Former top Free State officials investigated state grants

Directors, deputy directors, seven foreign students, a former prime minister and a prime minister’s personal assistant are among those involved in the looting of the Free State Government Scholarship Scheme.

Between 2017 and 2023, at least R8.3 million was misused by awarding the Prime Minister’s Office grant to undeserving individuals. Tuesday has the Special investigation unit (SIU) said it was seeking to recover R8.3 million linked to the systemic corruption in the scheme.

The SIU disclosed that among the irregularly paid funds was R34,000 awarded to a deceased student and further funds from the National Student Financial Aid Scheme (NSFAS).

At least 18 promissory notes totaling R1.9 million have been signed with individuals who received undue benefits from the grant scheme, the unit said.

The investigation into allegations of manipulated financial allocations involved officials who served during the governments of former Free State premiers Ace Magashule and Sisi Ntombela.

The scholarship is aimed at South African citizens from households earning less than R600,000 per year and living in the Free State. It excludes government employees.

The SIU said it was investigating allegations that Ntombela could have benefited along with Magashule’s former personal assistant, Moroadi Cholota.

The investigation includes allegations that grants have been awarded to foreigners and relatives of officials.

Acting SIU head Leonard Lekgetho said serious irregularities had been uncovered.

“The investigation found that officials negligently approved scholarships, failed to meet eligibility criteria and irregularly renewed scholarship contracts,” he said.

Lekgetho said one of the most worrying findings involved a deceased student who received funding from both the Prime Minister’s Office 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 money could not be recovered, especially since the proclamation did not cover NSFAS. The parents also do not have the means to repay the money,” Lekgetho said.

He added that the SIU had identified the officials who had approved both the grant and its renewal. The investigation also revealed that seven foreigners received scholarships from the Prime Minister’s Office. Six of them were funded on merit as top-performing students.

However, this was contrary to the stock exchange policy.

“The SIU found no approval to deviate from the grant policy… This resulted in an expenditure of R576,734.48,” Lekgetho said.

He said the investigation further revealed that officials have failed to properly monitor excess funds in suspense accounts of universities. The SIU has since traced and recovered R6.3 million from seven universities.

“The SIU has signed 18 promissory notes totaling R1.9 million to individuals who received unlawful benefits from the bursary programme. To date, a total of R283,571 has been received by the SIU through installment payments,” he said.

The SIU has made 38 disciplinary referrals against officers involved, including deputy directors and directors. Another seven individuals have been referred to the National Prosecution Service for possible criminal charges.

Sowetan

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