The Special Investigating Unit (SIU) has uncovered widespread maladministration in the awarding of government bursaries by the Free State Office of the Premier, including funding awarded to foreign nationals, relatives of officials and even a deceased student.
The investigation was launched following a referral from the Auditor-General of South Africa (AGSA), which identified irregularities in the management of bursary funds intended to support education and youth development in the province.
SIU Investigation Into Free State Bursaries
Speaking at a media briefing in Pretoria, Acting Head of the SIU, Leonard Lekgetho, said the Auditor-General's reports for 2019 and 2020 highlighted serious concerns regarding the administration of the bursary programme.
The bursaries under investigation were awarded during the tenure of former Free State Premier Ace Magashule. President Cyril Ramaphosa authorised the investigation through Proclamation 123 of 2023.
“The SIU’s investigation revealed that officials approved bursaries negligently, failed to comply with the eligibility criteria, and irregularly extended bursary contracts,” Lekgetho said.
Deceased Student Received Bursary Funding
One of the most concerning findings involved a deceased student who continued to receive financial support from both the Free State Office of the Premier and the National Student Financial Aid Scheme (NSFAS).
“The Office of the Premier paid R34 891.60 to the University of the Free State, which deposited the money into a suspense account after the student's death. NSFAS also paid R13 000 into the student's bank account, which his parents used.
“Since the student had died before completing his studies, the funds could not be recovered, especially since the proclamation did not cover NSFAS. The parents also lack the means to pay back the money.
"The SIU identified the officials who approved the bursary and extension, resulting in the payment of R34 891.60, as well as funding courses the student failed to complete, resulting in breach of contractual and policy obligations,” Lekgetho said.
Foreign Nationals Awarded Free State Bursaries
The SIU also found that seven bursary recipients were foreign nationals, despite the bursary policy stipulating that only South African citizens residing in the Free State qualify for funding.
According to the investigation, six of the foreign students were funded as top academic achievers. However, investigators found no evidence that approval had been granted to deviate from the established bursary policy.
The funding awarded to these students resulted in irregular expenditure amounting to R576 734.48.
R8.3 Million Spent Through The Bursary Programme
The investigation found that approximately R8.3 million was spent through the bursary scheme, benefiting 161 students and 16 government officials from various departments.
The SIU also discovered cases where bursary funding was extended far beyond the normal study period. In one example, a qualification expected to be completed within three years was funded for seven years.
Investigators further found instances where officials awarded bursaries to relatives without following the required approval processes.
Additionally, some bursaries were granted for qualifications that were not included in the 2018/19 Provincial Workplace Skills Plan.
Disciplinary Referrals And Debt Recovery
As a result of its findings, the SIU has made 38 disciplinary referrals involving officials across various levels of government, including administration clerks, human resources officials, Assistant Directors, Deputy Directors and Directors.
The unit has also secured 18 acknowledgements of debt worth a combined R1.9 million from individuals who benefited improperly from the bursary scheme.
Free State Government Welcomes Findings
Free State Premier Maqueen Letsoha-Mathae welcomed the investigation and pledged her administration's full cooperation with the SIU.
“Our objective is to ensure that eligibility requirements, approval, and oversight mechanisms are clearly defined and consistently applied,” she said.
The Premier also confirmed that disciplinary action would be taken against the eight employees implicated in the irregularities.
The SIU's findings have highlighted significant weaknesses in the administration of the bursary programme, with authorities now focusing on accountability, disciplinary action and strengthening oversight measures to prevent future abuses of public funds.
