Financial controls improve at Services Sector Education and Training Authority

The office of theAuditor-General of South Africasays there has been an improvement in financial controls at the Services Sector Education and Training Authority (Services Seta). “The reduced number of commitment findings indicates management’s efforts to resolve the prior year’s qualification,” senior AG manager Xola Khohlakala said at the recent annual general meeting of the training authority. “However, we stress that lasting improvements in audit outcomes require consistent, coordinated efforts from all stakeholders in executing their roles and responsibilities.” The Services Seta is one of 21Sector Education and Training Authoritiesin South Africa mandated to develop skills for specific economic sectors.

The Setas were at the centre of PresidentCyril Ramaphosa’saxing in July of former higher education ministerNobuhle Nkabane, who wasunder firefor allegedly lying about the process of appointing board chairs for the authorities. The Democratic Alliance had pushed for Nkabane’s dismissal, submitting evidence to parliament showing that she issued letters terminating the contracts of board members at the Setas and appointed people allegedly aligned to the ANC. The Services Seta is pulling all the stops to improve its audit outcomes and tighten controls over the funds it disburses to skills development providers, universities and colleges to ensure accountability, Masoga told the AGM last week.

“During the period under review, the Services Seta was afflicted by allegations of malfeasance and gross misconduct which triggered internal investigations and involvement of law enforcement agencies,” he noted. “It is indeed regrettable that the 2024/25 financial year marked an uninterrupted record of poor audit outcomes and inadequate achievement of performance targets.” Masoga said work was underway to enforce consequence management and accountability and ensure that the Services Seta fulfilled its mandate of helping disadvantaged unemployed youth and workers who were desperate for access to quality education and training. Citing the auditor-general’s office, he said many of the financial challenges at the Services Seta could be attributed mainly to poor forward planning and leadership and inadequate efforts to clear legacy balances, among others.