Analysis of SETA performance & challenges

Higher Education, Science and Innovation

19 April 2011
Chairperson: Adv I Malale (ANC)
Share this page:

Meeting Summary

Representatives from each SETA, new Chairpersons, Chief Executive Officers and in certain instances Administrators, were invited by the Chairperson to present their challenges to the Committee. Problems noted included the funding of SETAs, governance, the imposition of the SETA constitution at short notice, the composition of SETA boards, stakeholder expectation, high dropout rates, the 10% administration cap.

Members were concerned that SETAs were not as effective as they should be and were not providing the type of training and learnership opportunities that they should. The cost of training through the SETA system was often too expensive and targets were too low. They wanted to see the eradication of short courses and urged SETAs to establish partnerships with FET colleges and universities.  

The Chairperson emphasised that the Committee was being pro-active in this matter and would hold both the Ministry, as well as the SETAs themselves, accountable for their forthcoming performance. The creation of an inter-SETA forum was proposed.

Minutes
The Chairperson invited representatives from the SETAs to address the Committee on their problems and challenges. The Minister and Deputy Minister of Higher Education and Training were both invited to this sitting of the Committee, but were unable to attend.

Mr Gwebinkundla Qonde, Acting Director General, Department of Higher Education and Training addressed the Committee. SETAs were supposed to be reconstituted by 1 April 2011. As a result of certain challenges, 20 out of 21 SETAs now had new Chairpersons. The Construction SETA did not have a Chairperson and was under administration. There was a need to review the methodology of SETAs to enable them to be more effective.

The representative from the Agriculture SETA noted that emerging farmers and land reform recipients were not able to pay the levy. Consequently, “the levy of the few serves the multitude”.

The representative from the Bank SETA stated that the organisation was unable to pay back grants due to the information not being available from the Department of Higher Education and Training.

Mr Themba Mahambi, the Administrator of the Construction SETA, noted that each SETA operated differently, and that within each SETA certain sectors cornered the resources available. Funding and financial models need to be reviewed and made uniform.

The representative from the Chemicals SETA raised issues of governance in SETAs.

The representative from the Energy and Water SETA, noted three problem areas. Firstly, governance failures were notable in terms of leadership, strategic planning and financial management. Secondly, leadership was lacking, especially related to planning. Thirdly, it was noted as an example, that there were unfunded mandates to train employees in the water sector. Most water employees worked for municipalities who paid their levies to the Local Government SETA. These funding mechanisms needed attention.

The representative from the Financial and Accounting Services SETA echoed the Bank SETA’s concerns about government information and the payments of grants. Secondly, as an example, it was noted that accountants normally do not work in only one sector which affected the funding of those projects. Thus, professions as opposed to sector training should also be investigated. Positively, the National Skills Development Strategy III (NSDS III) allowed for catalytic funding for certain projects. High dropout rates at university were also noted as an extreme challenge.

The representative from the Education Training and Development Practices SETA noted that this SETA was slightly different as it dealt with very disparate bodies around the country. There was not enough engagement between the parties involved, the SETAs, and the Department. There was a delay in terms of payment of grants. Concerns about the adoption of the constitution were also raised.

The representative from the Fibre Processing and Manufacturing SETA noted that this SETA was an integration of different SETAs which would be problematic in terms of organisational cultures.

The representative from the Food and Beverage Manufacturing Industry SETA
 commented that SETA Chairpersons were unsure about their positions as a result of new legislation and the SETA constitution. Another representative noted that adequate buy-in from the participants in this SETA was not possible due to the fact that there was a short time to implement this, due to re-licencing concerns.

The representative from the Health and Welfare SETA alluded to the fact that it seemed as if there were a great deal of funds available. However these funds were already allocated and there was little money for further projects. This was a growing sector, which in turn meant a growing need to develop skills.

The Chairperson noted that all monies should be accounted for in Parliament and that the SETA should be able to show who and where these monies were going to.

The representative from the Insurance SETA noted that transformation in this sector was a problem. However the SETA was committed to transformation. Brokers were being prepared for their exams.

The representatives from the Media, Information and Communication Technology SETA noted that this sector was a key driver in the economy. No problems were identified on an operational basis. However there were problems with the new model constitution and the composition of the Board. Also noted was that the SETA’s Service Level Agreement and Skills Plan had not yet been approved by government. A more open engagement with the Department of Higher Education and Training was also sought. Occupational training was also identified as a problem, namely the fact that some people were not able to progress into tertiary education. Students who dropped out of courses, for example in year two of a three year course, should be able to complete their qualifications through the SETA system and through their employment and learnership programmes.

The representatives from the Local Governance SETA commented that regular democratic municipal elections influenced the SETA’s performance. Managing the contracts of those elected representatives was a challenge. Service delivery protests also affected the SETA and their work. The perception of employees and representatives at the local level was not good, as opposed to those at provincial and national level. Financial management was emphasised as a challenge for this sector. Technical skills, namely in terms of artisans, was also a challenge at the local level.

