Authority (Seta) fund investment schemes
13 February 2007
The financial activities of Sector Education and Training Authorities
(Setas) will this week form a focal point as the labour department will be
meeting with public entities at a workshop in Pretoria on Friday.
Labour Director-General Vanguard Mkosana told a Parliamentary media briefing
in Cape Town today (Tuesday) that the appearance last week of some Setas before
the Standing Committee on Public Accounts (Scopa) to answer charges of
maladministration had made it necessary for the department to review and
tighten its monitoring systems.
The Transport Education and Training Authority (TETA) is being investigated
for allegedly investing funds amounting to R245 million with asset manager,
Fidentia.
The Director-General pointed out that while the law allows Setas to invest
discretionary funds with properly registered banking or financial institutions
to prevent wastage and to benefit the Setas, the recent incidents have given
rise to the need to strengthen monitoring.
"After the Scopa hearings on the two Setas, it has become clear that there
are governance problems, and we need a stronger monitoring battery to oversee
and screen their financial activities. It has been an eye opener for us."
"As much as the law allows the Setas to invest discretionary funds as they
see fit, this however, should not shift their focus from their primary function
of training people," he said.
Doctor Mkosana said that Friday's workshop would focus on the general state
of skills in the country, with the aim of synchronising the work of these
public entities with that of the department in pursuit of the skills
development targets for the coming financial year.
Enquiries:
Zolisa Sigabi
Cell: 082 809 3878
Issued by: Department of Labour
13 February 2007
