Outa urges Higher Education Minister Manamela to tackle alleged tender irregularities in Setas
The Organisation Undoing Tax Abuse (Outa) has called on newly appointed Higher Education and Training Minister Buti Manamela to urgently address allegations of widespread tender irregularities and mismanagement within South Africa’s Sector Education and Training Authorities (SETAs).
In its latest investigation, Outa highlights serious governance failures at the Construction Education and Training Authority (CETA), raising broader concerns about the performance and accountability of the SETA system, which is allocated R21 billion annually through the Skills Development Levy.
“The SETA model is failing. These institutions are bleeding public funds while the youth they should serve are left stranded,” said Wayne Duvenage, Outa CEO.
“We’re dealing with recycled leadership, dodgy tenders, and investigations that are hidden or ignored. That’s not oversight; that’s a cover-up.”
In response to Outa’s request for a meeting, Mandla Tshabalala, from the Department of Higher Education and Training, confirmed that the ministry has acknowledged receipt of the request.
“We have received the request from Outa and we are still to gather reports from the SETAs,” said Tshabalala.
“It has only been a few days since the appointment of Minister Buti Manamela, so we do not have all the information at the moment.”
At the centre of Outa’s investigation is the CETA, where the organisation said it had found evidence of alleged poor procurement practices and a culture of intimidation towards whistleblowers.
Outa reviewed two key forensic investigations:
- A 2019 report by Gobodo Forensic and Investigative Accounting, commissioned by the Department of Higher Education and Training, which identified irregular tender processes and employee victimisation.
- A second report by Duja Consulting, commissioned in 2020 at a cost of R18.9 million, which flagged irregularities in all 24 bids assessed and recommended disciplinary action. The final report was submitted to then Minister Blade Nzimande in 2021 but has not been made public.
Outa also reviewed two legal opinions commissioned on the Duja report. “When R18.9 million is spent on a forensic investigation and the report ends up buried, that’s not negligence, it’s contempt for the public,” said Rudie Heyneke, Outa Senior Project Manager.
One whistleblower who reported procurement improprieties was cleared of allegations and reinstated, but now faces renewed disciplinary proceedings, which Outa said it believed to be retaliatory.
Outa said its investigations into INSETA, the Services SETA, and the MICT SETA revealed similar issues. These include alleged questionable contracts, over-priced tenders, non-functional training centres, and possible conflicts of interest involving service providers.
At the Services SETA, Outa questioned over R1 billion spent on skills development centres, many of which are reportedly vandalised or non-operational. INSETA’s appointment of a company in an R18 million contract to clean historical learner records also raised concerns, particularly due to links between the company and former board members.
Outa said it would submit its findings and supporting documents, including the draft Duja report, to Parliament’s Portfolio Committee on Higher Education and Training to aid in oversight.
“We’re calling for a frank conversation with Minister Manamela,” said Duvenage. “It’s time for a reset. The sector desperately needs transparent leadership, independent boards, and the political will to act on evidence that’s already been paid for.”