The Special Investigating Unit (SIU) has initiated civil recovery proceedings to reclaim approximately R8.3 million disbursed through irregular bursary awards administered by the Free State Premier’s Office. The funds were allocated in violation of established policies, with recipients including relatives of officials, foreign nationals, and even a student who had already passed away.
Selby Makgotho, Head of Communications for the SIU, confirmed that the investigation was launched under Proclamation R123 of 2023 following a referral from the Auditor General regarding material irregularities detected during audit processes.
“The SIU made a request for a proclamation and during the investigation authorized by the proclamation, 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.
A central focus of the recovery effort involves R34,000 deposited into the account of a deceased student after their death. According to Makgotho, SIU investigators engaged directly with the student’s parents, who indicated they were unaware of the posthumous payment and lacked the financial capacity to return the funds.
“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.”
Despite expressing sympathy for the family’s circumstances, Makgotho stressed that the SIU views the transaction as indicative of a coordinated irregularity. “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 broader investigation has yielded substantial accountability actions:
- Seven criminal referrals submitted to law enforcement agencies for potential prosecution on charges including theft and money laundering
- 38 disciplinary referrals lodged against officials within the Premier’s Office
- Active engagement by the Hawks and the National Prosecuting Authority in advancing legal processes
Makgotho also revealed that some irregular bursary recipients were foreign nationals based in neighbouring countries such as Lesotho and Switzerland, though the criteria used to select these beneficiaries remains under scrutiny. The cumulative value of questionable allocations across all categories is still being finalised.
The SIU aims to conclude its investigation by September 30, 2026, at which point a comprehensive final report will be submitted. This document will outline detailed findings, identify individuals responsible at various levels of authority, and support targeted civil recovery proceedings.
On the question of systemic reform, Makgotho noted that the Free State bursary probe is part of a wider collaborative framework between the SIU and the Auditor General. Approximately 19 additional matters referred from audit outcomes nationwide are currently under assessment.
“Our memorandum of understanding is beginning to see and yield fruits and good results,” Makgotho said. “This Free State bursary scheme is one such example and outcome of a collaboration.”
Within the Free State Premier’s Office, consequence management measures are already unfolding. Makgotho confirmed that disciplinary hearings have been conducted, with some officials found guilty. One official has been dismissed and is reportedly challenging the decision through the labour court. The Premier has publicly assured that the bursary programme is now subject to strengthened oversight mechanisms.
As the SIU finalises its evidence gathering, the unit remains focused on ensuring that state funds improperly disbursed are recovered, while holding accountable those who authorised or benefited from the irregular allocations. Makgotho emphasised that the unit’s approach prioritises precision in recovery actions, particularly where vulnerable parties may have been used as conduits in unauthorised payment schemes.