The representative from the Manufacturing and Engineering SETA, Raymond Patel, Interim CEO, noted that NSDS III required a new driving mechanism. The 10% administration fee could never sustain the running and management of the work of this, and possibly other SETAs. As an example, the creation of the qualification of 4 200 artisans, which the SETA does, cost approximately R840 million. Unfortunately the levy income was only R800 million.

Mr Patel also addressed the issue of stakeholder expectation. Stakeholders believed that the money collected actually belonged to the employer and the employee (being the unions). This mindset was not conducive to job creation and skill development in South Africa. Stakeholders were also expecting too much of the SETAs.

Mr Patel raised the issue of boards where the board members brought their own agendas to board meetings. ‘Alternates’ were also contentious and should be done away with.

The representative from the Mining Qualifications Authority SETA noted that programmes were sometimes not acceptable to the mining houses and the mining industry. Further engagement with mining houses and FET colleges was necessary. The other problem was the recognition of prior learning in the industry. Many employees had been employed in the industry for a lengthy period of time but were not able to be promoted because they had not achieved certain qualifications.

The constitution was also raised. In terms of the Mine and Health Safety Act, the SETA was unable to reconcile the new constitution with the SETA on one or two key aspects. This would be addressed with the Department.

The representatives from the Public Service SETA noted that this was a new SETA having previously been part of the Department of Public Service and Administration. Funding problems were identified in terms of collecting levies from government departments. Governance problems, especially related to the mismanagement of funds previously were identified in the past. The Special Investigating Unit was also involved. The SETA was previously placed under administration, however the SETA was being turned around. Systems had been put in place and policies had been adopted. As of 1 April 2011 the SETA was operationally independent from the Department. A new management structure had been put in place.

A ministerial task team had been established especially to investigate the funding model. An appeal was made to the Ministry that the task team be convened as soon as possible in order to deliver on the SETA’s mandate.

The representative from the Safety and Security SETA echoed some other SETA concerns regarding funding models as well as the new constitution. Various new mandates were created, unfortunately levies had not been collected or funding provided to see to those mandates. Enforcing compliance in terms of levy collection at entry level was difficult. Learnerships were difficult to establish in the legal fraternities, but this had been seen to by working with the legal fraternity.  Challenges in the South African Police Service and Metro Police training also existed, especially because these entities paid a small (er) levy than the private sector.  Additionally opening offices in different provinces was hampered by the 10% administration rate and funding challenges of the SETA.

The representatives from the Services SETA noted that corporate governance was a problem and that previously the ‘tail had wagged the dog’ and that boards and accounting authority were not providing only an oversight and strategic leadership role as they should. A court case was ongoing about the standard constitution and various members of the previous board and certain employees which was sub judice.

Massive resignations had hampered the SETA’s ability to function. Operationally there were a great many SMEs that were not above the threshold which would make it difficult to accommodate them in the SETA system. The New Venture Creation project had a success rate of only 10%. A more positive model was being developed to hopefully manage this process in a better way. The knowledge sector needed to be emphasised with the Higher Education and Training Sector.

The representative from the Transport SETA, Mr June Dube, the Chairperson, noted that levy payers viewed this levy as a tax. Stakeholders needed to be educated that this was not in fact true. It was also noted that the unregulated ‘mafia style’ taxi industry did not pay levies, however the Transport SETA still had a mandate to train in this arena. Artisan training was also a significant problem. State owned enterprises such as Transnet and SAA had stopped training artisans post 1994. 

The CEO of the Transport SETA noted that training needs were very diverse. The Transport SETA received a R7 million grant for training in the taxi industry which unfortunately only trained 30 drivers in each province per year (an approximate cost of R25 000 per driver). Artisans and aviation training needs were expensive and especially pilot training was a problem because it was so expensive. There was also no physical presence in each province.

The throughput rate of 52% was below what was expected. Labour market data was questionable and usually not credible (with the exception of data from StatsSA). This has resulted in under investment in certain areas, and over investment in others. A suggestion was made that the levy system should be changed and reviewed.

The representatives from the Culture, Arts, Tourism, Hospitality and Sport SETA echoed the earlier comments about funding and levy collection in this sector, as well as Departmental data that had hampered the performance of this SETA and the payment of grants. Additionally, this SETA had to coordinate its activities with four national government departments and this affected the payment and collection of the levy. There was also no physical presence in each province.

The representative from the Wholesale and Retail SETA noted that getting wholesalers and retailers, especially small retailers, involved in training was a problem. Strategic plans and service level agreements needed to be approved by Parliament as soon as possible. A problem was that fuel retailers had not been fully incorporated into this SETA where training could not be provided and levies could not be collected.

Discussion
The Chairperson noted that legislation was being developed that had taken into account some of the representatives’ issues and concerns.

