Student leaders accused of extortion over private residence placements

Several landlords of privatestudent accommodationacross the Eastern Cape have raised concerns about alleged extortion by some student leaders, claiming they are being forced to pay monthly kickbacks to secure student placements in their residences. The landlords, who did not want to be named, alleged that certain student leaders at theUniversity of Fort Hare,Walter Sisulu UniversityandBuffalo City Collegewere demanding payments of between R100 and R200 a month per student accommodated in private residences. They said the payments, which they had to pay in cash which they allege was at the insistence of student leaders to avoid a paper trail, were made monthly over a 10-month academic year.

Depending on the size of the residence, this can amount to between R10,000 and R44,000 a month — or as much as R100,000 to R440,000 over the academic year. Several landlords said failure to comply resulted in students being diverted to other residences or compliance complaints being made against their facilities. One East London landlord, who houses more than 220 students, said he had paid more than R800,000 over the past two years.

“This is not new. It has been happening for years,” he said. “Because there is an accommodation shortage, student leaders recommend students to private establishments where NSFAS or the institution pays per student.

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“But they demand R200 a student a month. With 220 students, that is more than R40,000 a month for 10 months.” “They tell you they will not allow students to come to your residence in future and will raise compliance issues so that the university blacklists you.” Another landlord, who houses more than 80 students, said he was no longer willing to pay.

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