Irregular spending dogs Setas
R216m spent in dubious transactions over past financial year
THE MAJORITY of the country’s 21 Sector Education and Training Authorities (Setas), the recipients of more than R10billion of taxpayers’ money annually, remain far from being institutions the government could be proud of.
Not only did they spend a whopping R216 million in dubious transactions over the past financial year, many of them remain plagued by governance instability.
Executives at several of the Setas, who have a mandate to skill millions of youths who are not yet in education, employment or training, face corruption allegations. The bodies are entities of the Higher Education and Training Department.
Two Setas currently face probes by the Special Investigations Unit, while several have been hit by a senior staff brain drain.
The troubles of the Setas are laid bare in a report that the department has presented to Parliament’s committee on higher education.
The R216m in irregular expenditure was incurred by 12 of the 21 Setas. The Wholesale and Retail Seta incurred the highest irregular spending.
“Effective and appropriate steps were not taken to prevent irregular expenditure amounting to R84054000,” said the report.
It also incurred fruitless and wasteful expenditure amounting to R293000 due to its late filing of tax returns.
The Financial and Accounting Seta came second, with its irregular expenditure amounting to R56m.
“The majority of the irregular expenditure (at this Seta) was caused by non-compliance with supply chain management requirements,” the report read.
The Culture, Arts, Tourism, Hospitality and Sport Seta took third position. Its dubious transactions amounted to R47.2m.
This Seta had been directed by Minister Blade Nzimande’s office to reduce its administration costs, said the report.
The Mining Qualifications Authority spent R17.6m improperly.
“The majority of the irregular expenditure was caused by an award to a supplier who did not meet functionality.
“Most of the staff are in acting positions, and that creates instability. The contraction in the mining sector makes it difficult for learners to be placed at workplaces,” read the report.
At the Energy and Water Seta, “effective steps were not taken to prevent irregular expenditure amounting to R4.3m”.
“The department advised the Seta to cut some international trips and stick to the prescribed allocated budget,” said the report.
The Agriculture and Media setas faced SIU investigations over various allegations, including financial misconduct and contravention of supply and grants regulations.
The Media Seta incurred more than R1m in irregular spending after failing to adhere to supply chain management regulations.
“One accounting authority member and the former acting chief executive were suspended (at this Seta) based on allegations of irregular expenditure,” the department revealed.
Members of the portfolio committee expressed concern over the irregular spending.
“Not anywhere do you talk about consequences (over wrongdoing),” member Baxolile Nodada told the department’s officials.
But there was a glimmer of hope at a few Setas. Though it faced numerous allegations of corruption, the Construction Seta (Ceta) has significantly improved its performance.
“The Ceta received a clean audit over the past three financial years. The accounting authority is fully functional,” said the report.
The Insurance Seta was another that the department praised, saying it “maintains clean audits and its performance has improved to 100% of its targets. The accounting authority functions well.”
Despite incurring R2m in irregular expenditure, the previously troubled Safety and Security Seta has improved its performance.
Auditor-general Kimi Makwetu recently addressed the Seta CEO Forum about how to prevent irregular and wasteful expenditure, said the report.
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