Ramaphosa signs off on SIU probe into ‘failed’ R130m Psira project

A UIF-funded training programme failed to accredit more than 6,000 unemployed people

The SIU probe is expected to target alleged widespread fraud and falsified records by the Private Security Industry Regulatory Authority. (Special Investigative Unit)

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The Special Investigating Unit (SIU) has officially launched a forensic probe into the Private Security Industry Regulatory Authority (Psira) after an explosive R130m training scandal.

The investigation is expected to target alleged widespread fraud and falsified records, and a multi-year project that left more than 6,000 unemployed South Africans without their promised qualifications.

The proclamation was signed by President Cyril Ramaphosa on Wednesday to probe allegations of maladministration, improper conduct and possible financial loss by Psira and the Unemployment Insurance Fund (UIF).

In June 2025, Sowetan reported how 6,507 young South Africans were recruited in 2019 by Psira to undergo training to become security guards after getting R130m in funding from the UIF.

Though they received training, they were never issued with certificates. Their training was also considered invalid.

Parliament’s portfolio committee on policy later called for the suspension of the director and CFO of Psira following the disclosures.

This was after the training authority appeared before the committee to report on the programme but was unable to account for why more than 6,000 people were not accredited.

ALSO READ | ‘R130m security training was a waste of time’

The UIF training project was meant to upskill unemployed individuals in security-related fields as well as computer skills to improve their employability.

In November, the auditor-general exposed that R30m was paid upfront to a primary supplier, Khunjulwa Managed Services (KMS), before any training began.

The auditor-general flagged that Psira, as a regulatory body rather than a service provider, had no legal authority to enter into such a commercial training contract with the UIF in the first place.

The matter was later referred to the SIU for further investigation.

SIU spokesperson Selby Makgotho said the investigation covers conduct from January 2019 to June 2026.

“But it may also include related matters outside that period if they involve the same people, entities or contracts.

“The probe will seek to establish whether the payments were fair, competitive, transparent, equitable and cost-effective, and whether officials or employees were involved in unlawful conduct, irregular spending, or intentional or negligent losses of public funds,” Makgotho said.

Sowetan


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