Statement by the Minister of Higher Education and Training on recertification and the new boards

The new mandate of the Department of Higher Education and Training

In terms of the Skills Development Act (1998), the Sector Education and Training Authorities (SETAs) are governed by an Accounting Authority. A SETA is thus established when it has a duly appointed board, an approved Constitution, a certificate to operate and a five year National Skills Development Strategy. The term of office of the SETAs, certified in 2005, expired on 31 March 2010. The Minister of Higher Education and Training extended the operation of the SETAs to 31 March 2011.

The main reason for the extension of the SETAs was due to a reprioritisation of Human Resource Development for South Africa and the establishment the Department of Higher Education and Training. The President established the Ministry and Department of Higher Education and Training, after splitting the functions of the former Minister and Department of Education to those of Basic Education and Higher Education and Training, and further transferring the functions of Skills Development from the Minister of Labour to the Minister of Higher Education and Training.

The medium term strategic framework of government 2010/11 to 2014/15 prioritises education, training and skills development as the apex of all the priorities. The President then allocated the following outcome of the Programme of Action of Government to the Minister of the Higher Education and Training: Ensuring the production of “A skilled and capable workforce to support an inclusive growth path”.

The Department of Higher Education and Training thus had to ensure that it was not business as usual and had to fix the human resources system of South Africa while continuing with normal administration of the functions. This is akin to “fixing the aero plane while in the air”. Some of the engagements and processes followed to ensure delivery of this mandate were:

  • Ensuring that the split of function from the former Department of Education and the Department of Labour are managed administratively so the Department of Higher Education and Training could be operational
  • Repositioning the National Skills Authority late in 2009
  • Launching the Human Resource Development Council under the leadership of the Deputy President, the setting up of structures to support the Council and the adoption of the Human Resource Development Strategy by March 2010
  • Tabling the Strategic Plan 2010/11 to 2014/15 for the new Department of Higher Education and Training in Parliament for approval
  • Tabling of the new proposed SETA landscape and the new five year National Skills Development Strategy 3 for public engagement and comment on 29 April 2010 and allowing sufficient time for engagement with the public, role players and other interested and affected stakeholders.

New beginnings

The new SETA landscape was announced by the Minister of Higher Education and Training on 11 November 2010. In the main 12 SETAs remain the same, 8 have minimal changes, and three had significant changes. The bases for the changed landscape was to ensure enhanced sector focus, ensure viability of all SETAs, consolidate the planning for the supply of skills, and to align with government and industrial growth strategies.

At the same time as the above processes were being dealt with, the following improvements were also set in motion:

  • Initiated a process to strengthen the SETA Sector Skills Plans (SSPs) by ensuring that it is the SETA itself that understands their environment and the needs of that environment so that they can develop a plan within the NSDS 3 to achieve their outcomes. The big change that was introduced was that there were no longer a one size fits all plan for all SETAs, but a customised needs based plan. SETAs were also encouraged to ensure that they consult with sector experts as to the needs of the sector. Further the department was required to ensure that the Sector Plans are consulted with affected government departments. The Human Resource Development Council also had a role in advising on the sector plans. This complex participatory process was time consuming, but necessary, and required new and innovative plans
  • Established the Quality Council for Trades and occupations to improve occupational qualifications against which learnerships and apprenticeship programmes are developed
  • Finalised a model and standard SETA Constitution as best practice guideline to improve accountability and performance of SETA boards.

All the above processes were not only necessitated because of the priority of education, training and skills to government and the nation but also because of some challenges that were identified. Important research and analysis that was done over the last five years focussing on ways to improve the efficiency and effectiveness of SETAs was taken into consideration. In particular the reports by the Human Sciences Research Council focussing on impact of the work of SETAs; and the research reports commissioned under the Presidency (the Singidzi report) and National Economic Development and Labour Council (NEDLAC). These reports highlight the key challenges with regard to the SETAs and provide extensive recommendations which were to date not implemented.

Some of the challenges identified include, but are not limited to:

  • diffused focus and multiple objectives
  • uneven governance, management, administration, financial management and inefficiencies, planning and service delivery across SETA
  • difficulties in addressing cross-sectoral skills development and training requirements
  • uneven performance across SETAs
  • negative public perceptions, including clarity on the role of SETAs
  • the context of the new Department of Higher Education and Training (DHET) require alignment across institutions and SETA’s with renewed focus, and relevant programmes for post school beneficiaries

New governance

To address issues of governance, the department engaged intensely with SETAs, other key stakeholders and various constituencies, so that the new standards of governance were incorporated into the Constitution of every SETA. Indeed, the buy in that the department received from this process was overwhelming. This certainly heralded a new beginning, and an era of continuity and change, for improving the functioning of the SETAs. 

