The Special Investigating Unit (SIU) is moving to recover approximately R8.3 million in irregularly awarded bursary funds from the Free State Premier’s Office, including payments made to a deceased student’s account, relatives of officials, and foreign nationals.
Selby Makgotho, Head of Communications for the SIU, confirmed the unit is pursuing recovery actions following an investigation triggered by a referral from the Auditor General under Proclamation R123 of 2023. The probe uncovered what Makgotho described as “policy violations and transgressions” in the awarding of bursaries, with funds disbursed without proper documentation or paper trails.
“We did find that indeed there were irregularities that came about relating to policy violations and transgressions relating to the awarding of bursaries in the office of the premier in the Free State province,” Makgotho stated.
Among the most sensitive aspects of the investigation is the recovery of R34,000 paid into the account of a student after their death. Makgotho acknowledged the complexity of this case, noting that investigators engaged with the family, who indicated they lacked the means to repay the funds and were unaware the payment had been made posthumously.
“The family has not been made aware [of the payment],” Makgotho explained. “We went into the family through our various investigative methods to make a financial assessment and make a thorough legal determination… and indeed we came to a determination that it has been a difficult situation for the family.”
However, Makgotho emphasized that the SIU believes the payment was part of a broader orchestrated scheme. “The indications are that this was a known orchestrated scheme and as part of consequence management… the person who made that payment sure bears the onus to make sure that that money is paid.”
The investigation has resulted in significant accountability measures:
- Seven criminal referrals to law enforcement agencies for possible prosecution on charges including theft and money laundering
- 38 disciplinary referrals against officials within the Premier’s Office
- Engagement by the Hawks and the National Prosecuting Authority in pursuing legal mandates
Makgotho noted that some irregular bursary recipients were foreign nationals located in countries including Lesotho and Switzerland, though the rationale for their selection remains under investigation. The cumulative value of irregular awards across all categories is being assessed.
The SIU targets completion of its investigation by September 30, 2026, when a final report detailing findings and responsible parties will be submitted. This report will support civil recovery proceedings to reclaim state funds.
Makgotho also highlighted broader systemic efforts, noting that the SIU currently has approximately 19 matters referred by the Auditor General nationwide concerning bursary schemes. “Our memorandum of understanding is beginning to see and yield fruits and good results,” he said, pointing to the Free State case as an example of effective collaboration between audit outcomes and consequence management.
Within the Free State Premier’s Office, Makgotho confirmed that consequence management is underway, with some officials having faced disciplinary hearings and one official having been dismissed, though that individual is reportedly challenging the dismissal through the labour court. The Premier has assured that the bursary programme is now under enhanced oversight.
The SIU continues to piece together evidence to ensure pointed recovery actions against those who transgressed, while acknowledging the challenges in recovering funds from vulnerable parties who may have been used as conduits in unauthorized payment schemes.