Mr Radebe (ANC) pointed out that many SETAs had interlinking problems. However, co-operation and communication between the SETAs needed to be established to address some of those concerns.

An ANC Member commented that as a politician he would always favour participatory democracy with regard to the composition of the board. The Member echoed the fact that SETAs should synergise with one another and establish presences in all provinces, concentrating on rural areas. The Member supported some of the SETA grievances and wanted to encourage the representatives that these concerns were being raised with the Minster and the Ministry.

Mr van der Westhuizen (DA) was concerned and noted that his political party had consistently advocated abolishing SETAs. There was a lack of ‘backbone’ from the SETAs in regard to the new constitution that SETAs had been compelled to adopt. The cost of training through the SETA system was often too expensive and not effective. More money than ever was being spent on training but the outputs were less than in the 1960s and 1970s.

Mr van der Westhuizen wanted to know to whom the CEOs were reporting. It was also noted that corporate governance issues were serious concerns in the SETA landscape. Finally, sectoral skills plans were not up to scratch. Transversal skills were not being addressed by SETAs.

Dr Kloppers-Lourens was worried about the high rates of staff turnover in SETAs. Related to that point, he wanted clarification from the SETAs about whether or not huge severance packages were paid out to ex-employees and requested more details on the ongoing court cases.

Ms Vukuza (COPE) noted that problems seemed to be the same, but that the people in those roles in SETAs were different. Ms Vukuza echoed Mr Radebe’s call for collaboration between the SETAs and a forum that could voice their differentiation. SETAs had a bad reputation because they did not walk together.

Ms Vukuza commented that the ongoing problem of short courses was not addressed by any of the representatives. SETAs needed to be governed by values, the values of honesty, impartiality and objectivity and not politics. The National Skills Fund was also examined and Ms Vukuza queried why it kept on being funded when it consistently failed to spend its money.

Ms Nelson (ANC) queried the results that the SETAs were producing, and whether qualified people were being created or whether these funds were being used for cheap labour. Were workplace skills plans being monitored or were SETAs only looking at the numbers involved? SETAs were not providing experiential learning opportunities for graduates.

Ms Nelson emphasised that huge amounts of money were being spent and that these monies were seemingly not being responsibly spent. The Committee would hold SETAs accountable.

Mr S Makhubele (ANC) noted that in future SETAs would be held to account in terms of their results and that there would be no time for excuses. Targets in NSDS II were very low. However NSDS III had changed this and expectations were greater. Training should support productivity and career progression and short courses must be eradicated. NSDS III also clearly articulated the demands of transformation related to SETAs. SMEs needed to be contacted and brought into the fold of training programmes.

Mr Makhubele also emphasised that recognition of prior learning was something that needed attention from SETAs.

Mr Makhubele requested that any concerns that the representatives had should be brought to the Committee as soon as possible, and not only when they were called to Parliament.

The Chairperson thanked representatives for their presentations. The Chairperson noted that SETAs were statutory bodies accountable to the state. The Committee would consolidate representative’s concerns and present them to the Minister and the Ministry. If representatives had real concerns about elements of the constitution and the composition of the board they should have raised them before this Committee meeting.

The Chairperson stated that a thorough audit would be conducted for all SETAs and representatives would be held accountable. It was noted that SETA plans had not been approved because Parliament had in fact rejected the Department’s plan. SETAs must establish partnerships with FET Colleges and Universities. The annual performance plans of the Ministry and the SETAs need to work in harmony.

Members of the board who exchange tenders would be eradicated. Parliament would in future examine the conduct and performance of SETAs with an ‘eagle-eye’.

The Chairperson noted that all plans must take into account national strategies, for example the New Growth Path, the NSDS III, amongst others or else these plans would be rejected in May 2011. Targets and outcomes would be examined.

It was noted that a clean audit was compliance and not a boasting matter. Every SETA should comply and have a clean audit. Clear compliance (not monetary) and substantive performance should be focussed on.

The Ministry was requested to address certain SETA concerns, especially the creation of an inter-SETA forum. The Committee would hold the Minister and the Ministry accountable.

The Committee would investigate the performance of SETAs on a quarterly basis.

Meeting report

The Chairperson invited representatives from the SETAs to address the Committee on their problems and challenges. The Minister and Deputy Minister of Higher Education and Training were both invited to this sitting of the Committee, but were unable to attend.

Mr Gwebinkundla Qonde, Acting Director General, Department of Higher Education and Training addressed the Committee. SETAs were supposed to be reconstituted by 1 April 2011. As a result of certain challenges, 20 out of 21 SETAs now had new Chairpersons. The Construction SETA did not have a Chairperson and was under administration. There was a need to review the methodology of SETAs to enable them to be more effective. The SETA’s had to employ new methodologies in order to provide effective skills training and respond to the challenges that they faced.

 

The Chairperson asked for more clarity on the status of the Construction SETA.

