The University of the Free State (UFS) has fallen victim to a shocking R1.5-million accommodation scam after paying a company that falsely claimed to own student residences in Qwaqwa, Free State.
The accused, Motlatsi Nelson Khalane, allegedly convinced the university that he had 215 rooms available.
Believing his claims, the institution approved the application and made regular payments into his company’s business account over a period of two years, from January 2023 to December 2024.
University spokesperson Lacea Loader confirmed that a thorough internal investigation had been launched into the fraudulent scheme.
“The University of Free State has systems in place to ensure good governance regarding off-campus accommodation, which includes policies and standard operating procedures.
“Proactive assurance reviews are consistently conducted to ensure that governance controls remain robust and effective,” said Loader.
She further told Sunday World that the university’s internal audit division had already investigated the matter and was working to identify individuals who might have been involved in the scandal, a process that could lead to disciplinary steps.
However, Loader avoided questions about how the university eventually uncovered that the supposed accommodation buildings did not exist.
She also did not respond to queries about whether there were similar ongoing internal investigations regarding accommodation or about the verification processes used before approval of such facilities.
According to the Hawks, Khalane’s deceit was uncovered after detailed checks were conducted. He, was arrested by the Bethlehem-based Hawks’ Serious Commercial Crime Investigation unit on October 13, and appeared before the Phuthaditjhaba Magistrates’ Court the following day, where he was granted R5 000 bail.
Free State Hawks spokesperson Fezile Matoti explained that Khalane had applied to the UFS Qwaqwa campus through his company to provide student accommodation but did not own any legitimate building that could serve that purpose.
“During the verification process, the university discovered that the two stands provided in the application stood empty with no rooms built. As a result, UFS suffered a financial loss of more than R1.5-million.
“Khalane is expected to appear before the Bethlehem Commercial Crimes Court on 11 December 2025,” said Matoti.
The university has also been caught up in violent protests this week as students oppose the new registration policies.
The university implemented a new system stating that academically eligible students would only be allowed to register once their funding had been officially confirmed. However, students funded by the National Student Financial Aid Scheme would still be fully registered.
The decision sparked widespread protests, during which several buildings were attacked and some set on fire. Videos have also circulated on social media showing students being assaulted in their residences.
