WATCH | SIU aims to recoup R8.3m from Free State bursary scheme fraud (original) (raw)

Story audio is generated using AI

The Special Investigating Unit (SIU) is seeking to recover R8.3m linked to systemic corruption in the Free State government bursary scheme.

The SIU disclosed that among the funds irregularly disbursed was R34,000 awarded to a deceased student through the office of the premier and further funds from the National Student Financial Aid Scheme (Nsfas).

At least 18 acknowledgements of debt totalling R1.9m with individuals who received undue benefits from the bursary scheme have been signed, the unit said.

The investigation into allegations of manipulated financial allocations implicated officials who served during the administrations of former Free State premiers Ace Magashule and Sisi Ntombela. The probe covers the period from 2017 to 2023. It includes allegations that bursaries were awarded to foreigners and relatives of officials.

Acting SIU head Leonard Lekgetho said serious irregularities were uncovered.

“The investigation revealed that officials approved bursaries negligently, failed to comply with the eligibility criteria, and irregularly extended bursary contracts,” he said.

The scheme, which is still operational, provides financial assistance to underprivileged students in the province.

ALSO READ | SIU freezes vehicles and properties linked to alleged R18m UIF Ters fraud

Lekgetho said one of the most concerning findings involved a deceased student who received funding from both the office of the premier and NSFAS.

“The scheme paid R34,000 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 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 repay the money,” he said.

Lekgetho added that the SIU had identified the officials who approved both the bursary and its extension. The investigation also found that seven foreigners received bursaries from the office of the premier. Six of them were funded on a merit basis as top-achieving students.

This was, however, contrary to the bursary policy, which is primarily intended for South African citizens residing in the Free State.

“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 expenditure of R576,734.48,” he said.

Lekgetho said the investigation further found that officials failed to properly monitor excess funds held in university suspense accounts. The SIU has since tracked down and recovered R6.3m from seven universities.

“The SIU has signed 18 acknowledgements of debt totalling R1.9m with individuals who received undue benefits from the bursary scheme. To date, a total of R283,571 has been received by the SIU through instalment payments,” he said.

The SIU has made 38 disciplinary referrals against implicated officials, including deputy directors and directors. A further seven individuals have been referred to the National Prosecuting Authority (NPA) for possible criminal prosecution.

Sowetan