The auditor-general has flagged serious governance failures, including the absence of a chief executive officer (CEO) and other key executives at the Education, Training and Development Practices Sector Education and Training Authority (ETDP Seta).
In an audit report addressed to the board, dated 21 April, the auditor-general’s office outlined a string of instances of non-compliance with the Public Finance Management Act (PFMA) and the Skills Development Act.
Board failed to appoint permanent CEO within six months
Central to the findings is the failure by the board to appoint a permanent CEO or submit a shortlist of candidates to Higher Education Minister Buti Manamela within the legally required six month period.
The board, appointed on 26 September last year, was required to recommend three suitable candidates for the CEO position by March this year.
However, the auditor-general found that this process had not been finalised by the end of the financial year.
The situation has been compounded by the expiry of the acting CEO’s contract on 31 March, leaving the Seta without any executive leadership.
According to the report, on 29 September last year, Manamela issued a directive that the board must prioritise the appointment of an acting CEO, recruitment for the appointment of a permanent CEO, or submit a recommendation for the appointment of the current incumbent for a further term of office ending on 31 March 2030.
Manamela directed board to prioritise appointments
“In addition, there are no officials acting in positions of key members of management who have been placed on suspension.
“These include the position of the CEO. This has resulted in a leadership vacuum at the executive management level,” the audit report says.
Auditors also noted that several senior management positions remain vacant or unfilled due to suspensions, further deepening what has been described as a “leadership vacuum”.
“This absence of a CEO and chief financial officer constitutes a material governance deficiency”, the report says, warning that the entity’s ability to ensure accountability and financial oversight was severely compromised.
The findings highlight breaches of key legislative requirements, including sections of the PFMA that obligate public entities to prevent irregular and wasteful expenditure, as well as provisions of the Skills Development Act governing executive appointments.
Weak internal controls and ineffective human resource management
Auditors attributed the failures to weak internal controls and ineffective human resource management, particularly the inability to ensure that critical posts are filled timeously and in line with regulatory prescripts.
The accounting authority has been instructed to respond within days, either contesting the findings with evidence or outlining corrective actions, including proposed adjustments to financial statements and plans to address the leadership crisis.
The audit outcomes raise fresh concerns about governance stability within Setas, which play a pivotal role in South Africa’s skills development framework.
Manamela’s spokesperson, Matshepo Seedat, had not replied to questions at the time of publishing.
Seta spokesperson Anna-Joy Motene says to maintain the integrity of the review and any related processes, the ETDP Seta will refrain from providing further detailed public commentary at this time.
