By Thapelo Molefe
The Media, Information and Communications Technology Sector Education and Training Authority (MICT SETA) is under intense parliamentary scrutiny following the release of a Special Investigating Unit (SIU) report on irregular discretionary grant allocations between 2014 and 2018.
The Portfolio Committee on Higher Education and Training has demanded urgent clarity on how the SETA is implementing the report’s recommendations and ensuring financial accountability.
The SETA appeared before the committee to present a report on its governance, financial performance and strategic initiatives for 2020 to 2025.
The public entity is facing concerns over its board vacancies and governance efficiency.
While its accounting authority consists of 13 members, two vacancies remain unfilled, raising questions about its decision-making capacity and representation.
The vacancies have been reported to Higher Education and Training Minister Nobuhle Nkabane.
The SETA operates with six committees, including the audit and risk committee and the executive committee, but the frequency and necessity of some meetings are now under review due to cost concerns.
“In line with the approved annual governance calendar, the board and its committees meet on a quarterly basis except for Exco, which meets monthly in line with the approved constitution,” reads a report from MICT.
However, the portfolio committee is urging a review to cut costs.
Its financial stability has been notable, with revenue exceeding R1 billion annually since 2020. However, scrutiny has intensified over the board’s expenditure, particularly regarding chairperson fees and travel costs.
In the 2023/24 financial year, chairperson Simphiwe Thobela’s expenses totalled R1.6 million, with R62,000 allocated to board fees and R1.051 million to travel and accommodation.
“The travel and accommodation expense of the chairperson is attributed to the fact that he resides outside Gauteng and travels from Kokstad, which is south-west of Durban and Flagstaff in the Eastern Cape, to attend MICT SETA meetings and engagements,” the report stated.
However, the committee raised concerns over the necessity of such high costs.
It also questioned fruitless and wasteful expenditure, despite the MICT SETA reporting no irregular expenditure for the period. The Supply Chain Management (SCM) department, praised for its 99% compliance rate, will now face additional oversight.
“Over 98% of the SCM spend contributes towards historically disadvantaged SMMEs,” the SETA emphasised, pointing to its commitment to transformation.
While it achieved a Level 5 risk maturity assessment from the National Treasury, an independent investigation into misconduct allegations has highlighted internal governance tensions.
“During the period under review, a misconduct allegation was made to the Chief Executive Officer. Subsequently, the board chairperson informed the minister and the board,” the presentation revealed.
Additionally, the SIU conducted a probe into discretionary grant allocations between 2014 and 2018, with the final report submitted to the Presidency in 2024.
“A report on the steps taken by MICT SETA in implementing the recommendations was submitted to the Presidency and the office of the minister on 27 January 2025,” the report confirmed.
MICT has invested R1.6 billion in bursaries, learnerships and internships, benefiting over 44,000 unemployed learners, with a focus on women and rural communities.
“More than 60% of these learners were women, totalling over 26,875 individuals,” the report highlighted.
Despite these achievements, concerns remain over the effectiveness of its programmes, as the Tracer Study revealed that only 51% of graduates secured employment.
“93% of learners who were unemployed before starting MICT SETA learning programmes gained practical experience during the training, and 51% of those learners obtained employment after the programmes,” it reads.
In MICT’s digital strategy, which includes its integrated learner management system (ILMS), the SETA aims to streamline operations and enhance reporting.
“The ILMS is the first step in developing the shared services model which will be piloted within the SETA landscape prior to rolling it out into the post-school education and training sector,” the presentation stated.
While the initiative has received positive feedback, its expansion to other SETAs under a shared services model raises concerns over feasibility and cost-effectiveness.
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