SIU Uncovers Maladministration in Free State Bursary Scheme

Posted 02 June 2026 Written by Acts Online
Category Compliance

Brought to you by SAnews: In terms of Proclamation 123 of 2023, issued under the Special Investigating Units and Special Tribunals Act, No. 74 of 1996, the Special Investigating Unit (SIU) has uncovered extensive maladministration, policy non-compliance, and irregular expenditure within the Free State Office of the Premier’s bursary scheme.

The investigation, initiated following a referral from the Auditor-General of South Africa (AGSA) regarding audit reports from 2019 and 2020, revealed that officials approved bursaries negligently, failed to comply with eligibility criteria, and irregularly extended bursary contracts. The irregular activities occurred during the tenure of former Premier Ace Magashule.

Key findings of the SIU investigation include:

  • Financial Impact: A total expenditure of R8.3 million was incurred, benefiting 161 students and 16 officials from various government departments.
  • Policy Deviations: The irregular award of bursaries to seven foreign nationals resulted in an unauthorized expenditure of R576,734.48, violating provincial policy restricting funding to South African citizens residing in the Free State.
  • Workplace Skills Plan Non-compliance: Bursaries were awarded to applicants for qualifications not listed in the 2018–19 Provincial Workplace Skills Plan.
  • Nepotism and Inefficiency: Officials awarded bursaries to relatives without following due process, and in one instance, a three-year degree program was funded for seven years.
  • Double-funding and Deceased Student Payments: The Office of the Premier paid R34,891.60 to the University of the Free State for a deceased student, while the National Student Financial Aid Scheme (NSFAS) paid R13,000 into the same student’s bank account.

As a consequence of these findings, the SIU has made 38 disciplinary referrals against implicated officials, including human resources personnel, administration clerks, assistant directors, deputy directors, and directors. Additionally, the unit has secured 18 acknowledgements of debt totalling R1.9 million from individuals who received undue benefits.

What this means for you, your business, or your clients

  • For yourself: No direct individual obligations; however, professional advisors must note the increasing reliance on AGSA referrals and SIU proclamations as mechanisms for enforcing public sector accountability.
  • For your business: Firms providing advisory, auditing, or forensic services to public sector entities must ensure that client bursary schemes and training spend align strictly with approved Workplace Skills Plans and internal policy criteria to avoid irregular expenditure findings.
  • For your clients: Public sector clients and entities receiving state-funded training grants must review their internal control frameworks, eligibility verification processes, and policy deviation approvals to mitigate the risk of SIU investigations and subsequent disciplinary or recovery actions.

Originally published at https://www.sanews.gov.za/south-africa/siu-uncovers-maladministration-awarding-free-state-bursaries

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