Chaotic SETAs

OUTA’s investigations into SETAs raise concerns over lack of value for both taxpayers and unemployed youth.

Bid files left on the floor. Tenders cancelled because specifications were changed. Tenders awarded to businesses that didn’t bid. Multiple investigations and a report kept secret. Staff suspended and removed for resisting corrupt or improper transactions. Staff too afraid to speak up. A whistleblower charged, cleared and charged again.

This is what OUTA found at the Construction Education and Training Authority (CETA). But it’s not an isolated case.

South Africa’s sector education and training authorities (SETAs) will cost taxpayers R21 billion from Skills Development Levies (SDL) this year. These entities are meant to equip young South Africans with critical skills, but many suffer from gross maladministration, are gripped by chaos, poor leadership and a blatant failure to serve the young people who rely on them. Serious questions arise from the taxpayers who fund these SETAs about the value obtained from their skills development levy contributions, and the unemployed youth who are supposed to benefit.

“It would appear that South Africa’s SETA model is failing and its institutions are bleeding taxpayer money, while the youth they are supposed to serve are left stranded. We’re dealing with recycled leadership, dodgy tenders, and investigations that are hidden or ignored. That’s not oversight, that’s a cover-up,” says Wayne Duvenage, OUTA’s CEO.

OUTA investigations over recent years into the CETA, the Insurance SETA (INSETA), the Services SETA and the National Student Financial Aid Scheme (NSFAS) and other entities within higher education and training sector have found similar patterns: manipulated procurement; over-priced contracts; failed delivery of services; the movement between entities of key individuals linked to dubious procurement; investigations that go nowhere; and a frightening lack of accountability. All of these entities fall under the Ministry of Higher Education and Training, which has now had three different ministers in the past 14 months.

Having recently met with the previous minister – Nobuhle Nkabane – to express its concerns, OUTA has now requested a meeting with the newly appointed Minister of Higher Education and Training, Buti Manamela, to once again raise these and new concerns over the state of these crucial institutions. OUTA is particularly concerned over the lack of action following expensive forensic investigations previously carried out, and wants to emphasise the need for strong, independent boards and executive managers for these entities.