Broken Promises and Billion-Rand Blunders: Outa Demands Action from Higher Education Minister on SETA Corruption

In the hazy corridors of South Africa’s vocational training landscape, another storm is brewing. It’s not about underperformance or outdated curriculums, this time, it’s about R21 billion in taxpayer money, questionable tenders, and a growing sense that South Africa’s Sector Education and Training Authorities (SETAs) are in crisis.

And now, all eyes are on the newly appointed Higher Education and Training Minister, Buti Manamela, to take decisive action.

R21 Billion Down the Drain?

The Organisation Undoing Tax Abuse (Outa) has sounded the alarm, urging Manamela to address what it calls “a failing SETA model.” The non-profit watchdog’s latest investigation exposes alleged governance failures and rampant mismanagement in entities like the Construction Education and Training Authority (CETA) and others meant to empower South Africa’s youth.

“These institutions are bleeding public funds while the youth they should serve are left stranded,” says Wayne Duvenage, Outa’s CEO. “We’re dealing with recycled leadership, dodgy tenders, and investigations that are hidden or ignored.”

At stake? The future of millions of unemployed and under-skilled South Africans and billions meant to be invested in their development.

What’s Really Happening Inside the SETAs?

At the centre of the storm is CETA, where Outa has reviewed two damning forensic investigations.

• A 2019 report by Gobodo Forensic and Investigative Accounting, commissioned by the Department of Higher Education, flagged irregular procurement and employee victimisation.

• Then came a 2020 investigation by Duja Consulting, which cost a jaw-dropping R18.9 million. The report found irregularities in all 24 tenders it reviewed and called for disciplinary action. It was submitted to then-Minister Blade Nzimande in 2021, but has never seen the light of day.

“When R18.9 million is spent on a forensic investigation and the report ends up buried, that’s not negligence, it’s contempt for the public,” said Outa’s Senior Project Manager, Rudie Heyneke.

Outa says it’s not just CETA. Its investigations into other SETAs, including INSETA, the Services SETA, and the MICT SETA, paint a similar picture: non-functional training centres, inflated contracts, and shady service provider relationships.

At INSETA, a company reportedly linked to former board members was awarded an R18 million contract to clean up historical learner records. At the Services SETA, over R1 billion went into training centres that are now vandalised, abandoned, or simply never worked as intended.

Whistleblowers Silenced, Not Protected

Despite legal victories, whistleblowers continue to face retaliatory action. One such individual, cleared of all allegations and reinstated, is now facing renewed disciplinary proceedings, what Outa believes is direct punishment for speaking out.

“We need a reset, and that starts with listening to the people who are risking everything to expose corruption,” says Duvenage.

What Does Minister Manamela Say?

So far, the response from government has been cautious. Department spokesperson Mandla Tshabalala confirmed they’ve received Outa’s request for a meeting and are still gathering information from SETAs.

“It has only been a few days since the appointment of Minister Buti Manamela, so we do not have all the information at the moment,” Tshabalala told media.

While understandable, public watchdogs and education stakeholders argue that the luxury of time has long run out.

South Africans React: Enough Is Enough

On social media, the outrage is growing. A popular X (formerly Twitter) user posted, “Another year, another SETA scandal. Meanwhile, youth unemployment is sky-high. Who’s really benefitting from these ‘skills’ programmes?”

A vocational lecturer from Durban wrote on Facebook:
“My students come to me with hope, they leave with frustration. If SETAs can’t deliver training or ethical leadership, what are they for?”

What Needs to Happen Next?

Outa has said it will present its findings, including the buried Duja report, to Parliament’s Portfolio Committee on Higher Education and Training. The hope is that a public spotlight and political pressure, will force accountability where internal audits have failed.

Duvenage is firm: “We’re calling for a frank conversation with Minister Manamela. This sector needs transparency, independent boards, and the political will to act on the facts not file them away.”

South Africa’s SETA system was supposed to be a bridge to opportunity. But right now, it’s looking more like a billion-rand black hole and the people it was built to serve are still waiting on the other side.

{Source: IOL}

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