The Chemical Industries Education and Training Authority. (Photo: Chieta) 
This is the latest state entity to fall under the microscope of the Special Investigating Unit (SIU), following President Cyril Ramaphosa’s authorisation of a sweeping corruption probe that could uncover millions in misappropriated public funds.
Ramaphosa’s proclamation grants the SIU broad powers to investigate alleged fraud, corruption and maladministration at the skills development body from 1 April 2016 to 31 March 2020.
The investigation focuses on three critical areas:
- the suspicious allocation of discretionary grants to entities where Chieta officials may have held undisclosed financial interests;
- procurement irregularities in ICT and auditing services; and
- the quantification of losses suffered by both Chieta and the state.
From ignorance to ownership
When Daily Maverick first approached Chieta for comment, they responded with a terse: “Chieta has not yet received any formal communication from the Special Investigating Unit (SIU) and is therefore not in a position to comment on the matter at this stage.”
However, in a media statement on Friday, 20 June, Chieta now claims it “welcomes the recent presidential proclamation” and reveals that “it was Chieta that requested the SIU to investigate certain officials in 2019”.
This narrative shift raises uncomfortable questions about the initial claim of ignorance regarding a presidentially mandated probe published in the government gazette.
‘Self-investigation’ defence
According to the latest statement, the organisation “commissioned an independent forensic investigation into concerns surrounding historical procurement processes” in 2019, focusing on:
- Procurement of IT services dating back to 2019
- Internal audit services between 2016 and 2019
Chieta claims it “formally referred the matter to the SIU in 2019 and, in 2021, opened a criminal case involving former employees”. The organisation further states that its board “mandated the recovery of misappropriated funds linked to these findings”.
If accurate, this timeline suggests Chieta has been managing a corruption scandal for six years, while publicly celebrating clean audits and operational successes.
Messy trail of clean audits
This SIU investigation was not triggered by isolated incidents, but rather by a pattern of irregular expenditure that persisted even as the entity celebrated receiving “clean audits” from the Auditor-General of South Africa (AGSA).
This apparent contradiction — clean audits alongside substantial irregular spending — forms one of the most puzzling aspects of Chieta’s financial management over recent years (click on the bars to find out how much).
The 2021/22 financial year proved particularly problematic, with the AGSA noting material misstatements across multiple financial components that required correction, including irregular expenditure, discretionary grant expenditure, and related party disclosures.
R30.5m smoking gun
Central to the current investigation is a R30.5-million irregularity involving a former grants executive manager who allegedly contravened grant regulations through non-disclosure of interests during discretionary grant awards.
This case, which spans both the 2021/22 and 2022/23 financial years, has already been referred to law enforcement with a criminal case opened — which lines up with the organisation’s claim of having opened a criminal case in 2021.
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The SIU’s mandate specifically targets such conflicts of interest, investigating “entities in which employees or officials of Chieta may have had undisclosed or unauthorised interests” and quantifying “any benefit so derived by such employees or officials”.
Beyond grant allocation, the investigation will examine procurement of ICT and auditing services; with the latter being of particular interest because it suggests potential compromise of the very oversight mechanisms designed to ensure financial integrity.
The media statement acknowledges these focus areas, specifically mentioning “procurement of IT services dating back to 2019” and “internal audit services between 2016 and 2019” as matters reflected in the president’s probe.
What this means for you
- Alleged corruption in Sector Education and Training Authorities (Setas) threatens critical skills training initiatives funded by public money.
- Mismanagement of funds undermines efforts to address skills gaps, posing risks to economic development goals outlined in the National Development Plan.
- Investigations into multiple Setas signal larger vulnerabilities within the R20-billion skills development ecosystem, potentially affecting access to training and bursary opportunities.
Clean audits, dirty money
What is most perplexing, however, is Chieta managing to secure unqualified audit opinions for 2022/23 and 2023/24, while maintaining substantial irregular expenditure balances.
It continues to boast about “clean audits, a 100% performance rating from the Auditor-General, and no incidents of fraud or irregular, fruitless, or wasteful expenditure reported since 2020” even as its own annual reports revealed persistent financial irregularities.
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But management is claiming a level of immunity, saying “the investigation does not involve Chieta’s current leadership or its ongoing programmes” with operations “including the successful national rollout of Smart Skills Centres” remaining “unaffected”.
This attempt to ring-fence current operations from historical misconduct may prove optimistic, given that the SIU’s mandate extends to quantifying losses and recovering misappropriated funds — processes that typically require comprehensive organisational cooperation.
Seta has a cold
Chieta’s troubles are only one symptom of a broader syndrome. The SIU has been authorised to investigate multiple Sector Education and Training Authorities, including the Media, Information and Communication Technologies Seta, and the Safety and Security Seta, suggesting systemic vulnerabilities across the more than R20-billion ecosystem.
These organisations play a crucial role in South Africa’s skills development landscape, channelling hundreds of millions in public funds toward training programmes and bursaries.
The funds, derived from mandatory employer contributions and National Skills Fund allocations, are meant to address critical skills gaps and support national economic development goals outlined in the National Development Plan.
The alleged corruption therefore represents not just financial losses, but a direct threat to our industrial skills development capacity at a time when they are desperately needed. DM