By Lebone Rodah Mosima
The Special Investigating Unit (SIU) says more than R8.3 million was misused in the Free State Office of the Premier’s (OTP) bursary programme, following findings of serious maladministration, irregular expenditure and the awarding of bursaries to ineligible beneficiaries.
Acting SIU head Leonard Lekgetho told a media briefing on Tuesday that the scheme, intended to fund scarce-skills studies for needy students, was instead compromised by officials who bypassed policies and approved payments to relatives, deceased persons, foreign nationals and officials who did not qualify.
“Officials awarded bursaries to relatives, deceased persons, foreign nationals, as well as ineligible officials, and left millions of rand in university accounts unaccounted for,” Lekgetho said.
The investigation, authorised by President Cyril Ramaphosa under Proclamation 123 of 2023, was prompted by Auditor-General of South Africa (AGSA) reports for 2019 and 2020, which flagged irregularities in bursary administration.
Lekgetho said officials failed to follow application and approval processes, including cases where relatives were funded without due procedure and where an official received funding despite not submitting a bursary application for studies that began in 2017.
He added that some students who failed modules remained on bursary support, with contracts extended from three to seven years in breach of policy.
Others were funded for qualifications not listed in the provincial workplace skills plan.
The SIU also found an international bursary arrangement in which the Free State government ultimately funded 65% of costs, contrary to the terms of an initial memorandum of understanding.
In one case, a deceased student received funding from both the OTP and the National Student Financial Aid Scheme (NSFAS).
The OTP paid R34,891.60 to the University of the Free State, while NSFAS deposited R13,000 into the student’s account, which was accessed by the family.
The funds could not be recovered.
Lekgetho said NSFAS funding fell outside the scope of the SIU proclamation.
The probe also found that seven bursary recipients were foreign nationals, despite policy limiting awards to South African citizens residing in the Free State, resulting in irregular expenditure of R576,734.48.
He said officials also received full-time bursaries despite being eligible only for part-time support under policy, while some recipients were paid excessive stipends, contributing to irregular payments totalling about R1.8 million.
The OTP has begun recovering funds from students who studied abroad and failed to meet bursary obligations, he added.
Lekgetho said the SIU had recovered R6.3 million from seven universities and signed 18 acknowledgements of debt worth R1.9 million with individuals who received undue benefits.
A further R283,571 has been recovered through instalments to date.
The unit has made 38 disciplinary referrals against officials across various levels, including human resources officers and senior managers, for alleged breaches of the Public Finance Management Act and bursary policy.
Evidence of potential criminal conduct involving seven individuals has been referred to the National Prosecuting Authority (NPA) for possible prosecution on charges including fraud, theft and money laundering.
“These referrals are not symbolic. They represent accountability and ensure those who abused power face the law,” Lekgetho said.
He said the investigation had exposed “a moral failure” in the administration of the scheme.
The SIU said it would continue recovery efforts and pursue disciplinary and criminal action where warranted.
INSIDE EDUCATION
