The Special Investigating Unit (SIU) has exposed what it describes as a “moral failure” and a “collapse of civic duty” within the Free State Office of the Premier (OTP), revealing that a provincial bursary scheme designed to uplift needy students was systematically exploited by government officials.

The investigation, authorised by President Cyril Ramaphosa under Proclamation 123 of 2023, has uncovered a web of maladministration, nepotism, and irregular expenditure totalling over R8.3 million.

Acting Head of the SIU, Leonard Lekgetho, detailed the findings during a press conference on 2 June, outlining how officials diverted public funds intended for scarce-skills professions to their relatives, foreign nationals, and even a deceased student.

The SIU has made 38 disciplinary referrals against implicated officials, ranging from administration clerks to high-level directors, for contravening the Public Finance Management Act (PFMA) and provincial bursary policies. Furthermore, evidence of criminal conduct involving seven individuals has been referred to the National Prosecuting Authority (NPA). These individuals face potential prosecution for charges including fraud, theft, and money laundering.

The investigation paints a grim picture of how the OTP managed education funds. Investigators found that some officials awarded bursaries to their own relatives without following any due process. In one instance, an official received funding for his own studies despite never submitting a formal application and failing to meet the minimum human resource requirements.

The SIU also discovered that the scheme was funding students who failed their modules. Rather than terminating these contracts as required, the OTP allowed three-year bursary agreements to irregularly extend into seven-year contracts, further draining the province’s resources. Additionally, some applicants received funding for qualifications that were not even listed on the 2018/19 Provincial Workplace Skills Plan.

One of the most startling findings involved a deceased student who continued to receive funding from both the OTP and the National Student Financial Aid Scheme (NSFAS) after his death. The OTP paid R34,891.60 to the University of the Free State, which was deposited into a suspense account after the student had passed away. NSFAS also deposited R13,000 into the student’s bank account, which was subsequently used by his parents. The SIU noted that while these funds could not be recovered due to the student’s death and the parents’ lack of means, the officials who approved and extended this funding have been identified for disciplinary action.

Furthermore, the investigation revealed that seven foreign nationals were funded by the OTP. While six were top achievers, the SIU found no legal approval to deviate from the bursary policy, which strictly restricts funding to South African citizens residing in the Free State. This unauthorized deviation resulted in an expenditure of R576,734.48.

The SIU is currently working to claw back millions in mismanaged funds. To date, the unit has recovered R6.4 million from Higher Education Institutions after identifying excess funds left unmonitored in university suspense accounts.

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In addition to recoveries from institutions, 18 Acknowledgements of Debt  have been signed with individuals who received undue benefits, representing a value of approximately R1.9 million. The unit is also addressing R1.8 million in excessive stipend payments made to students studying abroad, particularly in China and Turkey, where monthly payments were irregularly increased based on “cost of living” adjustments without proper policy alignment.

While 73 investigations under this proclamation have been closed, the SIU emphasised that the work is far from over. “We are rebuilding the bridge between education and nation-building,” Lekgetho stated, vowing to pursue every cent of the misspent public money.

The OTP has reportedly begun its own process of reclaiming funds from students who failed to meet their bursary commitments after studying abroad. The SIU’s final report on the scheme is expected to be submitted to the President in September.

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