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From the early years of skills development – after the 2000 implementation, there has been a succession of media headlines involving Sector Education and Training Authorities (SETAs), involving various forms of mismanagement of funds. Ministers Mdladlana and Nzimande, particularly, have responded by implementing amendments to the Skills Development Act 97 of 1998, in 2003, 2008, and 2011, attempting to establish better financial controls.
But it seems we are never entirely free of the headlines.
Now, we have the Special Investigation Unit (SIU) media report confirming that President Ramaphosa has issued Proclamation 267, approving the investigation into the allocation of Discretionary Grant funds, and whether employees or officials of the Chemical Industries Education and Training Authority (CHIETA) “…may have had undisclosed or unauthorized interests, and the extent of any benefit so derived by such employees or officials”.
The investigation is in conjunction with an investigation authorized under Proclamation 265, authorizing a national investigation into the Housing Development Agency and provincial departments handling of housing development projects. All aspects of how land for development was acquired, including previous ownership and details of whether it was owned by – or on behalf of - the Housing Authority, or provincial departments, and the release of state-owned or privately owned land for development – particularly the related financial transactions.
In terms of CHIETA, the investigation aims to establish whether the State or CHIETA suffered any losses or prejudice, the intention being to recover such losses from those involved. Included in the investigation is the “…procurement of, or contracting for” information technology and auditing services by CHIETA, and the payments thereof. Here, national legislation, including the Prevention and Combating of Corrupt Activities Act 12 of 2004 is mentioned in the Proclamation 267, as well as Treasury guidelines, and CHIETA’s policies and procedures are all relevant. The investigation is to establish whether the conduct and payment for services were: fair, competitive, transparent, equitable and cost-effective, and whether there was actual loss or potential prejudice to the SETA, to establish whether conduct of the SETA employees, officials, or associated parties is irregular, improper, or unlawful, and whether as a result there is fruitless of wasteful expenditure – by CHIETA, or the State.
The time period to be investigated runs from 1 January 2016 to 13 June 2025, but includes any related conduct both: before, or after, that date. The media statement issued by the SIU Spokesperson K. Kganyago notes that the intention beyond the investigation of maladministration, corruption, and fraud, is to identify systemic failures in order to make recommendations to prevent future SETA losses. If the SIU uncovers evidence of criminal conduct, this will be referred to the National Prosecuting Authority (NPA). In respect of acts of corruption, fraud, or maladministration, the SIU is authorized to initiate civil action in the High Court or a Special Tribunal.
For media statement see:
For Proclamation 267 see:
For Proclamation 265 see:
For enquiries contact: SIU Spokesperson K Kganyago, email [email protected] 082 306 8888
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