 

Mr Qonde replied that it was under administration and the Administrator was present in the meeting. Parliament’s expectations would then become clear later on.

 

The Chairperson outlined the meeting as being an open session between Parliament and the SETA’s. The SETA’s should also inform Parliament as to the challenges that they faced.



Mr Jerry Madiba Chief Executive Officer (CEO) said that originally there were two components to the Agricultural SETA. There was the primary component, which had to do with agricultural produce, and livestock farming. The second component was on the processing of agricultural goods. These two components have since been rolled into one in order for farms to produce and process at the same time.   He noted that emerging farmers and land reform recipients were not able to pay the levy. Consequently, “the levy of the few serves the multitude”. 50%b of funds received

Ms Dimakhatso Seete, Head of Corporate Services for Bank SETA informed the Committee that she was representing the CEO. The organisation was unable to pay back grants to employers due to information that was outstanding from the Department of Higher Education and Training. 50% of the amount of money that was received by Bank SETA had to be paid to the employer in the form of a grant. The information received by Bank SETA from the employers had to be quantified with the information from the Department.

 

The Chairperson asked why the information was not forthcoming.

 

Ms Seete replied that only the Department could answer that question.  Bank Seta had received a letter stating that there were certain technical difficulties that the Department was facing.

Mr Themba Mahambi, the Administrator of the Construction SETA, noted that each SETA operated differently, and that within each SETA certain sectors cornered the resources available. Funding and financial models need to be reviewed and made uniform. The common problem within all SETA’s was that they had access to massive resources. There had to be a singular approach to how SETA’s operated. 

Ms Aisha Itzkin Acting CEO from the Chemicals SETA said that the focus should be on qualitative rather than quantitative issues. The challenges revolved around the demands on training and development. Chemical SETA also had to understand the Industrial Policy Action Plan and the strategic interventions of government. The micro companies had to be supported via skills development.

Ms Tsakane Mahlazi, Administrator of the Energy and Water SETA, noted three problem areas. Firstly, governance failures were notable in terms of leadership, strategic planning and financial management. This would be resolved via a new standard constitution across all SETA’s.  A brand new accounting authority would also be necessary as there was lack of proper oversight in this area. Secondly, leadership was lacking, especially related to planning. This was being addressed by filling able persons in leadership positions and restructuring the organisation. Thirdly, it was noted that the water component of Energy and Water SETA’s mandate has expanded to include sanitation as well this meant that that there were unfunded mandates to train employees in the water sector. Most water employees worked for municipalities who paid their levies to the Local Government SETA. These funding mechanisms needed attention and had to be resolved.

 

Ms Nombulelo Nxesi, CEO ETDP SETA (Education, Training and Development Practices) said that the ETDP SETA covered a vast sector and mainly focused on education, training and development. The challenges that were being faced was that the ETDP SETA was supposed to be responsible for monitoring only not training. Where there training was not adequate, it then became the responsibility of ETDP SETA and this was a serious challenge. There were quite a number of dropouts especially those funded by the SETA via bursaries at university. Learners trained by ETDP SETA were not always employed. Most of the funding came from the Department of Basic Education. It should be said that not all SETA’s were under performing and different SETA’s should be evaluated differently. There were also problems with the development of the levies as employers were waiting for this fund to continue with skills development. 

The representative from the Financial and Accounting Services SETA echoed the Bank SETA’s concerns about government information and the payments of grants. Secondly, as an example, it was noted that accountants normally do not work in only one sector, which affected the funding of those projects. Thus, professions as opposed to sector training should also be investigated. Positively, the National Skills Development Strategy III (NSDS III) allowed for catalytic funding for certain projects. High dropout rates at university were also noted as an extreme challenge.

The representative from the Education Training and Development Practices SETA noted that this SETA was slightly different as it dealt with very disparate bodies around the country. There was not enough engagement between the parties involved, the SETAs, and the Department. There was a delay in terms of payment of grants. Concerns about the adoption of the constitution were also raised.

Mr Sipho Ngidi, Chairperson of the Fibre Processing and Manufacturing SETA said that this SETA was an integration of three different SETAs. The challenges faced by the SETA were that it had to try and weave into one, three management structures and the representatives of employees and employers. There was a lso a need to set up an administrative structure that would

 

The representative from the Food and Beverage Manufacturing Industry SETA commented that SETA Chairpersons were unsure about their positions as a result of new legislation and the SETA constitution. Another representative noted that adequate buy-in from the participants in this SETA was not possible due to the fact that there was a short time to implement this, due to re-licencing concerns.

