CETA Chief Executive Officer, Malusi Shezi, has raised concern about the Department of Higher Education and Training (DHET) Director-General Dr Nkosinathi Sishi gazetting the entity’s placement under administration without first formally informing it.

DHET Minister Buti Manamela announced on Wednesday that former acting municipal manager at Emfuleni Municipality, Dithabe Nkoane, has been appointed as the CETA’s administrator.

He also appointed Musina-Makhado Special Economic Zone (MMSEZ)’s former chief executive officer, Matjie Masoga, as Services SETA administrator, and DHET’s Deputy Director-General for Skills Development, Zukile Mvalo, for Local Government SETA (LGSETA).

However, on the same day of the announcement, Shezi posted a statement on the website, saying that it had not been formally notified about the decision.

“We await such communication to provide clarity on the reasons for such a decision,” read the circular to the CETA’s stakeholders, which circulated on social media. 

Manamela’s spokesperson, Matshepo Seedat, had not responded to questions sent to her via WhatsApp, but the story would be updated as soon as she responded.

Shezi requested CETA’s stakeholders to remain calm while awaiting clarification from Sishi, who gazetted the SETAs’ placement under the administration. 

In his statement, Shezi said the CETA had achieved 98% of its Service Level Agreement (SLA) targets “as confirmed by the Auditor-General of South Africa (AGSA) during the current audit compared to 92% in 2023/24”. 

“Furthermore, there is no investigation report that has been made that concludes that financial maladministration has occurred at the CETA. 

“These are fundamental requirements in terms of the Skills Development Act of South Africa (as amended) and the SETA constitutional requirements to be met in placing any SETA under administration,” said CETA.

Announcing the administration placements, Manamela said the intervention was in reaction to serious and entrenched three SETAs’ governance failures, including procurement irregularities, lapses in oversight, and board instability, which threatened their ability to deliver on their mandate to advance skills development. 

Manamela placed the SETAs under administration almost five weeks after he was appointed minister, replacing his predecessor, Dr Nobuhle Nkabane, who President Cyril Ramaphosa fired due to controversy surrounding the appointments of the SETA board chairpersons.

Shezi said that its former board chairperson, whose term ended on March 31, 2025, told the Ministry that there was no financial maladministration. 

“And further indicated that the CETA was performing its mandated functions and had achieved 92% of its APP (Annual Performance Plan) targets, a significant improvement from 22% in 2020/21; and that no new irregular expenditure was incurred in the 2023/24 year audited.

“The CETA leadership remains committed to clean administration and proper governance,” the statement read.

“We sincerely value and appreciate the continued support you have pledged to the CETA as stakeholders in the construction and built environment sector. 

“Further information regarding the implications of the process announced in the Gazette will be communicated in due course; once the CETA has been formally notified,” the statement concluded.

Briefing the Standing Committee on Public Accounts on February 4, on the financial performance of the SETAs, the Auditor-General of South Africa (AGSA)’s team highlighted that AGSA had identified material irregularities within CETA “related to financial losses resulting from non-compliance”. 

The summary of the committee’s meeting said AGSA Deputy Business Unity leader Zamahlangu Mditshwa had stressed that AGSA expected accounting authorities to conduct investigations into irregularities to determine their root causes and implement corrective measures. 

Mditshwa said consequence management requires disciplinary action where wrongdoing is identified.

“However, AGSA had encountered significant delays in CETA’s response to these irregularities, which undermined accountability.

“She concluded by stating that AGSA remained concerned about CETA’s slow progress in implementing the recommendations provided, as this continued to hinder efforts to enforce accountability,” read the minutes. 

DA member and Higher Education and Training Portfolio Committee member, Karabo Khakhau, questioned the appointment of Nkoane as the CETA administrator, saying a forensic report from Comperio implicated him in the alleged mismanagement of Emfuleni’s R872 million. 

bongani.hans@inl.co.za

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