Officials in the Free State Premier’s Office handed out government bursaries to relatives, foreign nationals and ineligible public servants and even continued funding a student after his death, a Special Investigating Unit (SIU) probe has revealed.
Acting SIU head Leonard Lekgetho unveiled the findings on Tuesday by describing the scandal as a betrayal of a programme designed to help needy students gain access to higher education and address scarce skill shortages in the province.
Bursary system abused
“The SIU’s investigation into the affairs of the Office of the Premier in the Free State Province has uncovered serious maladministration and unauthorised awarding of bursaries and irregular expenditure by officials,” Lekgetho said.
According to the SIU, officials abused a bursary system intended to uplift young people by approving funding for their own relatives, foreign nationals and government employees who did not qualify for full-time bursaries.
The investigation was authorised by President Cyril Ramaphosa under Proclamation 123 of 2023, following concerns raised by the auditor-general about irregularities in the administration of the bursary programme.
Due process not followed
Among the most startling findings was that one official awarded bursaries to relatives without following due process.
The SIU also found that an official received government funding without submitting a compliant bursary application, while another beneficiary continued receiving support linked to an international scholarship programme even after resigning from government service.
In one case, bursary contracts that should have been terminated after students failed modules were repeatedly extended.
“Certain students failed some of their modules during their studies, but the bursary contracts were never terminated by the OTP and continued from a three-year contract to a seven-year contract,” Lekgetho revealed.
International scholarship irregularities
The investigation further uncovered irregular expenditure exceeding R8.3-million linked to international scholarship arrangements.
The SIU found that a memorandum between the Office of the Premier and an overseas institution stipulated that the university would contribute 65% towards scholarship costs while the government would cover 35%.
Instead, investigators found the opposite occurred.
“However, the SIU found a contradiction in the agreement, with OTP eventually contributing 65% of the scholarship,” Lekgetho said.
Bursary money paid to deceased student
The investigation also exposed payments linked to a deceased student.
The SIU found that the student received bursary funding from both the Office of the Premier and the National Student Financial Aid Scheme (NSFAS).
The Premier’s Office paid R34 891.60 to the University of the Free State, while NSFAS deposited R13 000 into the student’s bank account after his death.
The student’s parents later used the NSFAS funds.
Lekgetho said officials responsible for approving the bursary and subsequent extensions had been identified.
Foreign nationals also benefit
Investigators also discovered that seven foreign nationals received bursaries, despite policy provisions limiting the programme to South African citizens residing in the Free State.
“The investigation showed that seven students who received bursaries from the OTP were foreign nationals,” Lekgetho said.
The SIU found no evidence that the required approval had been obtained to deviate from the policy.
The expenditure linked to the foreign students amounted to R576 734.48.
Government officials also improperly benefited from full-time bursaries despite policy rules only allowing employees to apply for part-time funding.
Excessive stipend payments
The investigation further uncovered excessive stipend payments amounting to R1.8-million.
Meanwhile, the SIU recovered R6.3-million from seven universities after discovering that officials had failed to monitor surplus money sitting in university suspense accounts.
The unit also secured 18 acknowledgements of debt worth R1.9-million from beneficiaries who received undue benefits from the scheme.
So far, R283 571 has been repaid through instalments.
The SIU has referred 38 officials for disciplinary action and handed evidence against seven individuals to the National Prosecuting Authority for possible prosecution on charges, including fraud, theft, and money laundering.
“The SIU’s investigation has exposed not just maladministration, but a moral failure, a collapse of civic duty and ethical leadership,” Lekgetho said.
“Officials turned opportunity into exploitation, and service into self-interest. They violated the trust of the people and the vision of our democracy.”
- Free State Premier's Office officials improperly awarded government bursaries to relatives, foreign nationals, ineligible public servants, and continued funding a deceased student, per an SIU investigation.
- The SIU uncovered over R8.3 million in irregular expenditure, including reversed scholarship contributions where the government paid 65% instead of the stipulated 35%.
- Officials extended bursary contracts despite students failing modules and allowed foreign nationals and employees improper access to full-time bursaries, violating policy.
- The SIU recovered R6.3 million from universities and secured acknowledgements of debt totaling R1.9 million from beneficiaries who received undue funds.
- Thirty-eight officials face disciplinary actions and seven individuals have been referred to the National Prosecuting Authority for potential fraud, theft, and money laundering charges.
Officials in the Free State Premier's Office handed out government bursaries to relatives, foreign nationals and ineligible public servants and even continued funding a student after his death, a Special
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In one case, bursary contracts that should have been terminated after students failed modules were repeatedly extended.
"Certain students failed some of their modules during their studies, but the bursary contracts were never terminated by the OTP and continued from a three-year contract to a seven-year contract,"
Instead, investigators found the opposite occurred.
"However, the SIU found a contradiction in the agreement, with OTP eventually contributing 65% of the scholarship,"
Investigators also discovered that seven foreign nationals received bursaries, despite policy provisions limiting the programme to
"
Government officials also improperly benefited from full-time bursaries despite policy rules only allowing employees to apply for part-time funding.
Meanwhile, the SIU recovered R6.3-million from seven universities after discovering that officials had failed to monitor surplus money sitting in university suspense accounts.
So far, R283 571 has been repaid through instalments.
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"Officials turned opportunity into exploitation, and service into self-interest.
