Farmers Lives Matter SA

Minister Under Fire as SETA Corruption Scandal Deepens, Billions at Risk

The Minister of Higher Education and Training, Dr. Nobuhle Nkabane, is facing mounting criticism over delays in appointing new board chairpersons for South Africa’s 21 Sector Education and Training Authorities (SETAs), while fresh allegations of corruption and financial mismanagement continue to plague the embattled institutions.

The scandal intensified after a Sunday Times exposé revealed that R13 million meant for a biometric system at the Construction Education and Training Authority (CETA) had allegedly been siphoned off through irregular procurement processes. The CETA has refused to comment, citing ongoing legal proceedings.

“A Cesspool of Corruption”

Wayne Duvenage, CEO of the Organisation Undoing Tax Abuse (OUTA), joined a virtual discussion to shed light on the systemic rot within SETAs, describing them as a “cesspool of corruption” costing the country billions.

Duvenage revealed that OUTA’s investigations date back to 2018, when whistleblowers exposed fraudulent tenders, inflated contracts, and ghost projects across multiple SETAs. “This is not an isolated incident—it’s a network of corruption spanning years,” he said.

Key findings include:

  • Tender manipulation: Contracts for services like biometric systems, office rentals, and IT infrastructure were awarded fraudulently, with some deliverables never materializing.

  • Whistleblower retaliation: Employees who exposed corruption were allegedly sidelined, suspended, or dismissed on trumped-up charges.

  • Political interference: Concerns have been raised that Minister Nkabane was pressured to appoint politically connected individuals as SETA board chairs, undermining governance.

Youth Development at Risk

With youth unemployment at crisis levels, Duvenage warned that SETA mismanagement is directly harming skills development. “Companies have lost faith in the system. Funds meant for training are being looted, leaving young people with subpar or even fictitious qualifications,” he said.

The National Skills Fund and SETAs are set to receive a combined R27.8 billion in the next financial year, but OUTA fears the money will again be misused without urgent reforms.

Minister’s Challenges

Minister Nkabane, who inherited the crisis from her predecessor, Blade Nzimande, has faced backlash for delays in appointing new SETA leadership. Duvenage acknowledged she was handed a “mess” but urged swift action, including:

  • Appointing independent, qualified board chairs.

  • Removing CEOs and CFOs implicated in corruption.

  • Holding a national summit with government, business, and civil society to overhaul the system.

Way Forward

As public outcry grows, pressure is mounting on Nkabane to clean up the SETAs and restore confidence in South Africa’s skills development framework. With billions in public funds at stake, the question remains: Will the minister act decisively, or will the looting continue unchecked?