The Special Investigating Unit is seeking to recover R8.3m linked to alleged corruption in the Free State government bursary scheme.
The scheme provides financial support to underprivileged students in the province and remains operational.
Acting SIU head Leonard Lekgetho said investigators uncovered serious irregularities in how bursaries were approved, extended and monitored between 2017 and 2023.
“The investigation revealed that officials approved bursaries negligently, failed to comply with the eligibility criteria, and irregularly extended bursary contracts,” Lekgetho said.
The probe implicated officials who served during the administrations of former Free State premiers Ace Magashule and Sisi Ntombela.
It also includes allegations that bursaries were awarded to foreign nationals and relatives of officials.
Deceased student received funding
One of the most concerning findings involved a deceased student who received funding through both the office of the premier and the National Student Financial Aid Scheme.
Lekgetho said the bursary scheme paid R34 000 to the University of the Free State. The university placed the money in a suspense account after the student’s death.
NSFAS also paid R13 000 into the student’s bank account. Lekgetho said the money was used by the student’s parents.
He said the funds could not be recovered because the student died before completing his studies, the proclamation did not cover NSFAS, and the parents did not have the means to repay the money.
The SIU has identified the officials who approved the bursary and its extension.
Foreign students funded
The investigation also found that seven foreign nationals received bursaries from the office of the premier.
Six were funded on merit as top-achieving students.
However, Lekgetho said there was no approval to deviate from the bursary policy, which states that bursaries are for South African citizens living in the Free State.
He said this resulted in expenditure of R576 734.48.
Universities repay millions
The SIU also found that officials failed to properly monitor excess funds held in university suspense accounts.
The unit has since traced and recovered R6.3m from seven universities.
Lekgetho said the SIU had signed 18 acknowledgements of debt worth R1.9m with people who received undue benefits from the scheme.
So far, R283 571 has been recovered through instalment payments.
The SIU has made 38 disciplinary referrals against implicated officials, including deputy directors and directors.
Seven individuals have also been referred to the National Prosecuting Authority for possible criminal prosecution.