The Special Investigation Unit (SIU) has revealed serious irregularities in the Free State Provincial Government’s bursary scheme, following a probe authorized by President Cyril Ramaphosa examining activities dating back to 2017.
According to SIU spokespersons, the investigation uncovered R8.3 million in irregular expenditure linked to students who did not qualify for funding under the scheme, which was established to support underprivileged learners pursuing tertiary education. The program included both domestic students and international placements, with some recipients studying medical courses in countries such as China. Government initially invested nearly R4 billion in the initiative in the early 2000s.
Key findings presented by SIU spokespersons include:
- Nepotism and bypassed controls: Officials approved bursaries for their own children or family members by circumventing standard approval processes.
- “Ghost students”: Individuals who were not actively enrolled or studying received funding for extended periods.
- Extended study durations: Some beneficiaries took seven years to complete three-year academic programs, with funding continuing despite lack of progress.
- Payments to deceased student: A student who died before completing studies received payments from two sources. The Office of the Premier paid R34,000 to the University of the Free State, which deposited the funds into a suspense account after the student’s death. Separately, NSF paid R13,000 directly into the student’s bank account, which the parents subsequently used. SIU spokespersons noted that recovery of these funds was complicated because the presidential proclamation did not cover the NSF period and the parents lacked the means to repay. The official who approved the bursary and extensions was identified.
- Foreign national beneficiaries: Seven foreign nationals received bursaries from the Office of the Premier, with six funded on merit as top achievers. However, SIU spokespersons confirmed no approved policy deviation existed, as the scheme specifies bursaries are for South African citizens residing in the Free State. This resulted in R579,000 in irregular expenditure.
Complications were first flagged with the 2014 cohort of students placed in China, where funding was eventually discontinued, leaving students without support.
SIU spokespersons confirmed that disciplinary referrals have been made against implicated officials, some of whom have already been dismissed. The unit emphasized that recovery of misappropriated funds remains a priority, with efforts underway to reclaim money from ineligible students, officials who diverted funds to family members, and senior functionaries who facilitated the irregularities.
The investigation underscores systemic governance failures within the provincial bursary administration and highlights ongoing efforts to strengthen accountability in public funding programs.
