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R42m in youth bursary debt written off
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Pretoria - The North West Provincial Government has announced that it will write off over R42 million for the benefit of young people from poor and disadvantaged backgrounds who had studied through the Office of the Premier Bursary Scheme.

The decision to release all defaulters, including those who had started repaying their study loans, was taken at a meeting of the Executive Council in Mahikeng on Wednesday.

Premier Thandi Modise said in a statement: “Taking this decision on the eve of 37th anniversary of June 16 should demonstrate our commitment to develop scarce skills, empower our young people and prepare them for the critical roles they have to play in the future.

“We hope that it would bring much relief to the 469 beneficiaries particularly to those that had defaulted on repayments because they could not find employment.”

Modise said the Exco had decided that all defaulters who had started repaying the state from 1 March 2012 will be refunded.

“The current bursary debt will be written off unless there is proof of declined employment offer by bursary beneficiaries. Our communities and South Africa should benefit from the skills which we have contributed as a province,” she said.

Modise added that the decision by Exco to review of the Provincial Bursary Policy was in line with President Jacob Zuma’s directive that young people should be relieved of the burden of student debts and was primarily necessitated by the Auditor General regarding the inability of bursary holders to repay as a breach of contract even though there were no employment offers by provincial departments resulting in the Office of the Premier being disqualified during audit processes.

As from this 1 April 2014/14, provincial departments will budget and administer their bursary programmes. – SAnews.gov.za
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