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) on Thursday blamed an accounting error in its finances that led the Auditor-General (A-G) to make an audit finding regarding the R637 million expenditure on its Discretionary Grant 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.
A report ETDP presented to the committee stated that there were no missing funds from the R637m Discretionary Grant.
Instead, the auditors had asked for supporting documents relating to 179 transaction totalling R116m.
“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.
“We have audited figures to say this is what we submitted at the time of the audit,” Sipuka said.
Ngaledzani, who 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.
Lonzi said the error of R42m magnitude should have been picked up if the entity has internal systems.
“If the money was not paid, it means the A-G caught you in the process of trying to do criminality with that R42m,” he added.
DA MP Karabo Khakhau suggested that “it is clear who is stealing money with who and at how much rate”.
“It is not right that we have a public purse being abused in the way that has been used with absolutely no accountability and Parliament used as a play station as if it is not important,” said Khakhau.
Higher Education Minister Buti Manamela had told the MPs in his opening remarks there has been an attempt to try and frustrate efforts to get to the bottom of the challenges at ETDP SETA.
Manamela said the reports about the more than R600m that allegedly disappeared was a major concern.
He stated that he had asked for a detailed report from ETDP SETA and the National Skills Authority to provide an advice and recommendation on the matter.
“The responses were received and are under consideration,” Manamela said.
mayibongwe.maqhina@inl.co.za