Issued by Ismail Joosub on behalf of the FW de Klerk Foundation on 03/07/2025

The FW de Klerk Foundation is deeply concerned by reports that Minister of Higher Education and Training, Dr Nobuhle Nkabane, misled Parliament regarding the appointment of politically connected individuals to chair the boards of Sector Education and Training Authorities (“SETAs”). These developments strike at the heart of accountability and constitutional governance.

Section 55(2)(a) of the Constitution requires that the National Assembly provide mechanisms to ensure executive accountability. To lie to Parliament (or to misrepresent facts under oath) is not merely unethical; it may constitute contempt under section 13(b) (read with section 17(2)(e) and section 12(6)) of the Powers, Privileges and Immunities of Parliament and Provincial Legislatures Act 4 of 2004, a statutory offence carrying criminal consequences.

It cannot be overstated how important SETAs are to South Africa’s skills pipeline. There are currently 21 Sector Education and Training Authorities, responsible for administering learnerships, apprenticeships and other skills initiatives across the economy. Together, they cater to hundreds of thousands of students and trainees each year, with many of them being young people from marginalised communities.

Now, SETAs are not funded by general taxation, but rather through a mechanism called the “Skills Development Levy”, a mandatory 1% payroll tax paid by employers with an annual payroll exceeding R500 000. This means that both the private sector and ordinary workers contribute, indirectly and directly, to funding these institutions. In 2023 alone, this levy generated over R16 billion, with more than R12,8 billion allocated to SETAs. The remaining portion goes to the National Skills Fund. Simply put, SETAs are funded by the public and any form of political interference or maladministration constitutes a betrayal of that public trust.

Yet, SETA performance has been inconsistent. Numerous academic and independent reviews have found serious deficiencies in their governance and outcomes. Only two SETAs were found to operate efficiently in a past major review, with many failing to meet their core targets. Worryingly, average annual underspending sits at around 28% of collected levy income – money that should be used for training, but often lapses due to poor management or systemic inefficiencies. It is precisely for these reasons that the highest standards of constitutional compliance must govern appointments within the SETA system.

Let us be clear: SETAs play a vital role in equipping South Africans, especially the youth, with skills for employability. Their boards are meant to be filled through transparent, merit-based processes involving independent oversight and not political cadre deployment. Any manipulation of these appointments undermines the credibility of the post-school education and training system and betrays the trust of students, employers and the public alike.

The Foundation calls on all arms of government to treat this matter with the seriousness it deserves, because integrity in public appointments is not optional in a constitutional democracy.