A R630 million funding scandal at South Africa’s education and training authority has triggered a criminal investigation and renewed calls for sweeping reform, as the Democratic Alliance (DA) laid charges against senior SETA leadership.
The case, now formally registered at the Cape Town Police Station, focuses on the leadership of the Education, Training and Development Practices Sector Education and Training Authority (ETDP SETA), where millions intended for skills development, bursaries, and youth training remain unaccounted for.
The explosive allegations have reignited concerns about governance failures, financial mismanagement and systemic inefficiencies within the SETA framework, a system originally designed to bridge the gap between education and employment but now widely criticised as failing to deliver meaningful outcomes.
President Cyril Ramaphosa has reinforced the urgency for reform, warning that the SETA system has become outdated and ineffective. He called for a full overhaul, insisting it be replaced with a more efficient structure that better aligns with South Africa’s economic and workforce needs.
His remarks follow mounting criticism over poor performance, inefficiencies and a persistent mismatch between training programmes and labour market demands.
Karabo Khakhau, DA national spokesperson said the party had moved to escalate the matter through criminal proceedings, arguing that the scale of the alleged losses demands urgent accountability.
“Today, the Democratic Alliance (DA) laid criminal charges against the SETA leadership following reports that more than R630 million in discretionary grants at the Education, Training and Development Practices Sector Education and Training Authority (ETDP SETA) has seemingly vanished.”
She said the leadership failures at ETDP SETA under Acting CEO Ms Nokukhanya Mafahla, former CEO Mrs Nombulelo Sesi Nxesi, and the Accounting Authority represent a serious breakdown in governance and warrant a criminal investigation under the Public Finance Management Act.
“Our charges outline serious governance failures, missing financial records, and potential violations of the Public Finance Management Act and anti-corruption laws,” she added.
Khakhau further emphasised that the ETDP SETA accounting officers had acted with gross negligence and intent, failing to prevent unauthorised, irregular, and wasteful spending, allowing losses linked to possible criminal conduct.
She added that they neglected to hold officials accountable for breaching the law or undermining internal financial controls and failed to maintain proper financial records in accordance with prescribed standards.
The party said the case is now in the hands of law enforcement, with investigations expected to proceed.
“The SAPS have opened the case, and we are now in possession of a CAS Number provided by the police. The case is open and will now move to assign an investigating officer,” she said.
It is also pushing for criminal consequences, including the recovery of funds and possible jail time for those found guilty.
“We demand a full criminal investigation, accountability for those implicated, and urgent steps to recover any lost public funds. Ultimately, we also call for jail time.”
The Portfolio Committee on Higher Education and Training is set to meet with the ETDP SETA in the second term to address the alarming allegations of financial mismanagement. Committee chair Tebogo Letsie said the session will also include the Auditor-General, aiming to examine how over R637 million reportedly spent by the SETA cannot be traced or accounted for. He expressed deep concern that such a significant portion of public funds has gone missing without accountability or action against the accounting authority.
The Sector Education and Training Authorities (SETAs) were established to address workplace training needs and alleviate the cost of upskilling entry-level employees through state-subsidised programmes. Letsie referenced President Cyril Ramaphosa’s recent remarks, highlighting that the SETA system is failing to meet expectations, reinforcing calls for urgent reform and oversight.
The Star
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