Free State Commits to Prosecution and Reform After SIU Uncovers Bursary Fraud

The Free State provincial government has committed to pursuing both disciplinary and criminal action against individuals implicated in the mismanagement of its bursary scheme, following the release of a Special Investigating Unit (SIU) report detailing widespread irregularities. Director-General Molefinyana Phera confirmed the province’s full cooperation with the findings and outlined steps already taken to overhaul the system.

The investigation centered on the improper allocation of approximately 8 million rand in public funds through the provincial bursary programme during the 2017–2018 financial period. According to the SIU’s 2019 audit report, the scheme suffered from critical governance failures that enabled corruption and maladministration.

“We agree with the findings of the SIU. We welcome them, and we are actually happy that this report has come forward because it has been long coming,” Director-General Phera stated. “While it was on the way, we were busy fixing our governance systems to ensure that there is no more corruption and maladministration of the bursary system.”

The period under review saw two individuals serve as Premier, with a separate official holding the position of Director-General in the Premier’s office at the time. The SIU report does not directly name any political office bearers in connection with the irregularities. Instead, it identifies eight officials from the Premier’s office who abused their authority in processing bursary applications. All eight are now facing internal disciplinary processes.

One deputy director, who awarded bursaries to himself and his children and diverted recovered funds into his personal account, has already been dismissed. The remaining seven implicated officials continue to work within the bursary office while disciplinary proceedings are finalized.

The report also flagged cases where foreign nationals received bursaries contrary to provincial policy. Director-General Phera explained that while some foreign students were legitimately included because they ranked among the province’s top 100 matriculants and were studying locally, other instances appeared intentional. “About seven of those students who received bursaries and were foreigners actually came from the list of top 100 matric students in the province,” he noted. “But it doesn’t detract from the fact that foreign nationals shouldn’t have received bursaries because our policy prevented that.”

In response to these findings, the province has implemented structural reforms designed to prevent recurrence. Previously, bursaries were allocated through closed nominations by political office bearers and heads of department, with no public advertisement or competitive vetting. That system has been replaced: bursaries are now publicly advertised, and beneficiaries are selected through a transparent, merit-based process. Additionally, the international component of the scheme has been discontinued after students enrolled at unaccredited overseas institutions returned without recognized qualifications.

“Selection has become more competitive, more inclusive, and there is no single official or even political office bearer able to nominate their own preferred beneficiary,” Director-General Phera affirmed.

On accountability, the Director-General confirmed that the SIU has referred multiple cases for criminal investigation. The provincial government is actively assisting police services with evidence collection to support prosecutions. “Where we find that in addition to disciplinary issues there were criminal elements, we will not hesitate to open criminal cases,” he stated. Approximately seven criminal referrals have been submitted to date, covering both implicated officials and beneficiaries who were ineligible for funding.

Premier MaQueen Letsoha-Mathae’s office has reaffirmed its commitment to ensuring that all individuals found responsible for the misuse of public funds face appropriate consequences. The province maintains that the governance enhancements already implemented, together with ongoing legal processes, will help restore public trust and ensure that bursary resources reach deserving students in accordance with policy.

 

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