Executives of the ETDP SETA were hauled before Parliament on Wednesday after admitting that R637.6 million in grant spending could not be substantiated during the 2024/25 audit, with the shortfall attributed to “accounting and human error”. The Portfolio Committee on Higher Education and Training heard the Auditor-General had been unable to verify at least seven transactions worth R42 million due to missing source documents.
The ETDP SETA R637 million missing figure relates to discretionary grants earmarked for bursaries, internships and work-integrated learning. The Auditor-General issued a qualified audit opinion after the entity failed to produce records to support the outflows.
Why the money could not be traced
Senior finance manager Khawedzo Ngaledzani told MPs the supporting documents required by the Auditor-General had been unavailable because of an “accounting and human error” in how records were filed.
MPs from the ANC, DA, EFF and MK Party rejected that explanation. Several said the pattern pointed to possible criminal conduct rather than a paperwork oversight.
Acting CEO Nokukhanya Mafahla and former CEO Nombulelo Sesi Nxesi were both called to account for governance lapses during the audit period.
DA lays criminal charges
DA MP Karabo Khakhau has laid a criminal complaint under the Public Finance Management Act against the ETDP SETA’s accounting authority and senior executives.
She accused the governing party of protecting its appointees.
“Increasingly, the entire SETA system looks to be a massive scheme for misappropriation where billions disappear, and ANC cadres are appointed to the highest levels,” Khakhau said.
Khakhau has also called on Higher Education Minister Buti Manamela to disband the ETDP SETA’s financial division and commission an independent forensic probe.
A Special Investigating Unit referral is reportedly under consideration.
What is at stake
The R637 million in question was meant to fund skills development programmes aimed at young South Africans at a time when the youth unemployment rate sits above 45%.
Every rand unaccounted for represents lost bursaries and internships in a labour market already under strain.
