Minister of Higher Education and Training Buti Manamela defends SETA administration, highlighting six months of significant progress in restoring governance, financial stability, and expanding skills development across key South African education institutions.
Image: Ayanda Ndamane / Independent Newspapers
Minister of Higher Education and Training, Buti Manamela, says the decision to place three Sector Education and Training Authorities (SETAs) under administration in August 2025 has been justified by the significant progress made in the six months since the intervention.
Addressing the media on Tuesday, Manamela outlined the steps taken to restore governance and financial stability at the Construction Education and Training Authority (CETA), the Services Sector Education and Training Authority (Services SETA), and the Local Government Sector Education and Training Authority (LGSETA).
He cited systemic governance failures, including qualified audit opinions, irregular financial commitments, and mismanagement that had compromised the effectiveness of these institutions
He emphasised that the decision, which was met with resistance at the time, was a necessary move to stabilise the institutions, enforce consequence management, and restore their credibility.
"The decision was not taken lightly. It was a necessary and decisive step to stabilise governance, restore institutional integrity, enforce consequence management, and protect the credibility of South Africa's skills development system,'' said Manamela.
The Minister noted that the evidence of progress in these institutions was clear and could be seen in tangible results.
He highlighted that CETA, which had been grappling with financial mismanagement, now had a new Chief Financial Officer and a reconstituted leadership team.
Manamela pointed to the institution’s recovery efforts, including the ongoing development of seven Skills Centres across various provinces, which are expected to contribute significantly to skills development in South Africa.
“CETA has driven a structured four-phase recovery framework of 35 defined activities across 11 key performance areas, 23 of which have been fully achieved and 12 are in progress. Not one has been abandoned,” Manamela said.
Services SETA, according to Manamela, had inherited a staggering R3.4 billion in legacy commitments, some dating back over eight years.
By January 2026, these commitments were reduced to R2.8 billion, he said.
The Minister also shared that a legal process was underway to cancel certain prescribed transactions, with hopes of recouping up to R2.8 billion, which would be reinvested into Discretionary Grant funds for the benefit of learners.
“A nationwide campaign through national newspapers, the Government Gazette, and the sheriff of the court has served notices on affected parties totalling approximately R2.3 billion. Parties were given until 28 February 2026 to make representations,” Manamela said.
On LGSETA, Manamela highlighted that disciplinary actions had been pursued against the implicated CEO following findings from a National Treasury forensic report.
The administration had also resolved a long-standing dispute with the Auditor-General, allowing the institution to refocus on rebuilding internal controls and financial management systems.
“The work done in these six months has protected, and in some cases begun to recover, the funds that industry contributes through the skills levy. The R2.8 billion process at Services SETA, if fully realised, represents a significant reinvestment into Discretionary Grants.”
"We will defend the interventions vigorously. Every intervention was preceded by documented evidence of governance failure, every Administrator's mandate is grounded in law, and every action taken has been proportionate to the problems identified."
Manamela also mentioned the intervention at the College of Cape Town, which had faced governance breakdowns.
In October 2025, following a parliamentary hearing, the Minister appointed a Stabilisation and Governance Support Team to investigate allegations of maladministration.
Based on the findings, the College Principal was dismissed, and Dr Robert Nkuna was appointed as the new Administrator to stabilise the institution.
“The SGST's primary recommendation was that the Minister dissolve the College Council and appoint an Administrator in terms of section 46(4) of the CET Act,” he said.
Manamela reaffirmed that these interventions were not about demonstrating authority, but about protecting the essential skills development system in South Africa.
"In a country where unemployment, poverty, and inequality remain the defining challenges of our time, skills development is not optional. It is foundational," he said.
Manamela expressed confidence that the progress made in the last six months would continue, with a focus on ensuring institutional stability and improving the delivery of skills development for South Africa’s workforce.
"Six months of evidence confirms that decisive leadership, strengthened oversight, and ethical governance work," he added.
hope.ntanzi@iol.co.za
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