SIU uncovers R8.3 million in irregular spending in Free State bursary scheme

Millions of rands intended to help young people access higher education in scarce skills fields were allegedly diverted to government officials, their relatives, foreign nationals and even deceased beneficiaries in a shocking bursary scandal uncovered by the Special Investigating Unit (SIU).

The SIU says its investigation into the Free State Provincial Government’s bursary scheme exposed widespread maladministration, policy violations and irregular expenditure amounting to more than R8.3 million.

The scheme was designed to support qualifying students pursuing critical skills programmes at institutions of higher learning between 2017 and 2019.

Speaking at a briefing on Tuesday, Acting SIU Head, Leonard Lekgetho, said the investigation revealed that bursaries were awarded to ineligible recipients while officials failed to properly monitor public funds.

“The SIU investigation revealed that officials approved bursaries negligently, failed to comply with the eligibility criteria and irregularly extended the bursary contract.”

Among the most concerning findings was the case of a student who continued to benefit from bursary payments and the National Student Financial Aid Scheme (NSFAS) after their death.

According to the SIU, the Office of the Premier paid more than R34,000 to the University of the Free State on behalf of the student. The funds were later transferred to a suspense account.

In addition, NSFAS paid a further R13,000 into the student’s bank account, which was allegedly accessed by family members after the student’s death.

“Since the student had died before the completion of his studies, the fund could not be recovered, especially since the proclamation did not cover the NSFAS period. The parent also lacked the means to pay back the money that was deposited into the student’s account,” added Lekgetho.

The investigation also found that seven foreign national students received bursaries without the approval required under provincial policy.

“This resulted in expenditure of approximately R579,000 by the Office of the Premier,” Lekgetho added.

The SIU further uncovered poor financial controls at several universities, where excess bursary funds remained in suspense accounts for years.

Lekgetho said investigators have recovered R6.3 million from seven universities.

“The SIU has also secured 18 acknowledgements of debt totalling R1.9 million from individuals who unduly benefited from the bursary scheme. To date, R283,000 has already been repaid through instalments,” he said.

The investigation was launched following concerns raised by the Auditor-General in its 2019 and 2020 reports.

As a result, the SIU has made 36 disciplinary referrals against implicated officials, including administrative clerks, assistant directors, deputy directors and senior managers.

Evidence relating to seven individuals has also been referred to the National Prosecuting Authority (NPA) for possible criminal prosecution on charges including fraud, theft and money laundering.

“These referrals are not symbolic. They represent the SIU’s unwavering commitment to accountability and ensuring that those who abuse public resources face the full consequences of the law,” said Lekgetho.

Meanwhile, the Office of the Premier is separately pursuing the recovery of about R1.8 million from students who studied abroad but allegedly failed to meet the conditions attached to their funding.

Two reports have already been submitted to President Cyril Ramaphosa, with the SIU’s final report expected in September.

The Special Investigating Unit’s (SIU) investigation into the affairs of the Office of the Premier (OTP) in the Free State Province has uncovered serious maladministration and unauthorised awarding of bursaries, and irregular expenditure by officials

— Special Investigating Unit (SIU) (@RSASIU) June 2, 2026