Edwin Naidu
One of the country’s leading training institutions, the Graduate Institute of Financial Sciences (GIFS), claims it has been victimised because it blew the whistle on alleged corruption at the Insurance Sector Education and Training Authority (INSETA).
GIFS won a court judgment in December ordering INSETA to reinstate GIFS’ full certification within 24 hours; withdraw all unlawful notifications it had distributed to industry stakeholders informing them of GIFS’ de-accreditation; reassure the public on its website and via email of the complete restoration of GIFS’ accreditation and pay the costs of GIFS’ legal counsel. INSETA has ignored the court order.
While INSETA fights a provider which works with top skills levy-paying South African companies, hundreds of students have not received their accreditation, leaving them in limbo, unable to work in the sector.
In its urgent High Court interdict on January 4, GIFS’ legal counsel accused INSETA of corporate bullying and victimisation. They argued that the withdrawal of GIFS’ accreditation was based on a GIFS fraud investigation report compiled just over two years ago, now under review in the courts. GIFS maintains the report is fraught with trumped-up allegations, overt bias, glaring irregularities and multiple procedural flaws. It has only held off on its legal review as INSETA renewed its accreditation after the report was finalised in 2021.
GIFS gas asked the Public Protector for assistance in resolving the impasse, citing concerns centre around key personnel changes, potential conflicts of interest, and apparent irregularities in tender processes, which have raised serious questions about the organization’s adherence to ethical and legal standards.
“We have encountered persistent inefficiencies and incompetence on the part of INSETA, specifically in the issuance of certificates for learners. GIFS has repeatedly brought to INSETA’s attention the inaccuracies in certificates and instances of certificates being issued to learners who do not qualify.”
INSETA has been accused of issuing certificates to learners who do not meet the necessary qualifications, not only compromising the quality and integrity of the education system but also raises serious questions about INSETA’s commitment to upholding industry standards.
“Despite our continuous efforts to address this issue, there has been no response or corrective action from INSETA.”
Instead of addressing the issues at hand, INSETA has chosen to victimize GIFS, creating an environment that stifles legitimate concerns.
In light of INSETA’s mandate to enhance skills and generate employment, the current predicament reveals a concerning backlog of 5500 learners within the system. This backlog, according to GIFS, not only places the employment opportunities for these learners in jeopardy but also exposes employers to potential compliance risks.
“There is a prevailing concern that INSETA may not have the intention to disburse the funds owed to employers for the learners, potentially attributing the delay to administrative issues. This situation raises serious questions about the fulfilment of INSETA’s core objectives and the safeguarding of the interests of both learners and employers within the framework of its mandate,” claimed GIFS.
Furthermore, GIFS called for specific entities such as QI Solutions, Milumbe Consulting CC and Octomate to be thoroughly investigated for their involvement in irregularities, especially in relation to ghost learners and collusion of tenders.
Senior managers at INSETA have raised concerns about the tender processes and the awarding of an IT contract to QI Solutions, asserting that it was unsuitable and incompatible with the sector. They advocated for the removal of the provider on grounds of non-performance and, as a result, have faced victimization.
These officials forewarned of the potential decline of the sector. The unjust allocation of tenders to unqualified providers has become evident in the day-to-day operations of the insurance sector, where Skills Development Providers (SDP) witness individuals who do not meet the qualification criteria obtaining certificates, nonetheless.
Similar to the repercussions faced by employees who spoke out, comparable actions have been taken against Skills Development Providers to stifle their voices and dissent. Tenders are being awarded to entities beyond the insurance sector, exacerbating the disadvantage faced by South African youth in securing meaningful opportunities and consequently widening the unemployment gap.
“INSETA, through its actions or lack thereof, is falling short of its mandated responsibilities. Moreover, the organization is misappropriating public funds designated for skills development to initiate and finance legal actions against its own employees and other stakeholders, including an SMME like GIFS.”
INSETA CEO Gugu Mkhize confirmed that the Graduate Institute of Financial Sciences (GIFS) has been de-accredited effective as of 14 December 2023. This was following an appeal ruling made by the Quality Council for Trades and Occupations (QCTO).
“We are aware of the correspondence received from the Office of the Public Protector. At this time, we would like to inform you that the issue in question is currently being handled internally.
“We understand the importance of transparency and accountability, and we are committed to addressing any concerns in a thorough and timely manner. As the INSETA, our primary focus is on resolving matters efficiently and ensuring that we maintain a fair and impartial process.
“We recognise the value of open communication with the public and the media, and we will provide updates as appropriate, keeping in mind the confidentiality and sensitivity of the allegations,” she said.
As regards to the specific questions raised, which most of them are directly or indirectly related to pending legal proceedings, kindly note that INSETA is currently prejudiced to make comments on incomplete legal proceedings and matters that are sub judice.
“As a public institution, INSETA remains committed to the promotion of the Skills Development Act aimed at inclusive and participatory skills development. INSETA endeavours to fulfil this mandate in partnership with the QCTO, stakeholders and learners.”
OUTA is expected to partner with GIFS in taking up the investigation as an extension of its work on unearthing corruption in South Africa.
On Wednesday, former Deputy President, Dr Phumzile Mlambo-Ngcuka, will deliver a keynote address via video and GIFS CEO, Dr Kershen Pillay, will lead a discussion on ‘Ethical Leadership in Education’, together with other high-profile guests on a panel, exploring the growing need for ethical leadership in our country, especially in education.
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