The Special Investigating Unit (SIU) is seeking to recover R8 million linked to the Free State provincial government’s irregular awarding of bursaries in a scandal involving deceased students, foreigners and ineligible beneficiaries, says its acting head, Leonard Lekgetho.
The SIU investigated the Free State provincial government’s bursary scheme during former premier Sisi Ntombela’s tenure and uncovered serious maladministration, unauthorised bursary awards and irregular expenditure by officials between 2017 to 2023.
“Officials awarded bursaries to their relatives, the deceased and foreign nationals, as well as ineligible officials and left millions of rand in university accounts unaccounted for,” Lekgetho said at a briefing on Tuesday.
The bursary scheme, authorised by President Cyril Ramaphosa, was intended to support financially disadvantaged students in accessing higher education and to address shortages in scarce skills. The auditor-general’s 2020 report flagged irregularities in the province’s bursary award system.
“The investigation confirmed that a deceased student received a bursary from both the Office of the Premier and NSFAS [National Student Financial Aid Scheme]. The Office of the Premier paid R34 000 to the University of the Free State, which deposited the money into an expense account after the student’s death.”
Lekgetho said the NSFAS paid R13 000 into the student’s account, which was subsequently used by the student’s parents. He added that the parents lacked the means to repay the funds.
“The investigation showed that seven students who received funding from the Office of the Premier were foreign nationals, with six of them funded on a merit basis as top achievers. However, the SIU found no approval to deviate from the bursary policy, which specifies that bursaries are for South African citizens residing in the Free State,” he said.
That resulted in R579 000 being spent on foreign students.
The SIU also found that some students who failed courses continued receiving funding because their bursary agreements were not terminated. That led to a three-year bursary funding students for seven years.
The investigation examined a memorandum of understanding between the Office of the Premier and an international institution under which the province was required to contribute 35% of study fees. Instead, the province contributed 65%, resulting in irregular expenditure of R8.5m, which the SIU is seeking to recover.
In the 2019/20 financial year, government officials also received funding despite not qualifying for full-time funding under the bursary policy.
The SIU’s probe further uncovered R1.8m in excessive funding allocated to students studying overseas who failed to fulfil their bursary commitments.
“The investigation found that officials did not properly monitor excess funds in university expense accounts, leaving millions unused,” Lekgetho said.
The SIU recovered R6.3m from seven universities, he said. “The SIU has signed 18 acknowledgements of debt, totalling R1.9m, with individuals who received undue benefits from the bursary scheme. To date, we have recovered R283 000 through these instalments.”
The SIU has made 36 referrals for disciplinary action against officials, including human resources personnel, administrative clerks and directors, for contravening the Public Finance Management Act and the Free State bursary policy.
Lekgetho said evidence indicating seven individuals committed criminal offences had been referred to the National Prosecuting Authority for prosecution on charges including fraud, theft and money laundering.
“Officials turned opportunity into exploitation and service into self-interest,” he said. “They violated the trust of the people and the vision of our democracy. But through recoveries, disciplinary action, criminal reform and systemic reform, the SIU is reclaiming that trust.”
Free State Premier MaQueen Joyce Letsoha-Mathae said the investigation revealed historical administrative weaknesses and inadequate oversight mechanisms.
“One of the key lessons emerging from this process is the need for stronger government systems and more transparent processes in the allocation of bursaries,” she said.
Letsoha-Mathae said disciplinary action had been taken against eight employees.
“Furthermore, one senior official who unlawfully awarded bursaries to himself and members of his family has already been dismissed from public office,” she said.
The SIU has made 36 referrals for disciplinary action against officials, including human resources personnel, administrative clerks and directors, for contravening the Public Finance Management Act and the Free State bursary policy
