The Democratic Alliance has laid criminal charges after more than R637 million in skills development grants vanished without a trace at the Education, Training and Development Practices Sector Education and Training Authority (SETA).
DA MP Karabo Khakhau filed the charges at Cape Town Police Station on Friday following findings by the Auditor-General that R637,6 million in discretionary grants from the 2024-25 financial year could not be substantiated due to missing records.
The DA said the missing funds were intended for critical skills development programmes, including bursaries, internships, and work-integrated learning opportunities for young South Africans.
According to the Auditor-General’s findings, the SETA suffered from poor record-keeping, inaccurate financial reporting, and a lack of disciplinary action against officials involved in wasteful spending. The DA has demanded that SETA leadership appear before Parliament to explain the alleged mismanagement.
The missing grants scandal emerged alongside a separate R15 million tender controversy involving an office space that has remained unused for over a year. The tender was allegedly awarded despite missing required documentation, including an occupancy certificate.
The Public Servants Association said the disappearance of the funds represents a catastrophic failure of governance and a betrayal of South Africans who rely on SETAs to drive skills development, job readiness, and economic opportunity.
The association said the funds are meant to empower unemployed youth, educators, education support staff, and community development workers.
The PSA raised concerns about emerging allegations pointing to a collapse in internal financial oversight, irregular actions by senior management, defiance of board instructions, the suspension of officials who attempted to enforce compliance, and failure to safeguard public funds despite repeated warnings.
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The association is demanding that the Minister of Higher Education and Training urgently order an independent forensic investigation into the missing funds and all related transactions. It called for a full public report detailing the extent of financial losses and steps taken to recover funds.
The PSA further demanded that implicated officials be suspended, including those who interfered with internal investigations, and that protection be ensured for whistleblowers at the SETA.
Minister of Higher Education Buti Manamela has launched an investigation and instructed the department to urgently release a report on the matter. The ETDP SETA’s acting CEO is Nokukhanya Mafahla.
The PSA warned that continued mismanagement of public funds in the SETA environment undermines national skills development priorities at a time when unemployment remains at crisis levels.
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