SETA Admits to R638 Million Financial Misconduct

Statement by Karabo Khakhau MP – DA Deputy Spokesperson on Higher Education and Training:

The Democratic Alliance (DA) demands that the Minister of Higher Education and Training, Mr Manamela, dismiss the entire financial division of the embattled Education, Training and Development Practices Sector Education and Training Authority (ETDP SETA) for its failure to account for R638 million spent on discretionary grants.

During today’s Portfolio Committee meeting, the Auditor-General of South Africa (AGSA) confirmed that it has not received any supporting documentation from the ETDP SETA to verify the expenditure of R638 million in South African taxpayers’ money.

The AGSA’s previous report found the following five key performance issues at the ETDP SETA:

1. Missing and incomplete financial records over R637 million.
2. No audit evidence supporting discretionary grant payments.
3. Material misstatements in financial reports.
4. Poor or collapsed internal controls.
5. Failure of the Accounting Authority to exercise oversight.

Furthermore, the ETDP SETA Finance Manager informed Parliament that it failed to maintain accurate and complete records of its expenditures. Its Finance Department was unable to provide proper accounting books, and the audit committee failed to flag risks. This clearly signifies an admission of guilt.

Its entire financial division and internal audit committee are compromised and have breached 13 provisions of the Public Finance Management Act (PFMA), including maintaining effective, efficient and transparent systems of financial and risk management and internal control, and preventing unauthorised, irregular, fruitless and wasteful expenditure and losses resulting from criminal conduct.

All these breaches constitute criminal offences. The writing is on the wall. Minister Manamela must disband the entire financial division of the ETDP SETA.