Manamela defends placing three SETAs under administration

Higher Education Minister Buti Manamela on Friday said he placed the three Sector and Education Authorities (SETAs) under administration in August after consulting the National Skills Authority.

Manamela said he had found the Local Government SETA, Services SETA, and the Construction Education and Training Authority in “near paralysis, and they could not be left unattended” upon assuming office in July.

“Boards were unable to discharge their fiduciary duties, CEOs were conflicted, and forensic findings were ignored. The people whom these SETAs were meant to serve – learners, workers, and employers – were left stranded,” he said.

Manamela appeared before the committee to explain the placement of the SETAs under administration and the appointment of Lehlogonolo Masoga, Oupa Nkoane, and Zukile Mvalo as administrators for Services SETA, CETA, and Local Government SETA, respectively.

He said to place any public entity under administration was a serious measure and to do so in three SETAS was obviously unprecedented.

Manamela told the MPs that irregularities were a norm at the Services SETA.

“The Werksman forensic report, commissioned in 2022, set out in detail maladministration and possible misconduct, yet recommendations were left unattended. The board turned a blind eye while service providers were recycled and consequence management was avoided,” he said.

Manamela said the CEO had resigned, citing untenable conditions, in a move that created a vacuum in the organisation, paralysed by infighting and weak oversight.

According to Manamela, the Construction SETA had been under administration between 2020 and 2022.

“In that intervention, by 2024, there was whistle-blower intimidation, recognition of R80 million wasteful expenditure, and the board did not sit with the Auditor-General flagging the same weakness year after year.”

He also said that instead of financing skills for the construction and built environment, the Construction SETA had been consumed by battles over tenders and internal power.

Manamela added that the National Treasury had raised alarming irregularities in the Local Government SETA with the appointment of the CEO, unlawful dissolution of the risk and audit committee, and possible criminality in procurement.

“Municipal projects stalled and learners were left without stipends, and millions remained frozen in reserves in a state of dysfunction.”

Manamela said he had consulted with the CEOs until information emerged that they were conflicted and he could not continue with the required consultations.

“Our action was to withdraw powers of CEO conferred by then ministers of being accounting authorities and their status as CEOs remains unaffected.”

Manamela added that the appointment of the administrators was not arbitrary and had followed a screening process that entailed criminal records, citizenship, fraud listing, and academic qualifications.

He said political affiliation was not a disqualification.

“What matters is the capacity to restore governance and ensure stability in our SETAs. I believe the three individuals possess the capacity to do so.”

Manamela noted that two of the CEOs have launched action in the labour and high courts.

“The facts of mismanagement are not contested. When we received papers, we noted there is no contest that there has to be an intervention,” he said.

“Our actions, we believe, are lawful and they were necessary and proportional to the risk we were confirmed with,” he said.

mayibongwe.maqhina@inl.co.za