 

A representative from the Food and Beverage SETA said that he generally agreed with the issues raised by his colleagues however he did have reservations with the new constitution from the Minister of Higher Education. The consultation time was too little. In future the constitution should be revamped and should not be cast and stone. Not all SETA’s were performing poorly and there were few which continuously performed badly and were giving the rest a bad name

Mr Corrie Smit from the Health and Welfare SETA alluded to the fact that it seemed as if there were a great deal of funds available. However these funds were already allocated and there was little money for further projects. This was a growing sector, which in turn meant a growing need to develop skills. The demand for training far exceeded the funds which were available. SETA’s were not sitting on money, all funding was already committed. With the introduction of National Health Insurance there would be a further need for training.

The Chairperson noted that all monies should be accounted for in Parliament and that the SETA should be able to show who and where these monies were going.

A representative from the Insurance SETA noted that transformation in this sector was a problem. However the SETA was committed to transformation. There were 140 brokers, which had to pass their exams, which were set by the Financial Services Board (FSB) by the end of this year. Only 2500 to date have written their exams and less than 30% have passed. The implication was that there were many individuals who were at risk of being barred from practicing in the insurance industry if they did not pass the regulatory exams. The biggest challenge was for the Insurance SETA to help prepare the brokers for the exams so that they did not end up being unemployed

Ms Zandile Mbele, Chairperson of the Media, Information and Communication Technology SETA noted that this sector was a key driver in the economy. No problems were identified on an operational basis. However there were problems with the new model constitution and the composition of the Board. Also noted was that the SETA’s Service Level Agreement and Skills Plan had not yet been approved by government. A more open engagement with the Department of Higher Education and Training was also sought. Occupational training was also identified as a problem, namely the fact that some people were not able to progress into tertiary education. Students who dropped out of courses, for example in year two of a three year course, should be able to complete their qualifications through the SETA system and through their employment and learnership programmes.

 

The CEO of the Media, Information and Communication Technology SETA said that there should be better engagement with the Department of Higher Education and Training. The service level agreements should be finalised soon so that the Media, Information and Communication Technology SETA could get on with its work.

 

The representatives from the Local Governance SETA commented that regular democratic municipal elections influenced the SETA’s performance. Managing the contracts of those elected representatives was a challenge. Service delivery protests also affected the SETA and their work. The perception of employees and representatives at the local level was not good, as opposed to those at provincial and national level. Financial management was emphasised as a challenge for this sector. Technical skills, namely in terms of artisans, was also a challenge at the local level.

The representative from the Manufacturing and Engineering SETA, Raymond Patel, Interim CEO, noted that NSDS III required a new driving mechanism. The 10% administration fee could never sustain the running and management of the work of this, and possibly other SETAs. As an example, the creation of the qualification of 4 200 artisans, which the SETA does, cost approximately R840 million. Unfortunately the levy income was only R800 million.

Mr Patel also addressed the issue of stakeholder expectation. Stakeholders believed that the money collected actually belonged to the employer and the employee (being the unions). This mindset was not conducive to job creation and skill development in South Africa. Stakeholders were also expecting too much of the SETAs.

Mr Patel raised the issue of boards where the board members brought their own agendas to board meetings. ‘Alternates’ were also contentious and should be done away with.

The representative from the Mining Qualifications Authority SETA noted that programmes were sometimes not acceptable to the mining houses and the mining industry. Further engagement with mining houses and FET colleges was necessary. The other problem was the recognition of prior learning in the industry. Many employees had been employed in the industry for a lengthy period of time but were not able to be promoted because they had not achieved certain qualifications.

The constitution was also raised. In terms of the Mine and Health Safety Act, the SETA was unable to reconcile the new constitution with the SETA on one or two key aspects. This would be addressed with the Department.

The representatives from the Public Service SETA noted that this was a new SETA having previously been part of the Department of Public Service and Administration. Funding problems were identified in terms of collecting levies from government departments. Governance problems, especially related to the mismanagement of funds, had been identified in the past. The Special Investigating Unit was also involved with this. The SETA was previously placed under administration, however the SETA was being turned around. Systems had been put in place and policies had been adopted. As of 1 April 2011 the SETA was operationally independent from the Department. A new management structure had been put in place.

A ministerial task team had been established especially to investigate the funding model. An appeal was made to the Ministry that the task team be convened as soon as possible in order to deliver on the SETA’s mandate.

The representative from the Safety and Security SETA echoed some other SETA concerns regarding funding models as well as the new constitution. Various new mandates were created, unfortunately levies had not been collected or funding provided to see to those mandates. Enforcing compliance in terms of levy collection at entry level was difficult. Learnerships were difficult to establish in the legal fraternities, but this had been seen to by working with the legal fraternity.  Challenges in the South African Police Service and Metro Police training also existed, especially because these entities paid a small (er) levy than the private sector.  Additionally opening offices in different provinces was hampered by the 10% administration rate and funding challenges of the SETA.

The representatives from the Services SETA noted that corporate governance was a problem and that previously the ‘tail had wagged the dog’ and that boards and accounting authority were not providing only an oversight and strategic leadership role as they should. A court case was ongoing about the standard constitution and various members of the previous board and certain employees which was sub judice.

