Parliament, Thursday, 23 April 2026 – The Portfolio Committee on Higher Education and Training on Thursday expressed serious concern over the Education, Training and Development Practices Sector Education and Training Authority’s (ETDP SETA) failure to provide adequate documentary evidence to account for expenditure on discretionary grants, despite the entity’s insistence that no funds are missing.
The ETDP SETA appeared before the committee to respond to allegations that it could not account for R637 million flagged in the Auditor-General of South Africa’s (AGSA) audit findings. The SETA also had to respond to claims that it was paying R690 000 per month for a vacant building.
The ETDP SETA disputed the allegation that it could not account for R637 million. According to the entity, the AGSA finding related to a limitation of scope on discretionary grants amounting to R637 million, rather than missing funds. The SETA told the committee that media reports were misleading and that the issue related instead to 179 transactions totalling R116 million, not R637 million. However, the AGSA said it had not received supporting documents for the 179 transactions.
The committee expressed concern that the SETA could not produce evidence to substantiate its expenditure on discretionary grants. The Chairperson of the committee, Mr Tebogo Letsie, said the confusion around the R637 million could have been avoided had the ETDP SETA moved swiftly to correct what it considers to be misleading media reports. The Chairperson noted that the funds had not disappeared but remained in the discretionary grants account. He said that clearer communication from the outset would have prevented unnecessary public alarm.
Concerns were also raised about R42 million earmarked for student stipends that had not been paid. Instead, the committee heard, it was recorded as accruals from May 2024, only to be reversed in July 2025. The ETDP SETA attributed this to human error. Members stressed that, without proper supporting documentation, AGSA could not verify the flow of funds or determine what had happened to the money.
Regarding the building lease, the former Chief Executive Officer of the ETDP SETA, Ms Nombulelo Nxesi, told the committee that staff had been instructed to work remotely because the head office was unsafe. She said that over a 13-month period, the ETDP SETA paid a total of R8 969 132.15 during the occupancy and transition period.
The Minister of Higher Education and Training, Mr Buti Manamela, told the committee that the allegations against the ETDP SETA were serious, particularly given that employees had been left without office space and had to work from home.
Mr Letsie emphasised that the situation could have been avoided. He said the problems identified after the lease agreement was signed pointed to a lack of proper due diligence. He said that expert inspections and sound professional advice should have been secured before the agreement was concluded. At the same time, the Chairperson acknowledged the steps taken since then to address the matter.
ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE PORTFOLIO COMMITTEE ON HIGHER EDUCATION AND TRAINING, MR TEBOGO LETSIE
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