lerato mpembe | August 4, 2025
The organization undoes tax abuse (OUTA) The organization has issued a warning about what is called broad inappropriate management and corruption in the Sector Education and Training Institutions (SETAS) in South Africa, claiming that billions of public funds aimed at developing young people's skills are being ignored while being ignored.
In a detailed report released as a formal appeal to the newly appointed Minister of Higher Education and Training, Outa pointed out “serious governance failures” within the SETA structure, identifying the Construction Education and Training Agency (CETA) as a key concern. Watchdog warned that unless immediate measures are taken to clean up the R21 billion sector annually, the credibility of the country's overall skills development framework could collapse.
“The SETA model is failing. While these agencies are bleeding public funds, the young people they should serve are stuck,” Outta CEO Wayne Duvenage said.
Billions of people are mismanaged while the centre is falling apart
SETA is funded through Skill Development Collection, a mandatory payroll tax aimed at promoting training and uplifting across multiple industries. However, the Outa findings suggest that instead of strengthening real skills among young South Africans, many SETAs are engaged in questionable procurement practices, wasted spending, and retaliation against whistleblowers.
An important example cited is Services Seta. Outa questioned how hundreds of millions of rand were spent on the Skills Development Center. Photographic evidence and site inspections revealed aging buildings in several states, raising concerns about infrastructure planning, delivery and surveillance.
In the case of Inseta (Insurance Sector Education and Training Bureau), Outa criticized the R18 million contract awarded to clean historic learner records. The contract was flagged for suspected links between the awarded company and former board members, suggesting possible conflicts of interest.
CETA is at the heart of forensic reporting and retaliation
Outa's most powerful focus was on CETA. There, two forensic reports revealed terrible evidence. • A 2019 report by Gobodo's Forensic and Research Accounting commissioned by the Ministry of Higher Education and Training (DHET) highlighted the damages of staff who raised irregular bidding procedures and concerns. The report recommended disciplinary action against officials and raised serious red flags, but the findings were not made public.
Despite being handed over to then-manister Blade Nijmande in 2021, Duja's report remains buried. Outa has reviewed two legal opinions related to the report, criticizing the lack of transparency and calling it an “inhumanity on accountability.”
“When R18.9 million is spent on forensic investigations and reports get buried, it's not a fault, it's a light empty for the public,” said Rudie Heyneke, senior project manager at Outa.
Outa also revealed that one whistleblower who first exposed the procurement issues within CETA has been cleared and revived.
Outa demands emergency action and surveillance
Outa writes that he would require Minister Buti Manamela to have a formal meeting and immediate intervention. The Higher Education and Training Department confirmed the receipt of the request through its spokesman Mandla Tshabalala.
“It has only been a few days since the appointment of Minister Buti Manamera, so at this time we do not have all the information. We are still collecting reports from SETAS.”
Outa will load its full documentation, including Duja Draft Report, audit summary and internal communications, into the Congressional Portfolio Committee on Higher Education and Training, calling for comprehensive research and emergency reform.
System of Crisis: Call for Reform
The SETA system, once envisioned as a bridge between education and employment, is under increasing scrutiny. Beyond CETA, Outa has found irregularities in MICT SETA (media, information and communications technology) including expensive bids, abandoned training centers, and service providers allegedly linked to board members or executives.
“We want a candid conversation with Minister Manamera,” Duvenage said.
• R21 billion for SETA funds distributed annually without proper monitoring. •Forensic reports are ignored or kept secret despite dealing with findings.
“Disclaimer – the views and opinions expressed in this article are the views of the author and are not necessarily those of the Bee Room.”
