MERSETA and the Construction SETA (CETA) 2024/25 annual reports

Video Annual Reports 2024/25 The Portfolio Committee on Higher Education met with the Manufacturing, Engineering and Related Services SETA (MERSETA) and the Construction SETA (CETA) to engage on their 2024/25 Annual Reports. The meeting was dominated by severe concerns over departmental accountability and systemic governance failures within the entities. The Committee formally rejected the apology submitted by the Director-General (DG) for his absence, citing a pattern of non-attendance at oversight meetings. Members expressed a collective loss of confidence in the DG’s administrative ability to manage the Department and its entities, resolving to formally escalate the matter. Both SETAs presented qualified audit opinions from the Auditor-General of South Africa (AGSA) for the fourth (CETA) and third (MERSETA) consecutive years. CETA’s financial management was scrutinised for R871.4 million in cumulative irregular expenditure and a lack of audit evidence for R2.7 billion in discretionary grant commitments. MERSETA faced criticism for holding R5.3 billion in financial reserves while failing to fully execute its skills development mandate. The discussion revealed allegations of officials misleading the Committee, the systematic victimisation of whistleblowers at CETA, and a failure by the Department to implement a central Learner Management System (LMS) despite repeated AGSA recommendations. The appointment process for SETA CEOs was also questioned, with Members alleging that recent five-year appointments circumvented the mandatory national recruitment process. The Committee concluded with strict resolutions, including a deadline for CETA to submit documents and an intention to pursue legislative reforms. Members also agreed to hold a dedicated follow-up meeting on the National Student Financial Aid Scheme (NSFAS) accommodation cap.