The Special Investigating Unit (SIU) has uncovered extensive maladministration and irregular bursary allocations within the Free State Office of the Premier, revealing that public funds were awarded to ineligible beneficiaries, including relatives of officials, foreign nationals, government employees and even a deceased student.
Speaking during a media briefing on Tuesday, Acting SIU Head Leonard Lekgetho said the investigation was authorised by President Cyril Ramaphosa through Proclamation 123 of 2023 following concerns raised by the Auditor-General of South Africa in its 2019 and 2020 audit reports.
According to the SIU, the bursary programme was established to assist financially needy students and address shortages in scarce skills professions within the province. However, investigators found widespread non compliance with bursary policies and financial controls.
Lekgetho said officials improperly awarded bursaries to relatives without following prescribed procedures, while some government employees unlawfully benefited from funding despite not qualifying.
The investigation further revealed that certain officials received bursaries without submitting valid applications, while others continued benefiting from government funded programmes after resigning from public service.
The SIU also found that bursary contracts were repeatedly extended for students who had failed academic modules, with some agreements continuing for up to seven years without proper review or termination.
In several cases, funding was approved for qualifications that were not included in the province’s Workplace Skills Plan, and mandatory approval processes were bypassed.
Among the findings was an official who awarded bursaries to family members outside the approved process, while another received funding despite failing to meet the requirements set out in applicable human resource development policies.
Investigators also uncovered irregularities involving an international scholarship agreement. According to the SIU, conflicting provisions in the agreement resulted in the Office of the Premier contributing 65% of scholarship costs instead of the intended 35%, leading to irregular expenditure exceeding R8.3 million.
A separate finding involved a deceased student who received funding from both the Office of the Premier and National Student Financial Aid Scheme (NSFAS). The Office of the Premier paid R34,891.60 to the University of the Free State on behalf of the student, while NSFAS deposited an additional R13,000 into the student’s account.
The SIU said the funds paid by NSFAS were later utilised by the student’s family after the student’s death, while recovery efforts have been limited by legal and financial constraints.
Investigators also found that seven foreign nationals received bursaries in contravention of policy requirements restricting funding to South African citizens residing in the Free State. The irregular expenditure linked to these awards amounted to more than R576,000.
Government officials were also found to have received full time bursaries during the 2019/20 financial year despite policies allowing only part time study support for employees.
The SIU identified excessive stipend payments totalling approximately R1.8 million, particularly among students studying abroad.
As part of its recovery efforts, the SIU recovered R6.3 million from seven universities after tracing unused bursary funds held in suspense accounts.
In addition, 18 acknowledgements of debt valued at R1.9 million have been signed by beneficiaries who received funding irregularly, with more than R283,000 already recovered through repayment arrangements.
The SIU has referred 38 officials for disciplinary action, including human resource officers, administrative clerks, assistant directors, deputy directors and directors accused of violating the Public Finance Management Act and provincial bursary policies.
Evidence involving seven individuals has also been referred to the National Prosecuting Authority (NPA) for consideration of criminal charges, including fraud, theft and money laundering.
Lekgetho said the referrals demonstrate the SIU’s commitment to accountability and ensuring that those implicated in the misuse of public funds are held responsible.
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