By approving the SETA Constitutions, the appointment of independent chairpersons, appointment of the two additional Ministerial appointees and the appointing of constituency nominees, a strong platform for governance in the SETAs over the next five years will have been established. The Constitutions will ensure that the consistent governance standards across the 21 SETAs are achieved, and that this aligns to best practice standards. Boards in the SETAs must maintain strategic focus and refrain from spending hours discussing procurement or operational management issues. The SETA board, as the Accounting Authority, must become increasingly professional.

We believe that there is no contradiction between the stakeholder representative model and professionalisation of SETA Boards. The Minister believes that SETAs will become more efficient through: 

  • The introducing of independent chairpersons
  • Limiting the number of board meetings to a reasonable number
  • Reducing the size of boards
  • Participation of the government and Ministerial appointment to the SETA Boards
  • Having a standard remuneration rate for board and committee members
  • Holding accountable board members who do not carry out their duties as required
  • The Minister and Cabinet’s participation in the appointment of SETA CEOs, in line with similar practices in other public entities
  • Ensuring the members of the board and the management of a SETA do not participate in any tender processes where they may have an interest.

Effective from 1 April 2011, the Minister of Higher Education and Training has approved the constitutions of almost all the SETAs and has finalised the appointments to the new SETA Accounting Authorities, including the new independent chairpersons. All SETAs are now certified to function for the next five years, from 1 April 2011. 

Conclusion

The new SETA landscape, sector strategy, national skills development strategy, certification, composition, Constitution and governance is a product of long and intense consultation not only with SETAs, but with the National Skills Authority and the leadership of organised business, organised labour, organised community, government and experts.

The Minister would like to congratulate all the newly appointed members and chairpersons of the SETA Accounting Authorities, and would further like to welcome them to the “New Beginning”. Attached in appendix A is a list of the chairpersons, and the complete list of all members of all Accounting Authorities will be published in a Government Gazette on Friday, 8 April 2011.

The Minister would like to place on record his appreciation to the outgoing SETA boards and the chairpersons, especially in holding the reins during this transition phase and cooperating and engaging with the new beginnings.

Appendix A

Independent Chairpersons of SETA Boards

1. Agri SETA – Professor Gilingwe Mayende
2. Bank SETA – Mr Martin Mahosi
3. Construction SETA – Mr Themba Mhambi  (under administration)
4. Chemical Industries Education & Training Authority (CHIETA) – Ms Nolitha Fakude
5. Energy and Water SETA – Mr Senzeni Zokwana
6. Education, Training, & Development Practices SETA (ETDP) SETA - Ms Sirley Mabusela
7. Financial and Accounting Services (FASSET) -  Ms Tsakani  Matshazi
8. Fibre Processing and Manufacturing SETA – Mr Sipho Ngidi
9. Food & Beverages Manufacturing Industry (FOODBEV) SETA – Mr Fankie Komape
10. Health & Welfare  (H&W) SETA – Ms Nozipho January-Bardill
11. Insurance Sector Education & Training Authority (INSETA) – Mr Mzimkhulu Msiwa
12. Local Government  (LG) SETA – Mr Duma Nkosi
13. Manufacturing, Engineering & Related Services Education and  Training Authority (MERSETA) – Ms Phindile Nzimande
14. Media Information and Communications Technology (MICT) SETA – Ms Zandile Mbhele
15. Mining Qualifications Authority – Mr Thabo Gazi
16. Public Service Sector Education and Training Authority (PSETA)  - Ms Koko Mokgalong- Mashego
17. Safety and Security Education and Training Authority (SASSETA) – Mr Abbey Witbooi
18. Services SETA – Dr Sihle Moon
19. Transport SETA (TETA) – Mr June Dube
20. Tourism and Hospitality SETA (THETA) – Ms Brenda Madumisa
21. Wholesale and Retail SETA (W&R) – Dr Thami Mazwai

Enquiries:
Gwebinkundla Qonde
Tel: 012 312 5313
Cell: 082 705 9457
E-mail: Qonde.g@dhet.gov.za

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