Higher Education says SETA board audit is not final as it reviews skills law

The Department of Higher Education and Training is still answering the Auditor-General of South Africa on how members of Sector Education and Training Authority boards were appointed, and says the audit has not reached its conclusion.

The department said the matters currently being reported should not be read as the Auditor-General’s final audit conclusions. It is providing detailed explanations and clarifications as part of an ongoing engagement, and said it does not wish to preempt the outcome of that process or legitimise allegations that have not yet been finally determined.

At the centre of the discussion is the legislative and policy framework that governs SETA appointments. The department’s position is that it has been implementing the framework as it currently stands, and that where the framework does not prescribe a particular requirement or process, that cannot be treated as non-compliance.

It is important to distinguish between non-compliance with an existing legislative requirement and an identified gap or opportunity to improve the legislative and governance framework.

That distinction is the department’s own, and it is where this story now sits: not a finding of wrongdoing, and not a clean bill of health either.

The review already under way

The department acknowledges that parts of the current framework can be strengthened and clarified, and says it is undertaking a broader legislative review. The amendments are aimed at governance, accountability, transparency and oversight across the SETA system, so that legislative requirements are clear, practical and capable of consistent implementation.

On the selection and appointment of candidates, the department told the Auditor-General that more candidates can meet the applicable eligibility requirements than there are positions available. In that setting, it said, the non-selection of an eligible candidate does not on its own demonstrate unfair exclusion or an irregular appointment process.

Candidates recommended for appointment were considered against the eligibility requirements in the Skills Development Act, 1998 (Act 97 of 1998) and the applicable policy framework. Where the review identifies opportunities to improve record-keeping, procedural clarity or the documentation of decisions, the department says these will be addressed through its ongoing governance improvement programme.

Verification, and the qualification question

The department also acknowledged the importance of completing proper verification and due-diligence processes for appointments. Appointment letters issued to accounting authority members carry conditions requiring criminal-record checks and qualification verification.

Questions were also raised about the qualifications of some accounting authority members. The department’s answer is that the Skills Development Act does not prescribe a specific qualification level, including NQF Level 7, as a statutory prerequisite for appointment to a SETA accounting authority. It added that it is nevertheless desirable for accounting authorities collectively to hold the qualifications, knowledge, expertise and leadership experience needed for effective strategic oversight and governance.

The department says it will continue reconciling the matters raised by the Auditor-General against the specific legislative requirements, the SETAs and the appointments concerned, so that conclusions on compliance rest on applicable law and verified evidence. In its assessment, the issues raised relate primarily to processes, documentation and opportunities for improvement rather than to evidence of material failures in the functioning of the SETA governance system.

What happens next

Should the completed audit process establish instances of non-compliance, misconduct, negligence or other wrongdoing, the department says the relevant circumstances and responsibilities will be assessed and appropriate corrective measures pursued in line with legislation, policy and due process.

The engagement with the Auditor-General continues, and the audit process on the matters raised has not yet concluded. The department says it remains committed to a governance framework for SETAs that promotes integrity, transparency, accountability, compliance and effective stewardship of public resources.

This report is drawn from the department’s statement as published by SAnews.

Source: SAnews (South African Government News Agency), Department engages Auditor-General on SETA board appointments, https://www.sanews.gov.za/south-africa/department-engages-auditor-general-seta-board-appointments