The Democratic Alliance has written to Parliament’s Higher Education Committee, calling for the Auditor-General to appear before the committee to explain findings related to over R600 million spent by the Education, Training and Development Practices Sector Education and Training Authority (ETDP SETA) without proper accounting or traceable records.
The Auditor-General’s report highlighted that more than R637 million in discretionary grant expenditure—intended for skills development programs such as bursaries, internships, and work-integrated learning—could not be substantiated due to completely missing records. Auditors were unable to confirm the validity of the spending or trace where the funds went, pointing to systemic governance failures, poor record-keeping, material misstatements in financial reporting, and a breakdown of internal controls across the entity.
DA spokesperson Karabo Khakhau described the situation as a serious betrayal of young South Africans who rely on the skills development sector for opportunities to bridge unemployment and support their families. She stated that the disappearance of such funds, with no proof or trace, could be understood as potential theft of public money, raising questions about whether records were strategically removed to obscure the Auditor-General’s view. Khakhau emphasized the lack of consequence management for executives and board members involved, despite ongoing issues across multiple SETAs.
In response to the revelations, Higher Education and Training Minister instructed the ETDP SETA’s Accounting Authority to submit an urgent report within 48 hours. The report must detail the procurement processes followed—particularly regarding office leases—and outline the extent of any financial exposure to the department.
Khakhau welcomed the minister’s swift action but criticized it as reactive, arguing that it should not have required the DA’s letter for the minister to address known issues from the prior financial year. She insisted that the minister, along with departmental officials—including those responsible for skills development oversight—must personally account to Parliament alongside the SETA leadership. Khakhau noted that entities like the ETDP SETA report to the department, which in turn reports to the minister, and appearances before Parliament require ministerial or deputy ministerial involvement when relevant.
The DA has also called for broader reforms, including the dissolution of SETAs, which it described as duplicating functions of technical and vocational education and training (TVET) colleges while serving as opportunities for looting rather than effective skills development for youth.
Khakhau stressed the need for parliamentary accountability to determine the full depth of the problems, with the Auditor-General’s presence to ensure transparency and prevent misinformation. She advocated for consequence management, arguing that allowing R637 million to vanish without trace or repercussions is unacceptable.
This development comes amid separate scrutiny of the ETDP SETA, including an unrelated office lease matter in Johannesburg that prompted the minister’s earlier call for a departmental report on procurement and non-occupation of premises. The Auditor-General’s findings underscore persistent challenges in governance and financial oversight within the SETA sector.