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Skills Development Act, 1998 (Act No. 97 of 1998)

Chapter 3 : Sector Education and Training Authorities

15. Taking over administration of SETA


(1) The Minister may, after consultation with the National Skills Authority, and the SETA in question, direct the Director-General to appoint an administrator to take over the administration of a SETA or to perform the functions of a SETA if—
(a) the SETA fails to perform its functions;
(b) there is mismanagement of its finances;
(c) its membership no longer substantially represents the composition contemplated in section 11.
(d) the SETA has failed to comply with its service level agreement; or
(e) the SETA has failed to comply with an instruction issued by the Minister in terms of section 14A.

[Section 15(1) amended by section 11(a) of Act No. 31 of 2003]


(2) The Director-General must publish a notice in the Gazette appointing an administrator and in that notice the Director-General—
(a) must determine the powers and duties of the administrator, which may include the performance by the administrator of the SETA’s functions in terms of the Public Finance Management Act;
(b) may suspend or replace one or more members of the SETA for a reason contemplated in subsection (1)(a) to (e);
(c) may suspend the operation of the constitution of the SETA; and
(d) may, direct the transfer of all or some of the funds in the SETA's bank account to the National Skills Fund.

[Section 15(2) amended by section 11(a) of Act No. 31 of 2003]


(3) If a notice is published in terms of subsection (1), the Minister may, to ensure that the SETA resumes the performance of its functions—
(a) amend its constitution;
(b) reinstate any of its members; and
(c) withdraw or amend any provision of the notice contemplated in subsection (2) on such conditions as the Minister considers appropriate.


(4) The Minister may act in terms of subsection (1) without consulting the National Skills Authority and the SETA in question if there is financial mismanagement of the SETA and the delay caused by the consultation would be detrimental to the SETA’s capacity to perform its functions.

[Section 15(4) inserted by section 11(b) of Act No. 31 of 2003]