By Thapelo Molefe
MPs have expressed their concerns over the continued poor performances of Sector Education and Training Authorities (SETAs).
“How many SETAs actually received unqualified audits, and is this an isolated issue, or a systemic problem across the board?” a member the Standing Committee on Public Accounts asked on Wednesday.
The committee was briefed on the performance of the Construction Education and Training Authority (CETA) and the Energy and Water Sector Education and Training Authority (EWSETA) by the Higher Education and Training Department.
The briefing focused on oversight and audit outcomes for various SETAs, highlighting concerns regarding governance, financial management and performance.
According to the Auditor-General’s office, 14 SETAs had unqualified audits, including CETA, EWSETA, and INSETA who were repeat offenders, struggling to meet financial and governance requirements.
CETA has been grappling with governance and financial management challenges, as evidenced by three consecutive years of qualified audit outcomes (2022–2024).
While its performance against Annual Performance Plans has improved since the existing administration, the authority has struggled to meet its Service Level Agreement targets with the department, recording below 50%.
“The CETA’s performance against its Annual Performance Plans has been improving, but the performance against the Service Level Agreement signed with the DHET remained below 50% for three consecutive years. This is a cause for concern,” the department stated.
Concerns were also raised over the CETA’s handling of supply chain management and discretionary grants.
A committee member pressed: “Why has supply chain management remained a critical failure point? Have there been any suspensions or actions taken against responsible officials?”
“Three SCM officials were suspended, one was dismissed, one reinstated and another case is still pending before the CCMA,” CETA CEO Malusi Shezi responded.
The SETA has, however, taken steps to address its shortcomings.
Research studies have been commissioned to assess the impact of its programmes, and a tracer study has been conducted to track the beneficiaries of CETA-funded learning programmes.
“The SETA conducted a tracer study of all current and previous beneficiaries of CETA-funded learning programmes to measure the effectiveness of our interventions,” the department noted.
According to a presentation aimed at enhancing CETA’s financial and operational practices, it has decided benchmark itself against the Mining Qualifications Authority, which has a consistent track record of clean audit outcomes.
Despite being one of the smaller SETAs in terms of budget, EWSETA plays a crucial role in two key sub-sectors – energy and water – both of which are critical to economic growth and national stability.
It maintained an unqualified audit outcome for four consecutive years, but suffered a setback in 2023-24 when it received a qualified audit outcome.
Key concerns highlighted by the Auditor-General include improper accounting for discretionary grants and inaccurate financial disclosures.
“The public entity did not correctly account for all items in the commitment’s disclosure note, in accordance with GRAP 1 Presentation of Financial Statements,” stated the Auditor-General’s report.
Higher Education and Training Minister Nobuhle Nkabane is set to announce a new board for EWSETA, with a focus on ensuring that appointed members possess the necessary skills and ethical standards.
Additionally, the National Skills Authority (NSA) is introducing a new governance indicator framework and enforcing stricter oversight measures, including mandatory registration of board members with the Institute of Directors of South Africa.
As part of its turnaround strategy, EWSETA will be paired with AgriSETA, which has consistently achieved clean audits, to improve its financial and operational practices.
“For benchmarking of leading practices and improvements, EWSETA has elected to be paired with AgriSETA, which has for consecutive years attained clean audit outcomes,” the presentation highlighted.
Both CETA and EWSETA are under increased scrutiny as the government seeks to improve oversight, financial accountability and programme effectiveness within the SETA system.
The NSA has been tasked with strengthening regulatory frameworks, enforcing stricter governance standards and ensuring that SETAs conduct independent board evaluations.
The department emphasised that the NSA was preparing recommendations for the minister to enhance governance and performance across SETAs, including strengthening the regulatory framework to improve accountability and transparency.
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