The
Higher Education and Training Minister
SETAs Placed Under Administration
On 19 August 2025, the Minister placed the following SETAs under administration:
Construction Education and Training Authority (CETA) Services Sector Education and Training Authority (Services SETA) Local Government Sector Education and Training Authority (LGSETA)
Manamela described the move as a necessary step to restore governance, enforce accountability and protect the credibility of South Africa’s skills development system.
“Six months later, the evidence is clear: the decision was not only justified, but essential,” Manamela said.
The Minister noted that this update follows
Governance Failures Identified
Before the interventions, serious governance and financial management failures were identified:
CETA had received four consecutive qualified audit opinions and overcommitted discretionary grant funds by R1.4 billion against an annual income of R500 million. Total commitments stood at R2.7 billion, while internal controls had deteriorated.
Services SETA recorded seven consecutive qualified audit opinions, with no consequence management over seven years. Investigations revealed supply chain failures and irregular practices.
“Despite three major investigations, not a single official had been held accountable,” the Minister said.
LGSETA faced findings from a
“In each case, administration was the appropriate and proportionate remedy under the Skills Development Act,” Manamela said.
Progress in Restoring Governance
The appointed administrators were tasked with restoring controls, strengthening financial management and rebuilding stakeholder trust.
CETA Recovery Plan
Administrator Oupa Nkoane implemented a four-phase recovery strategy covering 35 activities. Of these, 23 have been completed and 12 are in progress.
A permanent Chief Financial Officer took office on 2 March 2026, ending nearly two years of acting leadership. Oversight committees have been reconstituted, internal audit findings addressed, and salary negotiations finalised.
Seven Skills Centre projects are underway across KwaZulu-Natal, North West, Northern Cape and Western Cape in partnership with the
Services SETA Improvements
At Services SETA, legacy commitments were reduced from R3.4 billion to R2.8 billion. A review of 1 434 transactions identified amounts eligible for cancellation, with notices totalling R2.3 billion issued.
An acting CA(SA)-qualified CFO was appointed in February, and no new irregular or wasteful expenditure has been recorded since administration began.
The 20 000-internship programme is now operational, offering two-year workplace exposure. A three-year partnership with
A R1.3 billion bursary fund supports 10 000 TVET College students and 5 000 university students. Outstanding bursary payments have been settled.
The
LGSETA Stabilisation
At LGSETA, implementation of the forensic report is underway. Disciplinary processes against the implicated CEO have commenced, and a dispute with the
The Labour Court ruled in favour of the Minister and LGSETA in relation to the former CEO’s employment challenge.
Restoring Confidence in Skills Development
Manamela said the progress achieved demonstrates that decisive leadership and intervention can restore accountability within SETAs and ensure that skills development levy funds are used effectively to equip South Africans with critical skills for economic growth and social development.
