Acting Head Leonard Lekgetho: Free State bursary investigation findings

Members of the media,

Premier of the Free State Province,

Director General of the Free State Province

Valued South Africans participating in this press conference through online channels and other platforms, good morning.

I extend my gratitude for honouring our invitation to attend this event.

The Special Investigating Unit’s (SIU) investigation into the affairs of the Office of the Premier (OTP) in the Free State Province has uncovered serious maladministration and unauthorised awarding of bursaries, and irregular expenditure by officials. The Free State Provincial Government allocated funds to support needy students in accessing higher education and to address the shortage of scarce skills in the province through bursaries. Each year, funding is provided for Free State students pursuing scarce-skill professions at higher education institutions. However, officials awarded bursaries to their relatives, the deceased, and foreign nationals, as well as to ineligible officials, and left millions of Rands in university accounts unaccounted for.

This investigation was authorised by President Cyril Ramaphosa under Proclamation 123 of 2023. Two progress reports outlining the investigation's findings were submitted to the President, with the final report due in September. The investigation was initiated following a referral from the Auditor-General of South Africa (AGSA) concerning irregularities. The AGSA’s reports from 2019 and 2020 revealed serious irregularities in the management of bursaries and funds intended to educate and uplift youth in the Free State province.

Irregular bursary approvals

The SIU’s investigation revealed that officials approved bursaries negligently, failed to comply with the eligibility criteria, and irregularly extended bursary contracts.

One official awarded bursaries to relatives without following due process.

An official did not submit a bursary application for his studies, which commenced in 2017, but ended up receiving funding. The bursary application submitted by the official in 2017 for the 2018 academic year did not meet the requirements of the 11 May 2016 Human Resource Strategy and Development Circular for the 2017 academic year.

Certain students failed some of their modules during their studies, but the bursary contracts were never terminated by the OTP and continued from a 3-year contract to a 7-year contract

Some applicants received bursaries for qualifications that were not part of the 2018/19 Provincial Workplace Skills Plan; in some instances, the required processes were not followed before the approval of the bursary.

An official who applied for an international government-funded bursary received the benefits while in office and continued to receive them after resigning.

A copy of an incomplete Memorandum of Understanding provided by OTP between OTP and an international tertiary institution, provided that the institution would contribute 65% towards the scholarship, and OTP would contribute 35%. However, the SIU found a contradiction in the “agreement”, with OTP eventually contributing 65% of the scholarship.

This resulted in an irregular expenditure over R8.3 million, which the SIU is now seeking to recover.

Funding the deceased

The investigation confirmed that a deceased student had received bursaries from both OTP and NSFAS. OTP paid R34 891.60 to the University of the Free State, which deposited the money into a suspense account after the student's death. NSFAS also paid R13 000.00 into the student's bank account, which his parents used. Since the student had died before completing his studies, the funds could not be recovered, especially since the proclamation did not cover NSFAS. The parents also lack the means to pay back the money.

The SIU identified the officials who approved the bursary and extension, resulting in the payment of R34 891.60, as well as funding courses the student failed to complete, resulting in breach of contractual and policy obligations.

Foreign nationals funded without approval

The investigation showed that seven students who received bursaries from the OTP were foreign nationals, with six of them funded on a merit basis as top achievers. However, the SIU found no approval to deviate from the bursary policy, which specifies that bursaries are for South African citizens residing in the Free State. This resulted in an expenditure of R576 734.48.

Government officials as bursary recipients

The investigation found that during the 2019/2020 financial year, government officials received full-time bursaries to attend various universities. The Bursary Policy states that while officials can apply for part-time bursaries, they are not eligible for a full-time bursary.

Excessive stipend payments

Bursary recipients received stipends from the provincial government, with varying amounts for local and international students. However, our investigation uncovered that some students received excessive sums totalling R1.8 million. The OTP stated that it has started reclaiming funds from students who studied abroad and did not fulfil their bursary commitments. To prevent duplication, the SIU requested that the OTP proceed with the recovery and keep the SIU informed of progress and outcomes through the office of the former Director General.

Suspense account negligence and recovery of public funds

The investigation found that officials did not properly monitor excess funds in universities’ suspense accounts, leaving millions unused. The SIU tracked down and recovered R6.3 million from seven universities.

Furthermore, the SIU has signed 18 Acknowledgements of Debt totalling R1.9 million with individuals who received undue benefits from the bursary scheme. To date, a total of R283 571 has been received by the SIU through instalments

Disciplinary and criminal referrals

The SIU has 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 Free State bursary policy.

In addition, evidence indicating the commission of a criminal offence against seven individuals has been referred to the National Prosecuting Authority (NPA) for possible prosecution on charges including fraud, theft, and money laundering. These referrals are not symbolic. They represent the SIU’s unwavering commitment to accountability, ensuring that those who abused power face the full weight of the law.

Conclusion

The SIU’s investigation has exposed not just maladministration, but a moral failure, 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.

But through recoveries, disciplinary action, criminal referrals, and systemic reform, the SIU is reclaiming that trust. We are rebuilding the bridge between education and nation-building, between responsibility and justice.

The SIU will continue to pursue every cent, every official, and every act of misconduct until the bursary scheme once again stands for what it was meant to provide: hope, opportunity, and the power of education to build a nation.

As I close, I would like to thank the Premier and her office for working with the SIU’s team and for being available whenever we required documents or additional information. I would also like to thank the Auditor General for continuing to collaborate by referring the outcomes of their report to the SIU. I extend my gratitude to SIU members, who continue to work selflessly to ensure we deliver on our mandate. To South Africans, we serve with pride and joy as a token of our gratitude for your ongoing support.

I thank you!

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