According to the Services Sector Education and Training Authority (Services SETA), R2.8 billion in legacy commitments has been recovered for reinvestment in education and skills development after a period of 12 months in administration by administrator Lehlogonolo Masoga.
The turnover involved a broader turnaround programme to address the organisation’s financial and operational challenges.
Based on the available information, the administration has concentrated on reviewing legacy commitments, improving controls and directing funds towards skills-development and infrastructure.
R2.8 billion in legacy commitments reviewed
The major part of the turnaround programme involved a review of legacy commitments.
The review focused on finding out whether outstanding commitments could be honoured and whether some of the old transactions should be cancelled or allowed to lapse.
The purpose of the review was to free up funds for new skills-development priorities.
The review involved legal and accounting analysis on 1,434 transactions, including transactions tracing back several years.
Funding redirected towards skills development
The recovered funds have been associated with a number of education and training initiatives.
Reported fund allocations include:
R905 million for TVET colleges
R559 million for universities
R90 million for Community Education and Training colleges
R1.3 billion for a national bursary programme
Funding for a 20,000-internship programme
R103 million linked to a partnership with Takealot
R84 million for a Wits University entrepreneurship partnership
R100 million towards the UCT ARISE skin-care research facility
The various allocations cover a range of education, training, internships, entrepreneurship and research fields.
Greater focus on young people
Youth development has become a major focus area associated with the Services SETA turnaround.
A reported 20,000-internship programme will provide opportunities for unemployed young people to gain workplace exposure through participating host employers.
Another announcement involves a three-year partnership with Takealot that aims to create 20,000 training and job opportunities for unemployed youth.
A large programme involves bursary funding, with Services SETA reporting a R1.3 billion bursary programme to support 15,000 students.
The various programmes are relevant to young South Africans seeking qualification, workplace-experience and skills opportunities.
Governance changes form part of the turnaround
The financial turnaround was accompanied by changes within the organisation’s internal governance and management systems.
Key oversight structures have been reconstituted while other measures were taken to deal with internal-audit findings and improve financial management in general.
A new Chief Financial Officer has been appointed as part of the reported changes during the administration period.
The organisation has appointed a Project Management Unit to deal with problems with the implementation of projects.
This unit has dealt with project delays, learner certification and stipend-payment problems.
Learner payments and certification remain important
While the financial turnaround is a major step forward, the actual delivery for learners depends on the successful implementation of programmes.
It is important for learners to have training opportunities to start on schedule, stipends to be processed correctly and qualifications or certificates issued following the completion of required requirements.
Services SETA has acknowledged problems involving project delays, learner certification and stipend payments.
These factors are important since funding is by no means proof that a learner will benefit from a specific programme.
The success of the turnaround will depend on the extent to which the SETA can turn its improved financial position into the implementation of programmes.
Administration extended beyond the first year
The administration period will extend beyond the first year of operation.
Services SETA has announced that Masoga’s term as administrator has been extended for a further five months up to 19 January 2027.
The extension will allow the organisation to continue the work that it has started during the first 12 months.
The administration will continue to focus on maintaining financial controls, improving governance and addressing outstanding operational problems.
What happens next?
The next phase will be vital for Services SETA as the focus moves beyond reviewing old commitments.
The organisation now needs to take its funding and turn it into opportunities for learners, students and unemployed young people.
That requires the efficient implementation of bursaries, internships, workplace training and other skills-development programmes.
The most important measure for South African youth will eventually be whether these funds create real training opportunities, workplace experience, qualifications and improved access to jobs.
The R2.8 billion figure therefore constitutes an important step in the financial restructuring, but it is by no means proof of the success of each specific programme.
Source
Source: Department of Higher Education and Training; Services SETA administration and progress information.
Editorial Policy
This article was independently written from information concerning the Services SETA administration and its reported financial and operational turnaround. Financial figures and programme allocations are presented as reported by the relevant institutions.
Corrections Policy
Should it be found that any information is inaccurate or changes, it will be reviewed against available official information and corrected if necessary.
Disclaimer
The R2.8 billion figure refers to the recovery or reduction of legacy commitments and should not be seen as R2.8 billion in newly generated revenue. Individual programmes and allocations may have various conditions, implementation periods and eligibility criteria.
