DHET Engages Auditor-General on SETA Accounting Authority Appointments and Governance Framework

Posted 17 September 2026 Written by Acts Online
Category Labour & Employment

Brought to you by SAnews: The Department of Higher Education and Training (DHET) has entered formal engagements with the Auditor-General of South Africa (AGSA) regarding audit findings on the appointment of accounting authority members across Sector Education and Training Authorities (SETAs).

The audit queries focus on the statutory and policy criteria governing board selections under the Skills Development Act, No. 97 of 1998. The DHET confirmed that the audit process remains incomplete and that it is submitting reconciliations between existing legislative provisions and verified candidate documentation to AGSA.

Statutory Framework and Appointment Criteria

Addressing specific AGSA findings concerning candidate qualifications and board selection procedures, the DHET highlighted several key legal determinations:

  • Statutory qualification requirements: The Skills Development Act, No. 97 of 1998 does not prescribe a specific qualification threshold — such as an NQF Level 7 — as a mandatory statutory prerequisite for appointment to a SETA accounting authority, though collective leadership and governance expertise remain requisite.
  • Due diligence conditions: Appointment letters issued to accounting authority members impose suspensive conditions requiring completed qualification verifications and criminal-record clearances.
  • Selection transparency: The non-appointment of qualifying candidates in competitive selections does not constitute procedural non-compliance where candidate volumes exceed statutory vacancies, provided decisions align with published eligibility requirements.
  • Documentation and record-keeping: Identified gaps in selection documentation and procedural records are being incorporated into the department’s internal governance improvement programme.

Legislative Governance Review

The DHET confirmed that it has commenced a broader legislative review process to amend and refine the governance framework governing SETAs. The amendments intend to codify operational, record-keeping, and oversight obligations to eliminate discrepancies between administrative practice and compliance oversight standards.

What this means for you, your business, or your clients

  • For yourself: Professionals serving on or applying to SETA accounting authorities or sub-committees must confirm that all academic credentials, background checks, and professional clearances are fully documented and vetted prior to appointment.
  • For your business: Entities engaging with SETAs on sector skills programmes, mandatory grant submissions, or discretionary grant applications should monitor potential administrative delays while board appointments and internal committee delegations undergo statutory regularisation.
  • For your clients: Corporate clients relying on SETA accreditation, skills development levy claims, or learnership approvals should ensure compliance records align with currently gazetted statutory authority mandates to mitigate operational risks during SETA audit scrutiny.

Originally published at https://www.sanews.gov.za/south-africa/department-engages-auditor-general-seta-board-appointments

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