University of Fort Hare Fraud and Money Laundering Scheme: Three Suspects Granted Bail

The Directorate for Priority Crime Investigation (Hawks) confirmed the arrests, which followed a lengthy and detailed investigation by the East London-based Serious Corruption Investigation team.

In a significant development in the fight against corruption in South Africa's education sector, three suspects have been granted bail following their arrests in connection with a multi-million-rand fraud and money laundering scheme at the University of Fort Hare. The Directorate for Priority Crime Investigation (Hawks) confirmed the arrests, which followed a lengthy and detailed investigation by the East London-based Serious Corruption Investigation team.

The three suspects, identified as former Acting Chief Financial Officer Simbongile Geqeza (41), former Head of Investigation and Vetting Isaac Plaartjies (57), and Claudine Davids (44), a family friend of one of the accused, were charged with fraud, money laundering, and corruption. The three appeared before the Alice Magistrate's Court on Wednesday, where they were formally charged, and each granted bail of R10,000.

The investigation into the fraudulent activities at the university revealed two separate schemes that together drained over R2 million from the institution’s funds. According to the Hawks, the first fraudulent activity occurred on September 2, 2021, when Geqeza allegedly issued a false instruction to a bank, authorizing a payment of R1.4 million to a company with no legitimate ties to the university. The suspicious payment was flagged after university management noticed discrepancies in their financial records and promptly reported the matter to the Hawks.

Through further investigation, the Hawks uncovered a second fraudulent transaction. This involved a payment of R985,000 made to a service provider who was supposed to provide investigative services. However, the investigation found that the services were never rendered, and the payment was reportedly facilitated by Plaartjies, who had collaborated with the service provider in order to funnel the funds to Davids. The service provider allegedly claimed to have assisted the Hawks in an investigation at the university, but no such services had been provided.

The Hawks’ Serious Corruption Investigation team meticulously pieced together the details of the fraudulent schemes, ultimately uncovering the money laundering aspect of the operation. The funds, according to investigators, were systematically funneled through various transactions in an attempt to obscure the origin and destination of the illicit money.

The three suspects were arrested on April 1, 2025, in a coordinated operation carried out by the Hawks. They were apprehended in different parts of South Africa, which included both urban and rural locations. The arrests represent a significant breakthrough in the investigation and a strong step toward tackling corruption at South Africa’s higher learning institutions.

During the court appearance, the suspects were granted bail of R10,000 each, but the case has been postponed to April 4, 2025, for further investigation. The Hawks have made it clear that they are continuing to investigate the full extent of the fraud and money laundering activities, and more charges could follow as the investigation unfolds.

This case highlights the growing concern over corruption in the education sector, with university finances becoming increasingly vulnerable to fraudulent activities. The Hawks’ operations and arrests in cases like this demonstrate the government's commitment to addressing corruption and ensuring accountability in public institutions.

The University of Fort Hare, which has a storied history as one of South Africa’s oldest and most prestigious universities, is now at the center of this high-profile corruption case. The institution's leadership has promised to cooperate fully with authorities to ensure that justice is served and to restore confidence in the university's financial operations.