Free State Bursary Probe Exposes Mismanagement and Fraudulent Claims

The Special Investigation Unit (SIU) has detailed extensive irregularities within the Free State Provincial Government’s bursary programme, following a presidential mandate from Cyril Ramaphosa to investigate conduct from 2017 onwards.

SIU spokespersons outlined that the probe identified R8.3 million in irregular expenditure linked to beneficiaries who did not meet eligibility criteria for the scheme, which was designed to provide tertiary education opportunities to underprivileged learners. The initiative, which received an initial government investment of nearly R4 billion in the early 2000s, supported both domestic students and international placements, including medical studies in countries such as China.

According to SIU spokespersons, the investigation revealed multiple governance failures:

• Improper approvals for relatives: Officials circumvented internal controls to secure bursaries for their own children or family members.
• Funding for non-existent or inactive students: So-called “ghost students” received continuous funding despite not being enrolled or actively pursuing studies.
• Prolonged study periods without accountability: Certain beneficiaries took up to seven years to complete three-year qualifications, with funding persisting despite academic stagnation.
• Payments processed after a student’s death: A deceased student was found to have received funds from two sources. The Office of the Premier disbursed R34,000 to the University of the Free State, which placed the amount in a suspense account following confirmation of the student’s death. Separately, NSF transferred R13,000 directly into the student’s personal bank account; these funds were accessed by the parents after the student passed away before completing their studies. SIU spokespersons noted that recovery of these amounts was hindered because the presidential proclamation did not extend to the NSF-administered period, and the parents lacked financial capacity to repay. The official responsible for approving the bursary and subsequent extensions was identified.
• Foreign nationals funded contrary to policy: Seven foreign nationals received bursaries from the Office of the Premier, with six selected on merit as high-performing students. However, SIU spokespersons confirmed there was no documented approval to deviate from scheme policy, which restricts eligibility to South African citizens residing in the Free State. This resulted in R579,000 in irregular expenditure.

Complications with the scheme were initially raised concerning the 2014 cohort placed in Chinese institutions, where funding was later withdrawn, leaving students without financial support.

SIU spokespersons confirmed that disciplinary processes have been initiated against implicated officials, with some already dismissed from service. A central focus of the unit’s recommendations is the recovery of misdirected public funds. Efforts are underway to reclaim money from ineligible student beneficiaries, officials who diverted allocations to relatives, and senior functionaries who enabled the irregular approvals—including those who facilitated funding for foreign nationals outside policy guidelines.

The findings point to significant weaknesses in oversight and approval mechanisms within the provincial bursary administration. SIU spokespersons emphasized that strengthening governance frameworks and enforcing accountability remain critical to safeguarding future public education investments.