The CEO of the Insurance Sector Education and Training Authority (Inseta), Gugu Mkhize, has been placed on precautionary suspension amid a scandal involving delayed bursary payments that left hundreds of students without financial support for months. The issue centers on Inseta’s multimillion-rand tertiary education bursary scheme, which was meant to cover tuition, accommodation, meals, data allowances and other essential needs for students preparing for careers in the insurance sector.
According to reports confirmed by the Sunday Times, 879 vulnerable beneficiaries were affected by the payment failures, including first-year students studying far from home. Many were said to be at risk of eviction from private accommodation, food insecurity and possible academic exclusion because the funds did not reach them, their universities or their landlords. Inseta had reportedly paid nearly R70 million in March to a middleman service provider, Mabophe Business Solutions, but the money was not passed on to the students or institutions in time.
The situation forced Inseta to make an emergency direct payment of R4.6 million during the week of May 21 to prevent students from being removed from residences. Internal reports compiled for the board indicated that the authority also had to step in to pay landlords and institutions directly in order to speed up essential services such as meal arrangements, data support and accommodation fees. One report said teams were carrying out physical site visits to five major universities from May 26 to introduce an interim manual payment system, while a formal assessment report on ISSF beneficiaries was expected to be completed by June 15.
The bursary programme, known as the Insurance Sector Student Fund, was designed by Inseta to support young people entering the insurance industry through higher education and training. It covers two main groups: 461 registered public learners and 418 students funded through co-funders and higher education institutions at major public universities, including the University of Cape Town and North West University.
Mkhize’s suspension also comes during an independent forensic investigation into alleged governance irregularities linked to her re-employment late last year. Previous reporting alleged that her contract extension was arranged privately and involved a breach of internal controls, which the auditor-general later classified as irregular. Inseta said the suspension is only a precautionary and procedural step, not a finding of wrongdoing.
Inseta has blamed the payment delays on a prolonged reconciliation process between itself and the service provider. The authority said it regrets the hardship caused to learners and acknowledged the serious distress experienced by affected students. Mabophe director and CEO Ndabe Mdlopane rejected claims that his company failed to perform, calling them false and malicious, but said confidentiality rules prevented him from sharing further details. The controversy has raised fresh concerns about governance, accountability and the protection of vulnerable students dependent on public bursary funding.
