The Department of Higher Education and Training (DHET) says it is continuing to engage with the Auditor-General of South Africa (AGSA) on matters relating to the appointment of accounting authority members at Sector Education and Training Authorities (SETAs).
In a statement on Wednesday, the department said the audit process on the matters raised by the Auditor-General has not yet concluded, and that it is providing detailed explanations and clarifications as part of the ongoing engagement.
“The matters currently being reported should not be understood as the Auditor-General's final audit conclusions. They remain subject to ongoing engagement between the department and AGSA, and the department does not wish to preempt the outcome of that process or legitimise allegations that have not yet been finally determined,” the DHET said.
A key issue under discussion is the legislative and policy framework governing SETA appointments.
The department noted that it has been implementing the policy framework as it currently stands, and that where the existing framework does not prescribe a particular requirement or process, this cannot be regarded as non-compliance.
“[It is] important to distinguish between non-compliance with an existing legislative requirement and an identified gap or opportunity to improve the legislative and governance framework.”
However, the department acknowledged that aspects of the current legislative and policy framework can be strengthened and clarified.
As part of this process, the DHET is undertaking a broader legislative review, including amendments aimed at strengthening governance, accountability, transparency, and oversight across the SETA system. The review aims to ensure that legislative requirements are clear, practical, and capable of consistent implementation.
In addition, the department has also engaged AGSA on the selection and appointment of candidates to SETA Accounting Authorities.
In a competitive process, the department said more candidates can meet the applicable eligibility requirements than there are available positions, and that the non-selection of an eligible candidate does not, on its own, demonstrate unfair exclusion or an irregular appointment process.
According to the department, it considered candidates recommended for appointment against the eligibility requirements in the Skills Development Act, 1998 (Act 97 of 1998), and the applicable policy framework.
“Where the review identifies opportunities to improve record-keeping, procedural clarity or the documentation of decisions, these will be addressed as part of the department's ongoing governance improvement programme.”
The department said any opportunities identified to improve record-keeping, procedural clarity or the documentation of decisions will be addressed through its ongoing governance improvement programme.
It also acknowledged the importance of completing appropriate verification and due-diligence processes for appointments. Appointment letters issued to accounting authority members include conditions requiring the completion of criminal-record checks and qualification verification.
The DHET will continue examining individual cases raised during the audit process and take appropriate action if an actual deviation from an applicable legal or governance requirement is ultimately established.
The department further noted questions concerning the qualifications of some accounting authority members, saying the Skills Development Act does not prescribe a specific qualification level, including NQF Level 7, as a statutory prerequisite for appointment to a SETA Accounting Authority.
“It is nevertheless desirable that Accounting Authorities collectively possess the qualifications, knowledge, expertise and leadership experience necessary to provide effective strategic oversight and governance,” the department said.
The department said it will continue reconciling the matters raised by AGSA against the specific legislative requirements, SETAs and appointments concerned to ensure that conclusions on compliance are based on applicable law and verified evidence.
It said the issues raised were, in its assessment, primarily related to processes, documentation and opportunities for improvement rather than evidence of material failures in the functioning of the SETA governance system.
Nonetheless, the department said it takes every governance concern seriously and will continue cooperating with AGSA.
“Should the completed audit process establish instances of non-compliance with applicable requirements, misconduct, negligence or other wrongdoing, the relevant circumstances and responsibilities will be assessed, and appropriate corrective measures will be pursued in accordance with legislation, policy and due process.
“The department remains committed to ensuring that SETAs operate within a governance framework that promotes integrity, transparency, accountability, compliance and effective stewardship of public resources,” the department said. – SAnews.gov.za
