Seta millions lost to misspending, fraud
COFFERS LOOTED
A FORENSIC investigation by global auditing and tax advisory firm PricewaterhouseCoopers (PwC) has uncovered large scale looting and corruption at the Chemical Industries Education & Training Authority.
The taxpayer-funded organisation was forced to appoint forensic investigators last year after allegations of wanton fraud and corruption within the top echelons of the Seta refused to go away.
The 146-page report by PwC details serious acts and omissions that resulted in the Seta losing millions of rand to fraudulent activity by, among others, its own top management.
Now general staff members have accused the Seta executive of saving their own skins by not acting against those implicated in fraud and corruption.
Among other shocking findings, PwC found that one manager awarded contracts to a laboratory services company owned by himself.
Furthermore, that subsidies for learnerships were overpaid in favour of companies linked to management.
In one example, a grant for 10 learners at R1 000 each was inflated to R100 000 and nobody ques- tioned this.
In another instance, the Seta authorised subsidies for 70 learners yet none of them was South African.
The Setas are designed to benefit only South Africans.
An official of the Seta ran up cellphone bills to the tune of R102 000 in 18 months and the taxpayer paid for this despite the existence of policy that stipulated that this was for her own account.
No less than eight managers were cited in the report for disciplinary action and to recover fruitless and wasteful expenditure caused by their actions.
Staff members say despite their repeated attempts to remind the executives of the Chemical Industries Education & Training Authority of the recommendations of PwC, no action has yet been taken.
When Minister of Higher Education and Training Blade Nzimande was appointed he made a lot of noise regarding dysfunctional Setas.
Last year, our sister publication Sowetan reported that Nzimande had lambasted the Setas for spending too much money on short courses and therefore failing the youth. He said the Setas had been given a budget of R8bn and used more than 80% of that sending learners on short courses.
“We need more money to be spent towards professional education,” he was quoted as saying.
He said the number of unemployed youth was estimated to be 2,8 million and that the majority of them were black.
In April last year, Nzimande was threatened with a law suit by people aligned to Setas after he introduced more accountability.
At the time of going to press, the Auckland Park-based Seta had not responded to e-mailed questions and Sunday World was informed that higher education department spokesperson Vuyelwa Qinga was unavailable.
Qinga ’ s deputy Bridget Ndlovu said she was not permitted to speak on behalf of the ministry.
mzwandile@sundayworld.co.za ; Twitter @mzwaik
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