DHET Responds to Auditor Concerns. The Department of Higher Education and Training (DHET) is continuing its engagement with the Auditor-General of South Africa (AGSA) regarding concerns linked to the appointment of accounting authority members at Sector Education and Training Authorities (SETAs).
The department has clarified that the audit process is still ongoing and that matters currently being discussed should not be treated as final findings by the Auditor-General. DHET said it is providing explanations, supporting information and clarification as part of its continued engagement with AGSA.
According to the department, the outcome of the audit has not yet been finalised, and it does not want to draw conclusions before the process is completed.
DHET Reviews the SETA Appointment Framework
One of the major issues under discussion involves the legislative and policy framework used for appointing SETA accounting authority members.
DHET said it has been implementing the appointment framework according to the requirements that currently exist. Where legislation or policy does not specifically prescribe a particular process or requirement, the department believes that the absence of such a provision should not automatically be considered non-compliance.
The department also highlighted the difference between failing to follow an existing legal requirement and identifying an area where legislation or governance procedures could be improved.
Despite this position, DHET acknowledged that certain parts of the current framework could benefit from greater clarity and strengthening.
As a result, the department is conducting a broader legislative review. Proposed amendments are expected to focus on improving governance, accountability, transparency and oversight throughout the SETA system.
The review aims to make legislative requirements clearer, practical and easier to implement consistently.
SETA Accounting Authority Appointments Under Discussion
DHET has also engaged AGSA regarding the process used to select and appoint candidates to SETA Accounting Authorities.
The department explained that a competitive recruitment and selection process can produce several candidates who meet the required eligibility criteria, even when there are fewer available positions.
Therefore, DHET maintains that an eligible candidate not being selected does not automatically prove that the person was unfairly excluded or that the appointment process was irregular.
According to the department, candidates recommended for appointment were assessed against the eligibility requirements contained in the Skills Development Act, 1998 (Act 97 of 1998), together with the relevant policy framework.
DHET said that if the review identifies weaknesses in record-keeping, procedural clarity or the documentation of decisions, these areas will be addressed through its governance improvement programme.
Verification of SETA Board Members
Another important issue concerns the verification and due-diligence processes applied to people appointed to SETA Accounting Authorities.
DHET said appointment letters issued to accounting authority members contain conditions requiring criminal-record checks and qualification verification.
The department is also examining individual cases raised during the audit process. If the completed audit establishes that an appointment or process deviated from an applicable legal or governance requirement, appropriate action will be considered.
This approach is intended to ensure that concerns are assessed on the basis of specific evidence and the legal requirements applicable to each case.
Questions About Qualifications
DHET has also responded to questions regarding the educational qualifications of certain SETA accounting authority members.
The department stated that the Skills Development Act does not prescribe a specific qualification level, such as NQF Level 7, as a mandatory statutory requirement for appointment to a SETA Accounting Authority.
However, DHET said that accounting authorities should collectively have the qualifications, knowledge, expertise and leadership experience required to provide effective strategic oversight and governance.
This means that while a particular qualification level may not be a statutory prerequisite, the collective capabilities of an accounting authority remain important for the effective management and oversight of SETAs.
DHET Continues Engagement With AGSA
The department said it will continue working with AGSA to reconcile the matters raised during the audit with the specific legislation and requirements applicable to the SETAs and appointments concerned.
DHET believes this process will help ensure that conclusions regarding compliance are based on the relevant law and verified evidence.
The department has characterised the concerns as primarily relating to processes, documentation and opportunities to improve governance rather than evidence of material failures in the overall functioning of the SETA governance system.
Nevertheless, DHET said it takes the concerns seriously and remains committed to cooperating with the Auditor-General.
What Happens If Non-Compliance Is Confirmed?
The department has indicated that any confirmed instances of non-compliance will be dealt with according to the applicable legal and governance processes.
If the completed audit establishes evidence of non-compliance, misconduct, negligence or other wrongdoing, DHET said the relevant circumstances and responsibilities will be assessed.
Where necessary, corrective measures will be pursued in accordance with legislation, policy and due process.
The department’s continued engagement with AGSA is therefore expected to help clarify which concerns relate to existing legal requirements and which may point to areas where the SETA governance framework needs improvement.
Conclusion
The DHET’s response indicates that discussions with the Auditor-General over SETA accounting authority appointments are still ongoing. The department has emphasised that the matters under consideration should not be treated as final audit conclusions until the process is completed.
At the same time, DHET has acknowledged opportunities to strengthen legislation, documentation, verification procedures and governance practices. The department says it remains committed to improving transparency, accountability and effective oversight across the SETA system while ensuring that any confirmed violations are addressed through the appropriate legal and administrative processes.