Massive resignations had hampered the SETA’s ability to function. Operationally there were a great many SMEs that were not above the threshold which would make it difficult to accommodate them in the SETA system. The New Venture Creation project had a success rate of only 10%. A more positive model was being developed to hopefully manage this process in a better way. The knowledge sector needed to be emphasised with the Higher Education and Training Sector.

The representative from the Transport SETA, Mr June Dube, the Chairperson, noted that levy payers viewed this levy as a tax. Stakeholders needed to be educated that this was not in fact true. It was also noted that the unregulated ‘mafia style’ taxi industry did not pay levies, however the Transport SETA still had a mandate to train in this arena. Artisan training was also a significant problem. State owned enterprises such as Transnet and SAA had stopped training artisans post 1994. 

The CEO of the Transport SETA noted that training needs were very diverse. The Transport SETA received a R7 million grant for training in the taxi industry which unfortunately only trained 30 drivers in each province per year (an approximate cost of R25 000 per driver). Artisans and aviation training needs were expensive and especially pilot training was a problem because it was so expensive. There was also no physical presence in each province.

The throughput rate of 52% was below what was expected. Labour market data was questionable and usually not credible (with the exception of data from StatsSA). This has resulted in under investment in certain areas, and over investment in others. A suggestion was made that the levy system should be changed and reviewed.

The representatives from the Culture, Arts, Tourism, Hospitality and Sport SETA echoed the earlier comments about funding and levy collection in this sector, as well as Departmental data that had hampered the performance of this SETA and the payment of grants. Additionally, this SETA had to coordinate its activities with four national government departments and this affected the payment and collection of the levy. There was also no physical presence in each province.

The representative from the Wholesale and Retail SETA noted that getting wholesalers and retailers, especially small retailers, involved in training was a problem. Strategic plans and service level agreements needed to be approved by Parliament as soon as possible. A problem was that fuel retailers had not been fully incorporated into this SETA where training could not be provided and levies could not be collected.

Discussion
The Chairperson noted that legislation was being developed that had taken into account some of the representatives’ issues and concerns.

Mr Radebe (ANC) pointed out that many SETAs had interlinking problems. However, co-operation and communication between the SETAs needed to be established to address some of those concerns.

An ANC Member commented that as a politician he would always favour participatory democracy with regard to the composition of the board. The Member echoed the fact that SETAs should synergise with one another and establish presences in all provinces, concentrating on rural areas. The Member supported some of the SETA grievances and wanted to encourage the representatives that these concerns were being raised with the Minster and the Ministry.

Mr van der Westhuizen (DA) was concerned and noted that his political party had consistently advocated abolishing SETAs. There was a lack of ‘backbone’ from the SETAs in regard to the new constitution that SETAs had been compelled to adopt. The cost of training through the SETA system was often too expensive and not effective. More money than ever was being spent on training but the outputs were less than in the 1960s and 1970s.

Mr van der Westhuizen wanted to know to whom the CEOs were reporting. It was also noted that corporate governance issues were serious concerns in the SETA landscape. Finally, sectoral skills plans were not up to scratch. Transversal skills were not being addressed by SETAs.

Dr Kloppers-Lourens was worried about the high rates of staff turnover in SETAs. Related to that point, he wanted clarification from the SETAs about whether or not huge severance packages were paid out to ex-employees and requested more details on the ongoing court cases.

Ms Vukuza (COPE) noted that problems seemed to be the same, but that the people in those roles in SETAs were different. Ms Vukuza echoed Mr Radebe’s call for collaboration between the SETAs and a forum that could voice their differentiation. SETAs had a bad reputation because they did not walk together.

Ms Vukuza commented that the ongoing problem of short courses was not addressed by any of the representatives. SETAs needed to be governed by values, the values of honesty, impartiality and objectivity and not politics. The National Skills Fund was also examined and Ms Vukuza queried why it kept on being funded when it consistently failed to spend its money.

Ms Nelson (ANC) queried the results that the SETAs were producing, and whether qualified people were being created or whether these funds were being used for cheap labour. Were workplace skills plans being monitored or were SETAs only looking at the numbers involved? SETAs were not providing experiential learning opportunities for graduates.

Ms Nelson emphasised that huge amounts of money were being spent and that these monies were seemingly not being responsibly spent. The Committee would hold SETAs accountable.

Mr Makhubele noted that in future SETAs would be held to account in terms of their results and that there would be no time for excuses. Targets in NSDS II were very low. However NSDS III had changed this and expectations were greater. Training should support productivity and career progression and short courses must be eradicated. NSDS III also clearly articulated the demands of transformation related to SETAs. SMEs needed to be contacted and brought into the fold of training programmes.

Mr Makhubele also emphasised that recognition of prior learning was something that needed attention from SETAs.

Mr Makhubele requested that any concerns that the representatives had should be brought to the Committee as soon as possible, and not only when they were called to Parliament.

