conduct was connected to the university’s loss and ordered him to pay more than R18 million in damages.
Labour Court orders R18 million repayment
The Labour Court judgment is significant because the case was pursued as a contractual damages matter rather than simply as an internal disciplinary issue.
According to legal analysis of the judgment, the court found that UJ could pursue damages arising from a breach of an employee’s contractual obligations. The court awarded the university more than R18 million in damages.
The final amount reported in connection with the accommodation arrangements is approximately R18.18 million.
IOL reported that Fundi, which facilitated payments between the university and accredited accommodation providers, paid about R17.09 million to Mahlatsi Properties and/or Mahlatse Investments between March and October 2022. Including Fundi’s fee, the total amount associated with the two properties reached approximately R18.18 million.
The court also ordered Helani to pay UJ’s legal costs.
The judgment therefore goes beyond the recovery of money. It demonstrates that universities can potentially pursue financial remedies against employees where misconduct causes demonstrable contractual and financial losses.
R18 million repayment linked to accommodation
The R18 million repayment is connected to accommodation that was supposed to benefit students.
The case has consequently raised broader concerns about the protection of funds allocated for student support and the processes universities use when dealing with private accommodation providers.
NSFAS emphasised that, based on the information available to it, the properties involved were accredited and leased through UJ rather than directly by the financial aid scheme.
This distinction is important because NSFAS said universities remain responsible for the accuracy, compliance and contractual arrangements associated with accommodation they manage or lease.
Where accommodation is owned, managed or leased by a university, payments are made to the institution after claims submitted by the university are received and verified, according to NSFAS.
NSFAS calls for accountability
NSFAS said the recovery of funds and accountability for proven wrongdoing are important to protecting public resources and the interests of students receiving financial assistance.
The scheme also warned universities and Technical and Vocational Education and Training colleges participating in its accommodation programme to comply with prescribed frameworks.
It called for institutions to avoid arrangements that could expose students to exploitation or public funds to fraud, corruption or financial loss.
The statement reflects growing scrutiny of the way billions of rands in public money are administered across South Africa’s higher education system.
Student accommodation remains a major concern
Student accommodation is an important part of the higher education experience, particularly for students who cannot afford private housing near universities.
For students receiving NSFAS support, access to suitable accommodation can determine whether they are able to attend lectures, study effectively and remain enrolled.
This makes compliance with accommodation requirements particularly important.
The case involving UJ demonstrates the potential consequences when accommodation arrangements do not match the standards or capacity claimed during accreditation.
According to court reporting, the two properties at the centre of the case were approved for 1,441 beds but were later found to have only 299 beds combined.
That discrepancy has raised questions about verification procedures and whether sufficient checks were conducted before public money was committed.
Alleged kickbacks and court findings
The case also involved allegations of kickbacks paid to the former UJ official.
News24 reported that the court found Helani had accepted more than R3.2 million in payments linked to private student accommodation providers.
GroundUp reported that the court found 366 payments totalling more than R3.2 million had been made to Helani from accommodation providers and related parties over a three-year period.
The court considered the payments, undisclosed relationships and Helani’s role in the accreditation process when assessing the university’s claim for damages.
The court ultimately found that his conduct was connected to the university’s financial loss.
The R18 million-plus award therefore relates to damages suffered by UJ, while the allegations and findings surrounding the payments could potentially form part of any future criminal investigation.
Criminal charges could follow
NSFAS has made it clear that it wants law enforcement authorities to consider criminal action.
However, the Labour Court judgment itself is a civil or employment-related judgment and does not automatically amount to a criminal conviction.
Any criminal prosecution would need to be pursued through the appropriate law enforcement and prosecutorial processes.
NSFAS said those responsible should be held accountable where wrongdoing is proven and that improperly obtained funds should be recovered.
The scheme’s position places additional pressure on authorities to determine whether the evidence presented in the Labour Court proceedings warrants criminal charges.
Protecting NSFAS-funded students
The controversy has also highlighted the importance of protecting NSFAS-funded students from being caught in financial and administrative disputes.
Students depend on the scheme and universities to ensure that accommodation arrangements are properly managed and that funding reaches legitimate services.
NSFAS said all universities and TVET colleges participating in its student accommodation programme should fully comply with the prescribed framework.
The scheme also warned against practices that could expose students to exploitation or public funds to fraud and corruption.
This means institutions are likely to face continued scrutiny over their accommodation processes, particularly where private landlords and large amounts of public money are involved.
What the UJ case means for higher education
The NSFAS R18m repayment order against UJ official could have implications beyond the University of Johannesburg.
Universities are entrusted with managing significant amounts of public money and administering services for students. Where private companies or accommodation providers are involved, transparent procurement, proper verification and conflict-of-interest controls become particularly important.
The case also highlights the potential financial consequences of failing to detect irregularities before payments are made.
For students, the priority remains ensuring that accommodation programmes provide safe and suitable housing.
As for universities, the judgment reinforces the importance of robust governance systems.
For NSFAS and government, it underlines the need for effective oversight of money intended to support students.
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Conclusion
The NSFAS R18m repayment order against UJ official has brought renewed attention to student accommodation, public funding and accountability within South Africa’s higher education sector.
The Labour Court ordered former University of Johannesburg senior director Andries Helani to pay more than R18 million to UJ after finding that his conduct was linked to financial losses involving two privately owned accommodation properties.
The properties had been approved for 1,441 beds but were subsequently found to have a combined capacity of only 299 beds.
The court also considered payments received by Helani from accommodation providers and related parties.
NSFAS has welcomed the judgment and called for law enforcement authorities to act swiftly if criminal charges are warranted.
The case serves as a reminder that public funds intended for students require strong oversight, transparent accreditation processes and effective accountability.
As NSFAS-funded accommodation continues to support students across South Africa, universities and participating institutions will face pressure to ensure that accommodation providers comply with prescribed requirements and that students receive the services for which public funds are allocated.
Mainstream media references
- IOL — NSFAS calls for criminal charges after former UJ director ordered to pay R18.18 million
Read the IOL report - IOL — Former UJ senior director ordered to repay R18.18 million over student housing scheme
Read the IOL report - News24 — UJ official must pay back R18m after taking student housing bribes
Read the News24 report - Sunday Times — How UJ official ran a student rental scam to loot NSFAS
Read the Sunday Times report
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