Following concerns of widespread governance failures in the sector education and training authorities (Setas) and the lack of action on forensic reports, the Organisation Undoing Tax Abuse (Outa) has requested a meeting with newly appointed Minister of Higher Education and Training Buti Manamela, warning that there is a growing risk that public money continues to be spent without accountability.

President Cyril Ramaphosa announced Manamela’s appointment last week, after he fired Nobuhle Nkabane, who faces accusations of misleading Parliament.

Following Manamela’s appointment, Outa CEO Wayne Duvenage said the new Minister should kick off his tenure by urgently appointing new Seta board chairpersons with people that are free from political interference to ensure accountability.

Outa has, over several years, stressed deep-rooted maladministration, governance failures and corruption at multiple Setas and at the National Student Financial Aid Scheme (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,” explained Duvenage.

He noted that despite repeated adverse findings and qualified audits from the Auditor-General, the leadership at entities such as the Insurance Sector Education and Training Authority, the Construction Education and Training Authority (CETA), the Services Seta, the Education, Training and Development Seta, and the Media, Information and Communication Technologies Seta have 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,” he said.

Outa said it would submit its full CETA investigation report to the Portfolio Committee on Higher Education, to assist the committee with oversight.

The organisation found in its CETA report that bid files were left on the floor and tenders cancelled because specifications were changed. 

Duvenage claimed tenders were awarded to businesses that didn’t bid, while multiple investigations and a report were kept secret.

He alleged that staff were also suspended and removed for resisting corrupt or improper transactions and a whistleblower was charged, cleared and charged again.

“We’re calling for a frank conversation with Minister Manamela. It is time for a reset. The sector desperately needs transparent leadership, independent boards, and the political will to act on evidence that’s already been paid for,” he said.

Duvenage noted that the Setas would cost taxpayers R21-billion from skills development levies (SDLs) this year, noting that 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 SDL contributions, and the unemployed youth who are supposed to benefit,” he highlighted.

He believes the Seta model is failing, with wasted taxpayer money, and youth not receiving the support they need.

“We’re dealing with recycled leadership, dodgy tenders, and investigations that are hidden or ignored. That’s not oversight, that’s a cover-up,” he highlighted.

Duvenage stated that Outa investigations over recent years into the CETA, the Insurance Seta, the Services Seta, and Nsfas and other entities within the higher education and training sector, had found similar patterns of 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,” he said.

According to its CETA report, Outa revealed that the findings and recommendations of a costly forensic report and two legal opinions had not been implemented almost four years after it was finalised.

“It is further an absolute disgrace that an entity uses taxpayers’ money to appoint forensic investigators and legal specialists without acting on the findings of the investigations,” Duvenage pointed out.