Higher education and training minister Buti Manamela has formally appointed new accounting authorities (AAs) across all 21 sector education and training authorities (Setas).
This signals a new governance cycle intended to restore institutional integrity and align the skills development system with national economic priorities.
The announcement follows the minister’s earlier intervention in August, when the services, construction, and local government Setas were placed under administration, citing persistent governance failures, procurement irregularities and board instability.
The newly constituted AAs are mandated to assume fiduciary responsibility for their respective Setas, oversee the appointment of interim CEOs and initiate recruitment processes for permanent executive leadership.
The department of higher education and training confirmed several CEO contracts were due to expire in October and transitional arrangements must be concluded without disruption to operational continuity. Chair appointments were pending and would be finalised by the department in consultation with the minister, it said.
In a written statement, Manamela said the appointments marked “the beginning of a new governance cycle” and were intended to reposition Setas to support job creation, industrialisation and inclusive economic growth.
The minister stated the selection process prioritised “competence, integrity and sectoral relevance,” and that the department would monitor performance through quarterly reporting mechanisms.
The intervention follows qualified audit outcomes for the three Setas placed under administration in the 2023/24 financial year. Forensic investigations commissioned by the Department and external oversight bodies revealed material breaches of the Public Finance Management Act, including unauthorised expenditure, inflated procurement contracts, and discretionary grant allocations made without board approval.
The Organisation Undoing Tax Abuse (Outa) previously flagged a R163m biometric contract at the services Seta that operated for four days before termination, and a R49m property acquisition by the construction Seta that contravened Treasury regulations.
The DA has raised concerns regarding the credibility of certain administrators appointed in August, citing prior forensic findings and unresolved disciplinary recommendations. DA spokesperson on higher education and training Matlhodi Maseko stated “appointments to critical skills development bodies cannot be a cosmetic exercise” and called for enhanced parliamentary oversight through the portfolio committee on higher education, science and innovation.
The department has indicated administrators will continue to submit monthly reports to the director-general, as required under the terms of their appointment. While the minister’s intervention has been welcomed by some stakeholders as a necessary corrective measure, the long-term efficacy of the reforms will depend on the ability of the new boards to enforce compliance, rebuild institutional capacity and insulate Seta from political interference.
The department has not yet released the full list of appointees.
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