Setas working despite the odds, says state

The Department of Higher Education and Training insists the Sector Education and Training Authority (Seta) system is working despite some of the authorities continuing to face governance challenges.

Three Setas remain under administration for reasons including poor governance and noncompliance with the Public Finance Management Act.

The 21 Setas, which cover all work sectors, are tasked with creating opportunities in the form of internships, skills programmes and apprenticeships. They control billions of rand via a skills levy derived from all employers who have more than 50 workers.

They receive more than R14bn in ring-fenced funds annually and are governed by boards made up of labour and employer representatives.

The department said two of the three Setas under administration — the Culture, Arts, Tourism, Hospitality and Sport Seta and the Safety and Security Services Seta — were being rehabilitated and were well on their way out of administration.

The Wholesale and Retail Seta was the most recent authority to be placed under administration. It received a qualified audit opinion from the auditor-general in the financial years 2014-15 and 2015-16.

Department spokesman Madikwe Mabotha said officials were busy with a proposal on the new Seta landscape that would deal with some of the inherent efficiency challenges.

“It is not uncommon for organisations that operate autonomously like Setas to occasionally find themselves entangled in incidents of poor governance and maladministration. But any attempt to vilify the entire system based on a few bad apples should be dismissed as prejudice and bias,” he said.

Higher Education and Training Minister Blade Nzimande has said the way Setas operate had to change.