The Chairperson thanked representatives for their presentations. The Chairperson noted that SETAs were statutory bodies accountable to the state. The Committee would consolidate representative’s concerns and present them to the Minister and the Ministry. If representatives had real concerns about elements of the constitution and the composition of the board they should have raised them before this Committee meeting.

The Chairperson stated that a thorough audit would be conducted for all SETAs and representatives would be held accountable. It was noted that SETA plans had not been approved because Parliament had in fact rejected the Department’s plan. SETAs must establish partnerships with FET Colleges and Universities. The annual performance plans of the Ministry and the SETAs need to work in harmony.

Members of the board who exchange tenders would be eradicated. Parliament would in future examine the conduct and performance of SETAs with an ‘eagle-eye’.

The Chairperson noted that all plans must take into account national strategies, for example the New Growth Path, the NSDS III, amongst others or else these plans would be rejected in May 2011. Targets and outcomes would be examined.

It was noted that a clean audit was compliance and not a boasting matter. Every SETA should comply and have a clean audit. Clear compliance (not monetary) and substantive performance should be focussed on.

The Ministry was requested to address certain SETA concerns, especially the creation of an inter-SETA forum. The Committee would hold the Minister and the Ministry accountable.

The Committee would investigate the performance of SETAs on a quarterly basis.

 

Appendix:

Statement by the Minister of Higher Education and Training on Re-certification and the new Boards  4 April 2011

The new mandate of the Department of Higher Education and Training

In terms of the Skills Development Act (1998), the Sector Education and Training Authorities (SETAs) are governed by an Accounting Authority. A SETA is thus established when it has a duly appointed board, an approved constitution, a certificate to operate and a five year National Skills Development Strategy. The term of office of the SETAs, certified in 2005, expired on 31 March 2010. The Minister of Higher Education and Training extended the operation of the SETAs to 31 March 2011.

The main reason for the extension of the SETAs was due to a reprioritization of Human Resource Development for South Africa and the establishment the Department of Higher Education and Training. The President established the Ministry and Department of Higher Education and Training, after splitting the functions of the former Minister and Department of Education to those of Basic Education and Higher Education and Training, and further transferring the functions of Skills Development from the Minister of Labour to the Minister of Higher Education and Training.

The medium term strategic framework of government 2010/2011 to 2014/15 prioritizes education, training and skills development as the apex of all the priorities. The President then allocated the following outcome of the Programme of Action of Government to the Minister of the Higher Education and Training: Ensuring the production of “A skilled and capable workforce to support an inclusive growth path”. The Department of Higher Education and Training thus had to ensure that it was not business as usual and had to fix the human resources system of South Africa while continuing with normal administration of the functions. This is akin to “fixing the aero plane while in the air”. Some of the engagements and processes followed to ensure delivery of this mandate were:
▪ Ensuring that the split of function from the former Department of Education and the Department of Labour are managed administratively so the Department of Higher Education and Training could be operational.
▪ Repositioning the National Skills Authority late in 2009.
▪ Launching the Human Resource Development Council under the leadership of the Deputy President, the setting up of structures to support the Council and the adoption of the Human Resource Development Strategy by March 2010.
▪ Tabling the Strategic Plan 2010/11 to 2014/15 for the new Department of Higher Education and Training in Parliament for approval.
▪ Tabling of the new proposed SETA landscape and the new five year National Skills Development Strategy 3 for public engagement and comment on 29 April 2010 and allowing sufficient time for engagement with the public, role players and other interested and affected stakeholders.

New beginnings
The new SETA landscape was announced by the Minister of Higher Education and Training on 11 November 2010. In the main 12 SETAs remain the same, 8 have minimal changes, and three had significant changes. The bases for the changed landscape was to ensure enhanced sector focus, ensure viability of all SETAs, consolidate the planning for the supply of skills, and to align with government and industrial growth strategies.

At the same time as the above processes were being dealt with, the following improvements were also set in motion:
▪ initiated a process to strengthen the SETA Sector Skills Plans (SSPs) by ensuring that it is the SETA itself that understands their environment and the needs of that environment so that they can develop a plan within the NSDS 3 to achieve their outcomes. The big change that was introduced was that there were no longer a one size fits all plan for all SETAs, but a customized needs based plan. SETAs were also encouraged to ensure that they consult with sector experts as to the needs of the sector. Further the Department was required to ensure that the Sector Plans are consulted with affected Government Departments. The Human Resource Development Council also had a role in advising on the Sector plans. This complex participatory process was time consuming, but necessary, and required new and innovative plans.
▪ established the Quality Council for Trades and occupations to improve occupational qualifications against which learnerships and apprenticeship programmes are developed;
▪ finalised a model and standard SETA Constitution as best practice guideline to improve accountability and performance of SETA boards.

