Addressing the media on Tuesday (2/6), SIU head Leonard Lekgetho said the findings reflected not only administrative failures, but a deeper ethical collapse within the provincial government.

“What we uncovered was not just maladministration, but a moral failure and a collapse of civic duty and ethical leadership. Officials turned opportunity into exploitation and service into self-interest. They violated the trust of the people and the vision of our democracy.”

The investigation was conducted under Proclamation 123 of 2023 and focused on the office of the premier’s bursary programme during the 2017/18 financial year under former premier Ace Magashule. The SIU examined bursaries, accommodation, travel payments, and stipends that were awarded irregularly or in contravention of bursary policies.

Serious irregularities identified

The investigation followed concerns raised in the Auditor-General’s reports released in 2019 and 2020, which identified serious irregularities in the management of bursary funds intended to support education and youth development in the province.

The SIU made 38 disciplinary referrals against implicated officials, including human resource officers, administration clerks, assistant directors, deputy directors, and directors for contravening the Public Finance Management Act and the provincial bursary policy, said Lekgetho.

Evidence against seven individuals has also been referred to the NPA for possible criminal prosecution on charges including fraud, theft, and money laundering.

The report indicated officials negligently approved bursaries, ignored eligibility requirements, and unlawfully extended bursary contracts. One official allegedly awarded bursaries to relatives without following proper procedures.

Investigators also found an official received funding for studies that began in 2017 despite failing to submit a qualifying bursary application. Some students who failed modules continued to receive financial support while bursary contracts were extended from three years to as long as seven years without justification.

“Some applicants received bursaries for qualifications that were not part of the 2018/19 provincial workplace skills plan, while required approval processes were ignored,” Lekgetho said.

‘This resulted in irregular expenditure of more than R8.3m’

In another case, an official who received an international government-funded bursary allegedly continued to receive benefits even after resigning from the office of the premier.

Although a memorandum of understanding between the office of the premier and an international tertiary institution stated the institution would cover 65% of the scholarship costs and the provincial government 35%, the SIU found the provincial government ultimately paid 65%. 

“This resulted in irregular expenditure of more than R8.3m, which the SIU is now seeking to recover,” Lekgetho said.

The investigation also confirmed a deceased student received bursary funding from both the premier’s office and NSFAS. The premier’s office paid more than R34,000 to the University of the Free State, while NSFAS deposited R13,000 into the student’s bank account after the student’s death.

The SIU also identified seven foreign nationals who received bursaries from the provincial government, despite policy requirements stating bursaries are reserved for South African citizens residing in the Free State.

This resulted in irregular expenditure of more than R576,000. Officials failed to properly monitor excess funds held in university suspense accounts, leaving millions of rand unused. The SIU managed to recover R6.3m from seven universities.

‘The SIU would continue to pursue accountability and recover public funds‘

In addition, 18 acknowledgements of debt worth R1.9m have been signed with individuals who unduly benefited from the bursary scheme. To date, more than R283,000 has already been repaid through instalments.

Lekgetho said the SIU would continue to pursue accountability and recover public funds lost through corruption and maladministration.

Free State premier MaQueen Letsoha-Mathae has welcomed the findings by the SIU and promised consequence management against those implicated in her office.

OFM News/Kekeletso Mosebetsi sm

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