What led to the R637 million audit scrutiny of SETA?
Education, Training Development Practices Sector Education and Training Authority finance manager Khawedzo Ngaledzani, board chairperson Olwethu Sipuka and Higher Education Department director-general Nkosinathi Sishi appearing before the Higher Education Portfolio Committee.
Image: Phando Jikelo / RSA Parliament
The Education, Training Development Practices Sector Education and Training Authority (ETDP SETA) has blamed an accounting error for the Auditor-General's finding of R637 million in unaccounted Discretionary Grant expenditures for the 2024/25 financial year.
This emerged when the ETDP SETA appeared before the Higher Education Portfolio Committee to account on the reports about the R637m that allegedly went missing and was unaccounted for.
Zamahlangu Mditshwa, acting Business Unit Leader at the office of the A-G, said the auditors had conducted an audit on a sample of transactions on the R637m Discretionary Grant and they did not get supporting documents on skills development initiatives.
“It means that we could not express an opinion on the full R637m. If you look at the actual transactions, it was totalling R42m we did not get supporting documents,” Mditshwa said.
She also said the A-G will follow up on the finding during the auditing of the entity’s finances for the 2025/26 financial year.
“I can confirm that we have still not received supporting documents to support the transactions,” she said adding that the balance of the R637m needed to be “unpacked” as there could be more transactions that could be not accounted for.
ETDP SETA Finance manager Khawedzo Ngaledzani put the blame for the audit finding to an error in the transactions of stipends that were recorded in their general ledger book.
“There was an error that happened where there were transactions for R42m made up of seven transactions,” Ngaledzani said.
“Timesheets were maintained within individual business units instead of a centralised system, resulting in delayed submissions during the audit period. All required documentation was subsequently provided to the Auditor General South Africa between June 11 and July 26, 2025.”
Ngaledzani said: “The information that was not submitted based on the list from the A-G was subsequently submitted.”
Board chairperson Olwethu Sipuka said they have audited evidence to prove that the R637m has not gone missing.
Ngaledzani, whlwethu Sipukao took responsibility for the R42m error, maintained the money had not left their bank account because the error had been recorded as an accrual.
Bulelwa Skweyiya, a senior manager at A-G’s office, said there was nothing to suggest the R42m was paid out or not.
“The transaction could be there or not, but we do not know … This must be investigated,” said Skweyiya.
The MPs were not convinced by the ETDP SETA explanation.
“We are dealing with criminality here. I suspect that we are having thieves who are stealing money from the SETA. I am not persuaded that an error of R42m can be made,” EFF MP Sihle Lonzi said.