M Mdladlana on takeover of MAPP Seta

Sweeping changes as Labour Ministry takes over troubled
Seta

10 October 2007

In a tough action against badly performing Sector Education and Training
Authorities (Seta's), the Ministry of Labour today (Tuesday) took control of
the Media, Advertising, Packaging and Printing (MAPP) Seta.

Announcing the takeover, Labour Minister Membathisi Mdladlana told reporters
at his Pretoria official residence that audit firm Price Waterhouse Coopers has
been appointed to run the MAPP Seta's affairs with immediate effect over the
next six months.

A Government Gazette stating the suspension of the MAPP Seta board, and
outlining the powers of the appointed administrators, was published earlier
today.

In terms of the arrangement, Labour Director-General Vanguard Mkosana will
be responsible for overseeing the day-to-day operations of the Seta under the
appointed administrators as they will be helping bring the Seta back to
normality.

The MAPP Seta, the first ever Seta to face this demise, has for some time
been in the news over negative audit reports involving gross financial
mismanagement and irregular expenditure of funds amounting to over R30
million.

"I have been reluctant to take this route but had to, after seriously
considering the National Skills Authority’s recommendations and pleas to
intervene."

"The assistance that my officials provided to the Seta, including numerous
meetings and correspondence, failed to produce the results that we expected,"
the Minister said today.

Explaining the lengthy process that it has taken to reach the decision, he
said legal aspects and other administrative matters had to be considered prior
to any action.

"I hope that within the next three months we will advance ensuring that
qualifying leadership from the sector will emerge and begin assuming
control."

"We are also considering a forensic audit to assist us to get to the bottom
of some of the problems that have been plaguing this Seta," Minister Mdladlana
said.

Meanwhile, the Minister has cautioned about six other Setas to "pull up
their socks" or face tough action.

These are the Construction, Tourism, Energy, Local Government, Public Sector
and Health & Welfare Setas which have not been able to obtain clean audit
results.

He said bad results for these Setas were a "disgrace" considering huge
construction projects, Eskom's recapitalisation programme as well as tourism
ahead of 2010.

"The Nationals Skills Authority has some serious thinking to do about these
Seta's and I want advice sooner rather than later. South Africa can no longer
wait for skills development while some Seta board members and chief executives
appear not to be doing their work," he said.

Enquiries:
Zolisa Sigabi
Cell: 0829063878
E-mail: zolisa.sigabi@labour.gov.za

Issued by: Department of Labour
10 October 2007
Source: Department of Labour (http://www.labour.gov.za)

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