Urgent Action Demanded on SETA Corruption

The Organisation Undoing Tax Abuse (OUTA) notes the appointment of Buti Manamela as the new Minister of Higher Education, following the removal of Minister Nobuhle Nkabane. While Minister Manamela brings years of experience to the role, having served as a deputy minister in various portfolios since 2014, his long-standing presence within the Higher Education ministry raises serious concerns about continuity rather than change.

Given his proximity to the dysfunction and corruption that has plagued the Department of Higher Education and its entities – particularly the sector education and training authorities (SETAs) – for more than a decade, his appointment is not a welcome development for those demanding real reform and accountability.

We would have expected the President to not introduce a second Deputy Minister to Higher Education, as there is Mimmy Gondwe who is in place as the second deputy.

OUTA has, over several years, exposed deep-rooted maladministration, governance failures and corruption at multiple SETAs and at NSFAS. While there have been some positive developments – such as the appointments of Dr Karen Stander as NSFAS chairperson and Waseem Carrim as CEO – the SETAs remain mired in dysfunction, with little sign of meaningful intervention.

Despite repeated adverse findings and qualified audits from the Auditor-General, the leadership at entities like INSETA, CETA, Services SETA, ETDP SETA, and MICT SETA has remained intact. Executives implicated in mismanagement continue to draw large salaries and bonuses, while the essential mission of developing skills and improving employability is undermined. The SETAs cost business taxpayers R21 billion a year, but do not deliver value for money.

OUTA urges Minister Manamela to demonstrate a break from the past by acting swiftly and decisively to restore integrity and oversight across the SETA environment. This must begin with the urgent appointment of new SETA board chairpersons – individuals who are ethical, independent, and free from political interference – to ensure that executive management is properly held to account.

We acknowledge Minister Nkabane’s efforts to address governance issues at NSFAS, particularly the removal of key individuals linked to misconduct under the previous leadership of Andile Nongogo, Ernest Khosa, and former Minister Blade Nzimande. This kind of bold intervention is desperately needed across all SETAs.

OUTA will write to Minister Manamela requesting an urgent meeting to share the substantial evidence and insights we have gathered over the years on systemic corruption within the SETAs. We remain committed to assisting the ministry in cleaning up this vital sector – but that process cannot succeed without political will and genuine leadership.