Interventions implemented by the Higher Education and Training Department six months ago have restored governance and trust in three Sector Education and Training Authorities (SETAs), Minister Buti Manamela said on Tuesday.
Addressing the media on progress made by administrators appointed to stabilise three SETAs, the Minister reflected on his decision of 19 August 2025 to place the Construction Education and Training Authority (CETA), the Services Sector Education and Training Authority (Services SETA) and the Local Government Sector Education and Training Authority (LGSETA) under administration.
Manamela said the decision, announced less than a month after his appointment, was a necessary and decisive step to stabilise governance, restore institutional integrity, enforce consequence management, and protect the credibility of South Africa's skills development system.
“Six months later, the evidence is clear: the decision was not only justified, but essential,” Manamela said, noting that his report to the public comes against the backdrop of President Cyril Ramaphosa’s 2026 State of the Nation Address (SONA), which reaffirmed skills development as central to South Africa’s economic renewal.
The Minister detailed systemic governance failures at each institution that necessitated intervention.
CETA had accumulated four consecutive qualified audit opinions and overcommitted discretionary grant (DG) funds by R1.4 billion against an annual income of only R500 million, placing public funds at severe risk. The total commitments stood at R2.7 billion, while internal controls had collapsed, litigation exposure was rising, and labour relations were strained.
Services SETA had received seven consecutive qualified audit opinions, without consequence management over a seven-year period. Investigations uncovered systemic supply chain failures, a former CEO who failed to disclose his relationship with an awarded bidder, and a pattern of pre-payment for services before contracts commenced.
“Despite three major investigations, not a single official had been held accountable,” the Minister said.
LGSETA faced findings from a National Treasury forensic report confirming the irregular appointment of its Chief Executive Officer and the unlawful dissolution of its Audit and Risk Committee.
A criminal case was registered with the South African Police Service on 10 October 2025, while a protracted dispute with the Auditor-General, compounded by a cyberattack that corrupted financial records, creating a discrepancy exceeding R1.5 billion, had paralysed the institution's governance and audit readiness.
“In each case, administration was the appropriate and proportionate remedy under the Skills Development Act,” Manamela said.
Governance reform and recovery
Manamela said the administrators were given a clear mandate to “restore controls, strengthen financial and operational management, rebuild stakeholder trust, and re-anchor these institutions in their statutory responsibilities. Let me report on delivery against that mandate”.
At CETA, Administrator Oupa Nkoane implemented a four-phase recovery plan comprising 35 activities across 11 performance areas.
Of these, 23 have been fully achieved and 12 are in progress, and “not one has been abandoned.”
The Minister announced that a permanent Chief Financial Officer assumed duty on 2 March 2026, ending nearly two years of acting leadership.
“All key oversight committees, i.e. the Audit and Risk Committee, Clean Audit Task Team, EXCO and Extended EXCO, have been reconstituted and are operational. More than 20 internal audit findings in ICT have been resolved. Salary negotiations have been concluded, restoring workforce stability.
“Seven Skills Centre projects are underway across KwaZulu-Natal, the North West, the Northern Cape, and Western Cape, implemented in partnership with the Development Bank of Southern Africa as implementing agent. The institution's reputational recovery is tangible: social media reach expanded from 15 000 accounts in the entire previous calendar year, to over one million accounts between January and February 2026 alone — a 6.567% increase,” the Minister highlighted.
At Services SETA, Administrator Lehlogonolo Masoga reduced legacy commitments from R3.4 billion in March 2025 to R2.8 billion by January 2026.
A legal and accounting review classified 1 434 transactions, with many declared prescribed and eligible for cancellation. Notices totalling R2.3 billion were also issued through national platforms, with potential recoupment of up to R2.8 billion for reinvestment into discretionary grants.
An acting CA(SA)-qualified CFO was appointed in February, and no new irregular or wasteful expenditure has been recorded since administration began.
“For beneficiaries, the 20 000-internship programme, providing two-year workplace exposure with host employers, is operational. Furthermore, the Services SETA has entered into a three-year strategic partnership with Takealot to create 20 000 training and job opportunities for unemployed youth.
“A R1.3 billion bursary fund supports 10 000 TVET [Technical and Vocational Education and Training] College students and 5 000 university students. The SETA has settled outstanding bursary payments previously owed to universities and colleges, a failure that had directly harmed students. The Hawks and the Public Protector are conducting independent investigations into alleged fraud and corruption,” the Minister said.
At LGSETA, Administrator Zukile Mvalo prioritised the implementation of the forensic report. Disciplinary processes against the implicated CEO are underway, and a legal dispute with the Auditor-General has been resolved to restore governance stability.
The Labour Court ruled in favour of the Minister and LGSETA regarding the former CEO’s employment challenge.
Manamela said the progress demonstrates that decisive intervention can restore accountability and ensure that levy payers’ funds serve their intended purpose, equipping South Africans with skills to drive economic growth and social development. – SAnews.gov.za
