The Special Investigating Unit (SIU) has opened a forensic inquiry into the Private Security Industry Regulatory Authority (Psira) after a R130 million training scandal left thousands of job‑seekers without the qualifications they were promised. The probe, authorised by President Cyril Ramaphosa, will examine alleged fraud, falsified records and possible misuse of Unemployment Insurance Fund (UIF) money, covering a period from January 2019 to June 2026.
The controversy erupted in June 2025 when a Sowetan exposé revealed that 6,507 young South Africans were recruited in 2019 to undertake security‑guard training funded by the UIF. Although the participants attended classes, they never received certificates and the training itself has been deemed invalid. Parliament’s Portfolio Committee on Policy subsequently called for the suspension of Psira’s director and chief financial officer, questioning how a regulatory body could oversee a programme that delivered no accredited outcomes.
The UIF‑Psira partnership was intended to upskill unemployed South Africans in security‑related disciplines and basic computer skills, thereby boosting employability in a sector that already employs roughly 270 000 people nationwide. However, an audit by the Auditor‑General uncovered that R30 million was paid upfront to Khunjulwa Managed Services (KMS) – a primary supplier – before any training commenced. The audit flagged that Psira, as a regulator rather than a service provider, lacked the legal authority to enter a commercial training contract with the UIF, prompting the referral to the SIU.
SIU investigation scope and key questions around the R130 million security training scandal
SIU spokesperson Selby Makgotho outlined the breadth of the forensic audit, noting that while the core focus is on activities between 2019 and 2026, the unit may also look at related dealings outside that window if they involve the same individuals, entities or contracts. The investigation will assess whether payments were fair, competitive, transparent, equitable and cost‑effective, and whether any officials were implicated in unlawful conduct, irregular spending or negligent loss of public funds.
| Aspect | Findings to Date | Potential SIU Focus |
|---|---|---|
| Funding amount | R130 million from UIF | Legitimacy and allocation of funds |
| Primary supplier | R30 million paid to KMS | Contractual authority and procurement process |
| Beneficiaries | 6 507 trainees recruited | Verification of enrolment and accreditation |
| Certification outcome | No certificates issued; training invalid | Cause of non‑accreditation and record falsification |
| Governance | Psira acted as regulator, not service provider | Legal authority to sign contracts with UIF |
The table highlights the glaring gaps that the SIU must address, from the initial disbursement of funds to the complete absence of recognised qualifications for the trainees. If the unit uncovers systematic misconduct, the fallout could reshape how public funds are allocated to skills‑development programmes across the country.
The fallout has already rippled through the private security sector, which contributes roughly 1 % to South Africa’s GDP and employs a significant portion of the informal workforce. Industry bodies fear that the scandal could erode public confidence and jeopardise future collaborations with government training schemes.
Stakeholders reacted swiftly. Psira’s interim CEO, Thandi Mthembu, told reporters that the authority “is fully committed to cooperating with the SIU and will provide all requested documentation.” The UIF’s acting director, Sipho Ndlovu, stressed that the fund “will conduct its own internal review to ensure that such misappropriations do not recur.” Meanwhile, the Department of Labour announced plans to tighten oversight of any future public‑private training arrangements.
For the 6 000+ trainees who remain uncertified, the human cost is stark. Many have already exhausted their UIF benefits and are left without the promised credentials that could have opened doors in the security industry. A spokesperson for the Unemployed South Africans Forum warned that the scandal “deepens the skills gap and pushes vulnerable youths further into the informal economy.”
The SIU’s mandate includes not only identifying any financial loss but also recommending reparatory measures for those affected. Potential outcomes could range from restitution payments to the establishment of a new, accredited training pathway overseen by an independent body.
As the investigation unfolds, South Africans will be watching closely how accountability is enforced in a sector that plays a critical role in everyday safety. The outcome will likely set a precedent for how government‑funded skills programmes are structured, monitored and delivered in the years ahead.