- UJ wins an R18.2 million damages claim against former senior director Andries Helani
- Judge RN Daniels finds Helani concealed payments from accommodation operators while leading the accreditation process.
- Two residences were approved for 1,441 beds despite having capacity for only 299.
The University of Johannesburg’s former Student Affairs director secretly took payments from private student accommodation operators while overseeing the accreditation process that led to more than R17 million being paid to two Braamfontein residences, the Labour Court in Johannesburg has found.
Judge RN Daniels ruled that Andries Helani broke his employment contract by fraudulently helping two non-compliant properties get accreditation, even though there were obvious irregularities. The court ordered him to pay the university R18,184,863.62 in damages.
False accreditation opened the door
Helani served as UJ’s Senior Director of Student Affairs and led the project to accredit privately owned student accommodation. His contract required him to declare any conflicts of interest, reveal financial relationships and always act in the university’s best interests.
Mahlatse Investments applied to accredit two Braamfontein properties at 35 Jorissen Street and 34 Bertha Street, claiming they could house 748 and 693 students. Helani presented the final report recommending both for approval, and the Tender Committee gave accreditation for a total of 1,441 beds.
But when forensic investigators checked months later, they found only 125 beds at Jorissen Street and 174 at Bertha Street. Their investigation also found incomplete applications, missing lease agreements and irregular inspection records that should have stopped the accreditation process.
Secret payments concealed from UJ
The court found that it was clear Helani received many payments from Siphiwe Khoza, Mahlatse Investments, Mahlatsi Properties and related service providers while he was overseeing the accreditation process.
These included R30,000 deposited on 3 March 2022, R29,000 paid towards his son’s school fees, R9,000 paid later that year and hundreds of other transfers, eventually totalling R3,238,896.06.
Even after receiving these payments, Helani never declared any conflict of interest after 2020 and did not disclose his financial relationship with Khoza or the businesses seeking accreditation.
Forensic accountant Jaco Spies told the court that payments to Helani often came just days after Fundi paid the accredited accommodation providers, showing a clear pattern between the transactions.
Judge RN Daniels rejects Helani’s version
Helani denied getting kickbacks and said the payments were for loans and the sale of a property in Marloth Park. Judge Daniels dismissed that explanation, calling it “improbable and unsupported by documents or corroborating witnesses.”
The judge said, “The timing and pattern of payments, together with his failure to disclose them, the false bed counts, deficient applications and payments to other employees and students, support the natural inference that he knowingly participated in a coordinated fraudulent scheme.”
Judge Daniels found the Tender Committee relied on Helani’s report throughout the process, adding, “If he had disclosed the payments to him or his association with Mr Khoza, the Tender Committee would not have accredited the two properties.”
UJ proves its full loss
The university brought its claim under section 77(3) of the Basic Conditions of Employment Act to recover the money paid for the two fraudulently accredited properties, plus the 6 percent Fundi administration fee.
Judge Daniels concluded, “The full R18,184,863.62 therefore constituted recoverable patrimonial loss and flowed naturally from the fraudulent breach.”
Helani was ordered to pay UJ R18,184,863.62 in damages, plus the university’s trial costs, including the costs of his unsuccessful attempts to amend his pleadings and postpone the proceedings.
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