The Department of Higher Education and Training (DHET) respects the constitutional mandate of the Auditor-General of South Africa (AGSA) and regards the Auditor-General's work as an important component of strengthening accountability, good governance and public confidence in the Post-School Education and Training (PSET) system.
The Department has taken note of matters raised by the Auditor-General in relation to the appointment of Accounting Authority members at Sector Education and Training Authorities (SETAs). It is important, however, to emphasise that the audit process in relation to these matters has not yet been concluded. The Department and the Auditor-General are continuing to engage on the issues raised, including providing detailed explanations and clarifications where these have been required.
Accordingly, the matters currently being reported should not be understood as the Auditor-General's final audit conclusions. They remain subject to ongoing engagement between the Department and AGSA, and the Department does not wish to pre-empt the outcome of that process or legitimise allegations that have not yet been finally determined.
A central issue arising from these engagements is the applicable legislative and policy framework governing SETA appointments. The Department has been implementing the legislation and policy framework as it currently stands. Where the existing framework does not prescribe a particular requirement or process, the Department cannot be regarded as having failed to comply with a legislative prescript that does not currently exist.
The Department acknowledges, however, that the current legislative and policy framework contains areas that can be strengthened and clarified. It is precisely for this reason that the Department is undertaking a broader legislative review process, including consideration of amendments aimed at strengthening governance, accountability, transparency and oversight across the SETA system. The Department welcomes proposals that can improve the governance framework and ensure that legislative requirements are clear, practical and capable of consistent implementation.
It is therefore important to distinguish between non-compliance with an existing legislative requirement and an identified gap or opportunity to improve the legislative and governance framework. The latter should not automatically be characterised as an irregularity in the implementation of the law as it currently exists.
The Department has also engaged with the Auditor-General on matters concerning the selection and appointment of candidates. In a competitive appointment process, it is possible for more candidates to meet the applicable eligibility requirements than there are positions available. The fact that a number of eligible candidates are not ultimately appointed does not, in itself, demonstrate that they were unfairly excluded or that the appointment process was irregular.
Candidates recommended for appointment were considered against the eligibility requirements applicable under the Skills Development Act, 1998 (Act 97 of 1998), and the relevant policy framework. Where the review identifies opportunities to improve record-keeping, procedural clarity or the documentation of decisions, these will be addressed as part of the Department's ongoing governance improvement programme.
The Department further recognises the importance of completing appropriate verification and due-diligence processes in relation to appointments. Appointment letters issued to Accounting Authority members included conditions requiring the successful completion of criminal-record checks and qualification verification. This conditional approach was adopted as a risk-mitigation measure and provided for an appointment to be revoked should subsequent verification produce an unfavourable result.
The Department will continue to examine any individual cases raised during the audit process and will take appropriate action where an actual deviation from an applicable legal or governance requirement is ultimately established. Where information emerges that may affect the eligibility or continued suitability of an appointed member, the matter will be considered in accordance with the applicable legal and governance framework.
The Department has also noted questions concerning the qualifications of certain Accounting Authority members. It is important to clarify 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 is nevertheless desirable that Accounting Authorities collectively possess the qualifications, knowledge, expertise and leadership experience necessary to provide effective strategic oversight and governance.
The Department will therefore continue to reconcile the matters raised by the Auditor-General against the specific legislative requirements, SETAs and appointments concerned. This is necessary to ensure that conclusions about compliance or non-compliance are based on the applicable law and verified evidence rather than on assumptions or requirements that are not currently contained in the legislative framework.
The issues raised during the current engagement are, in the Department's assessment, primarily matters relating to processes, documentation and opportunities for improvement rather than evidence of material failures in the functioning of the SETA governance system. Nevertheless, the Department takes every governance concern seriously and will continue to address the matters raised in good faith and in accordance with the applicable framework.
The Department is also clear that accountability remains essential. Should the completed audit process establish instances of non-compliance with applicable requirements, misconduct, negligence or other wrongdoing, the relevant circumstances and responsibilities will be assessed and appropriate corrective measures will be pursued in accordance with legislation, policy and due process.
Our understanding is that the discussions and clarifications between the Department and the Auditor-General remain ongoing and that no final conclusion has yet been reached on all the matters under consideration. The Department has provided detailed explanations to the Auditor-General on the matters requiring clarification and will continue to cooperate fully with the audit process.
Where AGSA identifies opportunities to improve governance, the Department will consider these carefully, including through the legislative and policy review currently underway.
The Department remains committed to ensuring that SETAs operate within a governance framework that promotes integrity, transparency, accountability, compliance and effective stewardship of public resources. This commitment includes complying with the law as it currently stands, addressing gaps in the existing framework through appropriate legislative reform, and taking corrective action where actual non-compliance is ultimately established.
The Department's ongoing legislative review is an important part of strengthening the SETA governance architecture.
Enquiries:
Cornelius Monama Head of Communication
Department of Higher Education and Training
Tel: 082 578 4063
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