A 58-year-old Mthatha businessman has been arrested by the Hawks for fraud amounting to R9.5-million.
The suspect was arrested after he presented himself to the Hawks at the latter's commercial crimes unit offices in Mthatha accompanied by his lawyer in the morning.
Hawks Eastern Cape provincial spokeswoman Captain Anelisa Feni said the businessman had allegedly signed a lease agreement with the University of Fort Hare to accommodate the university's students at his block of flats in East London in November last year.
"It is further alleged that the businessman then used the letter to obtain a loan of approximately R9.5-million from a bank in Mthatha," she said.
However the university had alerted the Hawks in December that it had not signed a lease agreement with the businessman.