The Department of Higher Education and Training (DHET) is continuing discussions with the Auditor-General of South Africa (AGSA) over matters relating to the appointment of accounting authority members at Sector Education and Training Authorities (Setas).
The department said the audit process concerning matters raised by the Auditor-General has not yet been concluded. It is providing detailed explanations and clarifications as part of the ongoing engagement with AGSA.
“The matters currently being reported should not be understood as the Auditor-General's final audit conclusions. They remain subject to ongoing engagement between the department and AGSA, and the department does not wish to preempt the outcome of that process or legitimise allegations that have not yet been finally determined,” the DHET said.
SETA Appointment Framework Under Review
One of the key issues being discussed is the legislative and policy framework governing Seta appointments.
The DHET said it has been implementing the policy framework as it currently stands. Where the existing framework does not prescribe a particular requirement or process, the department said this cannot be regarded as non-compliance.
“[It is] important to distinguish between non-compliance with an existing legislative requirement and an identified gap or opportunity to improve the legislative and governance framework.”
However, the department acknowledged that parts of the current legislative and policy framework could be strengthened and clarified.
The DHET is therefore undertaking a broader legislative review, including proposed amendments aimed at strengthening governance, accountability, transparency and oversight across the SETA system.
The review is intended to ensure that legislative requirements are clear, practical and capable of consistent implementation.
Seta Accounting Authority Appointments
The department has also engaged AGSA on the selection and appointment of candidates to Seta Accounting Authorities.
According to the DHET, a competitive selection process can result in more candidates meeting the eligibility requirements than there are available positions. The non-selection of an eligible candidate does not, on its own, demonstrate unfair exclusion or an irregular appointment process.
The department said candidates recommended for appointment were assessed against the eligibility requirements contained in the Skills Development Act, 1998 (Act 97 of 1998), and the applicable policy framework.
“Where the review identifies opportunities to improve record-keeping, procedural clarity or the documentation of decisions, these will be addressed as part of the department's ongoing governance improvement programme.”
The DHET said it will address any opportunities identified to improve record-keeping, procedural clarity and the documentation of decisions through its governance improvement programme.
Verification Of Seta Board Members
The department also acknowledged the importance of appropriate verification and due-diligence processes when appointing accounting authority members.
Appointment letters issued to accounting authority members include conditions requiring criminal-record checks and qualification verification to be completed.
The DHET said it will continue examining individual cases raised during the audit process and take appropriate action if an actual deviation from an applicable legal or governance requirement is ultimately established.
Qualifications Of Seta Accounting Authorities
The department also addressed questions concerning the qualifications of some accounting authority members.
It said the Skills Development Act does not prescribe a specific qualification level, including NQF Level 7, as a statutory prerequisite for appointment to a Seta Accounting Authority.
“It is nevertheless desirable that Accounting Authorities collectively possess the qualifications, knowledge, expertise and leadership experience necessary to provide effective strategic oversight and governance,” the department said.
DHET To Continue Engagement With AGSA
The DHET said it will continue reconciling matters raised by AGSA against the specific legislative requirements, Setas and appointments concerned.
The department said this will ensure that conclusions about compliance are based on applicable law and verified evidence.
It said the issues raised were, in its assessment, primarily related to processes, documentation and opportunities for improvement rather than evidence of material failures in the functioning of the SETA governance system.
However, the department said it takes governance concerns seriously and will continue cooperating with AGSA.
“Should the completed audit process establish instances of non-compliance with applicable requirements, misconduct, negligence or other wrongdoing, the relevant circumstances and responsibilities will be assessed, and appropriate corrective measures will be pursued in accordance with legislation, policy and due process.
“The department remains committed to ensuring that Setas operate within a governance framework that promotes integrity, transparency, accountability, compliance and effective stewardship of public resources,” the department said.