All the above processes were not only necessitated because of the priority of education, training and skills to government and the nation but also because of some challenges that were identified. Important research and analysis that was done over the last five years focussing on ways to improve the efficiency and effectiveness of SETA’s was taken into consideration. In particular the reports by the Human Sciences Research Council focussing on impact of the work of SETA’s; and the research reports commissioned under the Presidency (the Singidzi report) and NEDLAC. These reports highlight the key challenges with regard to the SETAs and provide extensive recommendations which were to date not implemented.

Some of the challenges identified include, but are not limited to:
– Diffused focus and multiple objectives
– Uneven governance, management, administration, financial management & inefficiencies, planning and service delivery across SETA
– Difficulties in addressing cross-sectoral skills development and training requirements
– Uneven performance across SETAs
– Negative public perceptions, including clarity on the role of SETAs
– The context of the new DHET require alignment across institutions and SETAs with renewed focus, and relevant programmes for post school beneficiaries

New governance
To address issues of governance, the Department engaged intensely with SETAs, other key stakeholders and various constituencies, so that the new standards of governance were incorporated into the constitution of every SETA. Indeed, the buy in that the department received from this process was overwhelming. This certainly heralded a new beginning, and an era of continuity and change, for improving the functioning of the SETAs. By approving the SETA constitutions, the appointment of independent chairpersons, appointment of the two additional Ministerial appointees and the appointing of constituency nominees, a strong platform for governance in the SETAs over the next five years will have been established. The Constitutions will ensure that the consistent governance standards across the 21 SETAs are achieved, and that this aligns to best practice standards. Boards in the SETAs must maintain strategic focus and refrain from spending hours discussing procurement or operational management issues. The SETA board, as the Accounting Authority, must become increasingly professional. We believe that there is no contradiction between the stakeholder representative model and professionalization of SETA Boards. The Minister believes that SETAs will become more efficient through:

▪ The introducing of Independent Chairpersons
▪ Limiting the number of Board meetings to a reasonable number
▪ Reducing the size of Boards
▪ Participation of the government and Ministerial appointment to the SETA Boards
▪ Having a standard remuneration rate for Board and committee members
▪ Holding accountable Board members who do not carry out their duties as required
▪ The Minister and Cabinet’s participation in the appointment of SETA CEOs, in line with similar practices in other public entities.
▪ Ensuring the members of the Board and the management of a SETA do not participate in any tender processes where they may have an interest. Effective from the 1st April 2011, the Minister of Higher Education and Training has approved the constitutions of almost all the SETAs and has finalized the appointments to the new SETA Accounting Authorities, including the new independent chairpersons. All SETAs are now certified to function for the next five years, from 1 April 2011.

Conclusion
The new SETA landscape, sector strategy, national skills development strategy, certification, composition, constitution and governance is a product of long and intense consultation not only with SETAs, but with the National Skills Authority and the leadership of organized business, organized labour, organized community,government and experts.The Minister would like to congratulate all the newly appointed members and chairpersons of the SETA Accounting Authorities, and would further like to welcome them to the “New Beginning”. Attached in appendix A is a list of the Chairpersons, and the complete list of all members of all Accounting Authorities will be published in a Government Gazette on Friday the 8th of April 2011. The Minister would like to place on record his appreciation to the outgoing SETA boards and the chairpersons, especially in holding the reins during this transition phase and cooperating and engaging with the new beginnings.

Appendix A
Independent Chairpersons of SETA Boards

1 Agri SETA – Prof Gilingwe Mayende
2 Bank SETA – Mr Martin Mahosi
3 Construction SETA – Mr Themba Mhambi (Under Administration)
4 CHIETA – Ms Nolitha Fakude
5 Energy and Water SETA - Mr Senzeni Zokwana
6 ETDP SETA - Ms Sirley Mabusela
7 FASSET - Ms Tsakani Matshazi
8 Fibre Processing and Manufacturing SETA – Mr Sipho Ngidi
9 FOODBEV SETA – Mr Fankie Komape
10 H&W SETA – Ms Nozipho January-Bardill
11INSETA – Mr Mzimkhulu Msiwa
12 LG SETA – Mr Duma Nkosi
13 MERSETA – Ms Phindile Nzimande
14 Media Information and Communications Technology (MICT) SETA – Ms Zandile Mbhele
15 Mining Qualifications Authority – Mr Thabo Gazi
16 PSETA - Ms Koko Mokgalong- Mashego
17 SASSETA – Mr Abbey Witbooi
18 Services SETA – Dr Sihle Moon
19 Transport SETA (TETA) – Mr June Dube
20 Tourism and Hospitality SETA (THETA) – Ms Brenda Madumisa
21 Wholesale and Retail SETA (W&R) – Dr Thami Mazwai




Documents

No related documents

Present

  • We don't have attendance info for this committee meeting

Download as PDF

You can download this page as a PDF using your browser's print functionality. Click on the "Print" button below and select the "PDF" option under destinations/printers.

See detailed instructions for your browser here.

Share this page: