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Manamela defends SETA interventions as R2.8bn recovery drive gains momentum

By Thapelo Molefe

Higher Education and Training Minister Buti Manamela says decisive interventions at three troubled Sector Education and Training Authorities have begun restoring governance and unlocking billions in mismanaged funds, six months after the SETAs were placed under administration.

Higher Education and Training Minister Buti Manamela. Photo: Eddie Mtsweni

Addressing a media briefing on Tuesday, Manamela reported progress at the Construction Education and Training Authority (CETA), the Services Sector Education and Training Authority (SSETA), and the Local Government Sector Education and Training Authority (LGSETA), which were placed under administration on 19 August 2025, less than a month after his appointment.

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He said the move followed systemic governance failures, including repeated qualified audit opinions, irregular appointments, ballooning financial commitments and alleged corruption.

“At Services SETA we have recouped about R600 million and started a process to recoup the additional R2.8 billion. That is money which will go back into training,” Manamela said.

The entity, which had received seven consecutive qualified audit opinions, is also under investigation by the Hawks and the Public Protector over alleged fraud and corruption.

An acting chief financial officer with a CA qualification was appointed in February, and the minister said no new irregular or wasteful expenditure has been recorded since administration began.

“This is money that belongs to levy payers and must serve learners,” he said.

A 20,000-internship programme and a R1.3 billion bursary scheme supporting 15,000 TVET and university students are currently underway.

The SETA has also entered a three-year partnership with Takealot to create 20,000 training and job opportunities for unemployed youth.

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At the Construction SETA, administrator Oupa Nkoane has implemented a four-phase recovery plan, with 23 of 35 activities completed. A new chief financial officer started work on 2 March, ending nearly two years of acting financial leadership.

The SETA had accumulated four consecutive qualified audits and overcommitted discretionary grants by R1.4 billion against an annual income of R500 million.

“We have wiped off almost a billion rand of commitments from previous financial years that we consider invalid and non-responsive so that we can redirect that money for a proper cause,” Nkoane said.

He added that 10 officials are facing disciplinary processes, with at least three cases potentially resulting in dismissal, while six investigations linked to Auditor-General findings are under way.

“At LGSETA, part of the actions were to discipline the former CEO and to open criminal cases against former board members who participated in the irregular appointment,” administrator Zukile Mvalo said.

The LGSETA is implementing recommendations from a National Treasury forensic report that found the irregular appointment of its chief executive officer and the unlawful dissolution of its audit and risk committee. A criminal case has been opened with the Hawks, while the Public Protector is conducting a sector-wide probe.

Mvalo said 14,400 beneficiaries were enrolled in learning programmes by 31 December 2025, 58% of whom are unemployed youth. Revenue for the third quarter stood at just over R900 million, with expenditure of about R690 million.

In a related intervention, Manamela announced the appointment of Dr Robert Nkuna as administrator of the College of Cape Town following findings of governance collapse, irregular appointments and procurement breaches. The college council will be dissolved, and Nkuna will serve for up to two years.

“These institutions have been established to serve our communities and cannot become personal fiefdoms of individuals,” Manamela said.

“Where there was instability six months ago, governance has been restored,” he added, noting that new accounting authorities would be appointed before administration ends in August.

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