A Special Investigating Unit (SIU) probe has exposed serious governance failures in the Free State’s bursary allocation system, revealing that R8.3 million in student funding was distributed irregularly by the provincial Office of the Premier during the 2017/2018 financial year.
The investigation, prompted by Auditor General findings from 2019/2020 and enabled by a 2023 presidential proclamation, determined that 161 students received bursaries through processes that bypassed statutory requirements and compliance frameworks. Acting SIU Head Leonard Lekgetho confirmed that funds reached foreign nationals, family members of government employees, and applicants who failed to meet eligibility criteria.
SIU Spokesperson Selby Makgotho detailed that the irregularities stemmed from a complete absence of monitoring policies and inadequate verification procedures. In some instances, recipients could not be traced on the national population register, raising fundamental questions about beneficiary validation. The probe also examined how a suspense account was established and utilized to facilitate these disbursements.
“We found that bursaries were awarded in a manner that did not meet statutory, legal and other compliance frameworks,” Makgotho stated. “People who were not deserving ultimately ended up being awarded the bursaries.”
The SIU has already referred matters to prosecuting authorities and submitted systemic improvement recommendations to the Office of the Premier. Makgotho confirmed that officials implicated in the irregularities have been identified and are facing disciplinary proceedings. The final investigation report is scheduled for publication on 30 September, following a three-month extension to complete outstanding interviews, record analysis, and rights-of-reply processes.
Makgotho emphasized procedural rigor, noting that the SIU recently contacted individuals whose names appeared as recipients—some of whom expressed shock, stating they never applied for or received the funds. “These final details are relevant because this report will inform court proceedings,” he explained. “We need to ensure our processes are fully compliant.”
Sabelo Ngwenya, regional spokesperson for the ANC Youth League in Mangaung, welcomed the investigation’s outcomes while stressing the human cost of the irregularities. He noted that R6.3 million has since been recovered but argued that accountability must extend beyond financial restitution.
“These bursaries were supposed to reach rightful owners,” Ngwenya said. “Instead, deserving students were deprived of educational access.” He called for the immediate suspension and dismissal of the 38 officials implicated, pending investigation outcomes.
Ngwenya cited specific violations of the Public Finance Management Act (PFMA), including Section 38—relating to failure to prevent irregular expenditure and maintain effective financial risk systems—and Section 45, concerning ineffective management of state resources. He acknowledged historical governance challenges in the province but stressed that current bursary allocations are being processed correctly and awarded to qualified candidates.
The SIU continues to verify oversight mechanisms used during the awarding process and assess the criteria applied by approving officials. Makgotho reiterated that the unit’s work remains focused on ensuring both individual accountability and systemic reform to prevent recurrence.