Global update BUSA litigation on DHET interpretation of Mandatory Grant %


Front Page Looking For… Skills Development Facilitators Global update BUSA litigation on DHET interpretation of Mandatory Grant %

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    • #73448
      sylvia hammond
      Keymaster

      Thank you to our member Menet, who has forwarded a copy of Global Business Solutions’ comprehensive update on the litigation against the Department of Higher Education and Training (DHET).

      The key issue is the percentage of Skills Development Levy (SDL) refund that is paid to stakeholders who participate in submitting reports on training plans and training done – for refund of Mandatory Grants.

      (Annexure 2 – Workplace Skills Plan (WSP) & Annual Training Report (ATR))
      PIVOTAL plans & reports on training toward qualifications and part qualifications provide access to discretionary grant funding.

      My opinion is that the DHET is underestimating the impact of significantly reducing or removing the MG. Participation per sector has remained consistently low – as many employers already regard the SDL as a tax they will just pay, include in accounts, and forget about.

      The full update received from Menet is attached.

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    • #73451
      Marlie Spencer
      Participant

      Just an update for interested members: DHET has rescinded Circular 1 of 2020 without further instructions. Circular 4 of 2020 is attached.

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      • #73453
        sylvia hammond
        Keymaster

        Dear Marlie,
        Thanks so much for the update – much appreciated.

        And such a relief – we all have so much constructive work to do, it is really counter-productive to have continuous litigation.

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    • #73455
      Marlie Spencer
      Participant

      Hi Sylvia,
      Indeed. The problem is that the SETAs are still left in a compromised position as budgets and targets for the next financial year has been finalized based on a 20% mandatory grant. This process commenced before the judgement in October. A percentage other than 20 will have an enormous impact on national skills development needs, including but not limited to bursaries and placement programmes for unemployed youth. On the other hand, the original decrease in the mandatory grant and consequent increase in the discretionary grant resulted in placing enormous strain on the 10% admin limitation. In essence the SETAs had to increase ‘productivity’ by 60% by using the same resources. It’s, as always, interesting times. SETA boards are reaching end of term, CEO’s need to be appointed by the new Boards, the QCTO is changing its delegation to the SETAs, 4IR and economic constraints come into the mix, etc. Creativity and integrity must be at the order of the day to balance the needs of various stakeholders, finding solutions with impact.

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      • #73456
        sylvia hammond
        Keymaster

        Thank you Marlie, that provides good context for us to understand the challenges SETAs face.

        My concern is with the persistence of legal action, and also so much more -with the depths of administration. It is that the intention of skills development – as an instrument of redress – is totally drowned.

        The intended recipients are lost.

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    • #73468
      Des Squire
      Participant

      Once again Sylvia it is not just a case of the intended recipients losing out, it is a failure by government to take care of those in need. In so many areas of government the plot has been lost – the poor get poorer, the un-educated remain un-educated, HDI remain disadvantaged and employers are forced by legislation and the unions to retrench more and more people. But when it comes to elections nothing will change and those who are the current victims will still vote for the same government who are failing them miserably. The objectives of the NQF and SDL have been lost and we unfortunately allowed it to happen as we allow so much else to happen despite the fact we do not condone it.

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    • #73474
      sylvia hammond
      Keymaster

      Thanks for your comment Des – you have been very quiet, so I am pleased to hear from you.
      While I can’t disagree with you on much that you say, I cannot accept that we cannot change.

      Evidence – the DHET has withdrawn the Circular 1 of 2020 – by the issue of Circular 4 of 2020.
      See attached.

      So while we may be in a war, that is not to say that we cannot win small battles along the way.

      I stand by the philosophy – if we can think it, we can do it.

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    • #73659
      Stephanie Stylianou
      Participant

      Thank you Menet, Sylvia and everyone !

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