Setas are meant to equip young people with skills to prepare them for an ever changing labor market, but many organisations are not meeting their targets.
(Photo: iStock) 
A look beyond the immediate uproar over former higher education minister Nobuhle Nkabane’s bungled appointment panel reveals that South Africa’s Sector Education and Training Authorities (Setas) are anything but recent. Long before Nkabane’s tenure, these institutions were plagued by governance failures and corruption.
Read more: Educated for leadership and engulfed by scandal, Minister Nkabane faces her sternest test.
Damning case studies – on the Local Government Seta (LGSeta), the Health and Welfare Seta (HWSeta), and the Service Seta – reveal just how extensively public funds have been misused.
LGSeta under fire for tender scandal and millions in wasteful spending
The LGSeta has found itself entangled in controversy following a whistle-blower tip-off received by its current CEO, Ineeleng Molete. The whistle-blower, via former board chairperson Phumlani Mntambo, raised serious allegations of corruption, triggering a forensic investigation in 2022.
The findings were staggering. Investigators uncovered systemic governance failures, including procurement irregularities linked to a R2.3-billion tender process riddled with noncompliance. The report also cited the irregular appointment of training providers, unauthorised discretionary grant allocations, financial bias and overpayments.
Appearing before Parliament’s Portfolio Committee on Higher Education in May 2025, Molete confirmed that a criminal case had been opened with the Hawks but said LGSeta was unable to name those implicated while legal proceedings were ongoing.
Daily Maverick followed up with LGSeta to understand whether the case was still active. Molete said it is pending further investigation by the Hawks, adding that “no arrests of individuals have been made by SAPS”.
/file/dailymaverick/wp-content/uploads/2025/07/imfo1_v24_n4_a12f6.jpg "LGSeta CEO Ineeleng Molete. (Photo: X)")
Reports of financial mismanagement didn’t end there. In the 2023/24 financial year, LGSeta recorded R39.7-million in fruitless and wasteful expenditure, including R172,000 on trip-related incidentals.
Molete defended the spending, explaining that R39,519,356.83 related to discretionary grant contracts that expired on 31 March 2024. “While funds were disbursed, no money was lost or unnecessarily paid. The initial concern was deemed invalid and has been removed in the current financial year,” he said.
He added that R122,800.00 was for learners who had passed away during their programmes. “Consequently, despite funds having been committed for their development, LGSeta could not fully achieve the intended value for money,” Molete said.
Read more: Outa says Sector Education and Training Authorities need a complete overhaul for job creation.
Another R104,651.00 had gone to a professor invited on an LGSeta trip as a subject matter expert, while R39,272.13 had been used during an official travel trip.
Health and Welfare Sector Education and Training Authority
The HWSeta recorded R1.72-million in wasteful expenditure in 2023, including unpaid stipends, accommodation for absent learners, post-resignation salaries and interest on overdue invoices. Irregular spending hit R2.8-million due to inflated purchase orders and payments to unregistered stakeholders, though an internal probe confirmed only R160,000 was formally irregular.
HWSeta has opened legal action against organisations that withheld learner stipends, including Afrika Connect (R900,000), Ludziwo Foundation (R469,000), Remmogo VE (R166,000) and Lithala Financial Education (R989,000).
Two additional lawsuits loom. Lerong Consulting (Pty) Ltd is suing HWSeta for R823,267 over an alleged contract breach, with legal costs of R800,000, while True Harvest College seeks damages for reputational and financial losses, anticipating R550,000 in legal fees.
HWSeta spokesperson Rulleska Singh told Daily Maverick about the disciplinary measures taken against those who signed off on payments to entities not registered with CIPC and the current status of the legal proceedings.
“Where wrongdoing was established, disciplinary proceedings were concluded, resulting in dismissals of responsible personnel… The Lerong Consulting matter remains ongoing, with a trial date yet to be set. The True Harvest College case has a trial date scheduled for 2026,” said Singh.
She added: “When stipend misuse was identified through the organisation’s tip-off hotline, immediate action was taken, including referrals to legal representatives and opening cases with the South African Police Service. Of the 302 learners affected by these incidents, 232 have been compensated thus far. Recovery processes continue for all outstanding amounts.” DM