The Services Sector Education and Training Authority reports that R2.8 billion of legacy commitment has been recovered for re-investment in education and skills development after the first 12 months of administration by administrator Lehlogonolo Masoga.
The amount is part of a larger turnaround initiative being taken by the SETA to address financial and governance challenges.
Funds Allocations
The turnaround includes a significant ramping up of funding for education and training.
Among the allocations that have been reported are:
R905 million to TVET colleges
R559 million to universities
R90 million to Community Education and Training colleges
R1.3 billion for a national bursary programme
Funds for a 20 000 internship programme
R103 million in relation to a Takealot partnership
R84 million for a Wits University entrepreneurship partnership
R100 million for the UCT ARISE skin-care research facility
The Service SETA has reported that the amounts recovered represent funds that would otherwise be deployed on legacy commitments that have been cancelled, or prescribed.
The financial review also involved considering older liabilities and commitments to establish which could be cancelled or prescribed, or which ones had been fulfilled.
As part of the process legal and accounting firms were engaged to review 1 434 transactions including those that had taken place years ago.
Parties involved were also given an opportunity to make representations in relation to certain transactions.
It has also been reported that the review was aimed at releasing funds for new discretionary grant programmes as well as other skills-development initiatives.
Governance
In addition to finances, other aspects of governance were also reviewed.
Notably, there has been a restructuring of governance organs while a number of internal audit findings relating to ICT were also cleared.
The Service SETA has also appointed a new Chief Financial Officer as part of measures to improve financial governance.
Additionally, a Project Management Unit has been formed to deal with matters pertaining to rescinding project-related problems, including project delays, learner certification and stipend-related irregularities.
Youth Development
Youth development has also been a priority area for the Service SETA.
The organization has reported that a 20 000 internship programme is underway with learners placed in host organisations.
It has also announced a three-year partnership with Takealot to create 20 000 training and employment opportunities for unemployed young people.
In addition, the Service SETA has a R1.3 billion bursary programme that it reports funds 15 000 students.
The SETA has also been working to address outstanding bursary payments to tertiary education institutions as part of the turnaround process.
The Importance of Programme Implementation
While R2.8 billion in resources have been recovered and allocated to various areas of development there is still the need to ensure that these amounts are deployed to achieve their intended purposes.
This is particularly so considering the concerns raised by stakeholders regarding project delays, learner certification and stipend-related irregularities.
At the most basic level, the turnaround being undertaken by the Service SETA is predicated on the ability to utilise the funds that have been recovered.
That means ensuring that learners are placed, funded and certified in terms of the relevant programmes.
Unless these aspects of operations are handled efficiently the impact of the R2.8 billion recovered in legacy commitments will be undermined.
While the SETA has acknowledged a number of challenges in this area of operations it will be important to demonstrate value for money.
To a large extent, the turnaround being undertaken by the Service SETA has been focused on making sure that the organisation is in a position to deliver on its mandate in relation to skills development.
As things stand, the issues affecting the SETA have created enormous challenges for learners and institutions that have relied on its support for their operations.
With the administration of Lehlogonolo Masoga being extended until January 2027, the focus will turn to resolving outstanding matters for the benefit of the affected stakeholders.
Sources
Department of Higher Education and Training
Services SETA
Services SETA administration progress information
Note: This article makes a distinction between the amounts recovered, allocations and ongoing programmes. Any claims made by officials in relation to a turnaround in the finances of the entity have been acknowledged accordingly.
Corrections: Should any information contained in this article be shown to be inaccurate, it will be corrected as promptly as possible.
Disclaimer: The R2.8 billion figure refers to the amounts of legacy commitment recovered or reduced in the course of the turnaround process undertaken by the Services SETA. It does not reflect R2.8 billion in additional income. The allocations highlighted separately may be subject to other parameters and timelines.
