OUTA criticises Minister Manamela' s decision to reappoint Inseta CEO amid audit failures
The Organisation Undoing Tax Abuse (OUTA) has expressed disappointment with the decision by Minister of Higher Education, Buti Manamela, to reappoint Gugu Mkhize as CEO of the Insurance Sector Education and Training Authority (Inseta) for another five-year term.
Mkhize’s reappointment was confirmed in a post by Inseta on their Facebook page.
The post said that over the past 5 years, Mkhize’s leadership had transformed Inseta into a dynamic, transformative, inclusive and innovative Training Authority in the insurance sector.
“Her reappointment reflects the trust and confidence of the INSETA Board and Management. As Ms. Mkhize begins this new chapter, we look forward to five more years of bold vision, collaboration and continued excellence.”
However OUTA stated that the Minister had “erred” in reappointing Mkhize, citing years of governance failures, irregular expenditure, and poor performance under her leadership at Inseta.
The organisation argues that Mkhize’s reappointment contravenes the Regulations for the Conditions of Service and Appointment of the CEO of a SETA, which require “satisfactory performance” as a condition for renewal.
“On this measure, Mkhize’s performance has been significantly lacking,” OUTA said.
According to OUTA, Inseta has received four consecutive qualified audits from the Auditor-General of South Africa during Mkhize’s tenure.
OUTA also highlighted cases of what it called “highly irregular procurement practices” including:
- An office fit-out and relocation contract worth R14.1 million
- A R14.5 million ERP system contract that was “not needed and has been problematic”
- A terminated R18.3 million data-cleaning contract with a company, which was simultaneously registered as a skills development provider for Inseta, raising “a serious conflict of interest”.
Additional allegations include “ghost learners, system inefficiencies, delayed learner certificates, and purging of staff who dared to challenge questionable decisions and alleged abuse of power”.
OUTA stated it has filed multiple requests under the Promotion of Access to Information Act (PAIA) for clarity on these issues but has encountered resistance and insufficient feedback.
Citing research by the Bureau for Economic Research (BER) at Stellenbosch University, OUTA pointed to the broader dysfunction within the SETA system.
The BER found that while SETAs collected R164 billion in levies over 13 years, certifications declined by 23 percent, and the cost per certification reached R181,000, more than double the cost of a university enrolment.
“If government is serious about restoring integrity and effectiveness to the SETA system, then reappointing CEOs with such problematic and poor performance track records sends the wrong message,” said OUTA CEO Wayne Duvenage.
“South Africa cannot continue rewarding failure and misconduct with renewed contracts.”
OUTA said repeated requests to meet with Minister Manamela “have been ignored.”