The Special Investigating Unit raided PSIRA’s Centurion offices on 22 September 2026 in connection with a R130 million training contract irregularity involving the UIF. Image : Lopang Alamu

The Special Investigating Unit raids PSIRA head offices in Centurion on Tuesday 22 September 2026, executing a search and seizure warrant in connection with a R130 million training contract investigation. The Hawks assisted with the operation. The probe centres on a contract between the Private Security Industry Regulatory Authority and the Unemployment Insurance Fund, under which PSIRA was meant to train 7,071 security guards across all nine provinces.

The contract covered three services. These were end-to-end user computing training, Grade E to Grade C security training, and election observer training. The programme targeted unemployed security guards who had contributed to the UIF. It aimed to upgrade their qualifications and improve their employment prospects. Organisers also promised participants R50 daily stipends and computer hardware.

However, the programme collapsed badly. Of the 6,507 security guards enrolled, only 118 received certificates. That is a completion rate of less than 2%. A forensic review by SimDar Consulting found that the service provider received R30 million before delivering any training. Between R130 million and R144 million in public funds remains unaccounted for, with nothing recovered to date. “The training, in many cases, simply did not happen,” the investigation found.

SIU Forced to Use Search Warrant After PSIRA Refused to Cooperate

Furthermore, PSIRA refused to hand over a full year’s worth of documents the SIU requested during the initial investigation. The unit turned to a search and seizure warrant only after the organisation blocked full cooperation through standard engagement. SIU spokesperson Selby Makgotho explained the decision. “The SIU uses search and seizure as a last resort to obtain information to assist with an investigation, after failing to secure full co-operation through cordial engagement,” he said.

In addition, President Cyril Ramaphosa formally authorised the investigation by signing Proclamation 316 on 3 June 2026. Parliament’s Portfolio Committee on Police went further, calling for the suspension of PSIRA’s director and chief financial officer. The Special Investigating Unit confirmed it will refer any evidence of criminal conduct to the National Prosecuting Authority for prosecution.

As a result, the raid signals a major escalation in the state’s effort to recover public funds. South Africans reacted with anger when news of the contract failures spread. Security guards who paid into the UIF received nothing in return. The funds were meant to lift workers out of unemployment. Instead, the money appears to have largely disappeared.

Consequently, the PSIRA scandal adds to a growing list of UIF-linked contract failures drawing public and parliamentary scrutiny. Investigators are now working through the documents from Tuesday’s raid to build a full picture of how the money moved and who authorised the payments. Further developments are expected as the SIU processes the evidence it gathered.

Read also: SIU Exposes R181 Million Visa Corruption Scheme Inside Home Affairs as Over 2000 Study Visas Cancelled

By L Mabaso

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