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


Standard Constitution of SETA Regulations

8. Accounting Authority


(1) Duties of Accounting Authority


The Accounting Authority must—

(a) govern and manage the SETA in accordance with the PFMA. the Act and any other applicable legislation;
(b) ensure that the SETA achieves the objectives contemplated in item 5 and performs the functions contemplated in item 6;
(c) provide effective leadership and to ensure that the SETA implements the goals of the NSDS and the Performance Agreement with the Minister;
(d) provide a strategic direction for the SETA;
(e) liaise with stakeholders;
(f) ensure that the SETA complies with the relevant statutory requirements and the requirements of this constitution;
(g) manage institutional risk;
(h) monitor the performance of the SETA;
(i) ensure that its members and the members of the committees established by it, comply with the Code of Conduct set out in Annexure 2.


(2) Powers of Accounting Authority


The Accounting Authority may—

(a) exercise all the powers necessary in order to enable it to perform its functions in terms of the Act, this constitution and any other relevant legislation;
(b) exercise any other powers conferred on it by the Act, the PFMA, the SDLA, any other relevant legislation and this constitution;
(c) take decisions on any matter related to the performance of its functions in terms of the Act and this constitution;
(d) establish committees of the SETA to assist it in performing its functions; and
(e) establish chambers of the SETA contemplated in section 12 of the Act.


(3) Delegation of functions


(a) The Accounting Authority may delegate any of its functions to—
(i) the Executive Committee;
(ii) the Chief Executive Officer; or
(iii) to any other committee or chamber of the SETA.
(b) A delegation by the Accounting Authority is subject to such conditions as the Accounting Authority may impose and must be in writing, must state the terms and conditions of the delegation and must be recorded.
(c) Subject to any rights that may have vested as a consequence of the delegation, a delegation under paragraph (a)—
(i) does not divest the Accounting Authority of the function delegated and the Accounting Authority may at any time review, amend or set aside any decision made under the delegation;
(ii) does not prevent the performance of the function by the Accounting Authority itself; and
(iii) may be revoked by the Accounting Authority at any time.


(4) Size of Accounting Authority


(a) Except if the Minister approved a deviation to the number of members in accordance with section 13 of the Act, the composition of the Accounting Authority may not exceed 15 persons.


(b) The Accounting Authority consists of a chairperson and 14 members.


(5) Composition of Accounting Authority



(i) The Minister, after consultation with the NSA, must appoint a person as Chairperson of the Accounting Authority of the SETA.
(ii) The Chairperson has no voting rights, but in the case of an equality of votes the Chairperson has a casting vote.


(i) Subject to subparagraph (ii) and section 13(2) of the Act, the Minister must appoint 14 persons as members of the Accounting Authority of the SETA.
(ii) The members referred to in subparagraph (i) have full voting rights and are—
(aa) six persons nominated by organised labour;
(bb) six persons nominated by organised employers including small business or government departments that are employers; and
(cc) two persons nominated by—
(a) government departments that have an interest in the sector but the departments are not an employer as contemplated in subsection (2)(b);
(b) any interested professional body;
(c) any bargaining council with jurisdiction in the sector; or
(d) organisation of community which have an identifiable interest in skills development in the sector.
(c) Each constituency represented on the Accounting Authority must be represented by persons who are sufficiently representative of designated groups.
(d) The members of the SETA are listed in item 2(4) of Annexure 4.


(e) The Accounting Authority may, on good cause shown, recommend to the Minister the removal of any trade union or employer organisation listed in item 2(4) of Annexure 4.


(6) Nomination and appointment of members of Accounting Authority


(a) At least three months before the expiry of the term of office of the members of the Accounting Authority, the Chief Executive Officer must invite nominations for members for the forthcoming term of office, from organised labour, organised employers and the categories of role-players referred to in section 11(2)(b) of the Act within the Sector.
(b) Any person nominating another person for appointment as a member of the Accounting Authority must take into account the provisions of section 14(4) of the Act set out in item 3 of Annexure 5.
(c) The Minister must by notice in the Gazette invite nominations for the position of Chairperson of the Accounting Authority of the SETA from interested parties in the Sector.
(d) The Chief Executive Officer must provide members appointed to the Accounting Authority with formal letters of appointment on the SETA letterhead and must set out in the letter the duties and responsibilities of the members.
(e) Members must accept their appointment and declare in writing that they accept, and will be bound by, the Code of Conduct of the SETA on or before the induction date referred to in subitem (10).


(7) Consultation on proportional representation


(a) Organised employers must, by means of consultation, endeavour to reach agreement on the proportional division of members to represent the organised employers on the Accounting Authority.
(b) Organised labour must, by means of consultation, endeavour to reach agreement on the proportional division of members to represent organised labour on the Accounting Authority.
(c) If organisations cannot reach agreement on the proportional allocation of members then the principle of proportionality must be applied on the basis of the formula provided in item 4 of Annexure 4.


(8) Alternates for members of Accounting Authority


(a) The organisations contemplated in subitem (5)(b) may nominate an alternate for each member in the same manner as nominations for members.
(b) The number of alternates at any meeting may be no more than one third of the number of members contemplated in Annexure 4.
(c) A member and his or her alternate may not attend the same meeting.
(d) An alternate for a member has voting rights in the absence of the member he or she represented.
(e) A SETA may nominate the alternate members contemplated in paragraph (a) by nominating—
(i) one alternate for each member; or
(ii) such number of alternates per category of members contemplated in section 11(3)(a) to (c) of the Act as the SETA may determine and any of the alternates identified in a specified category may represent any member in that category who cannot attend a meeting.


(9) Term of office of members of Accounting Authority


(a) Subject to subitem (13), the term of office of a member of the Accounting Authority is five years.
(b) A member is eligible for reappointment upon expiry of that member's term of office but the reappointed members may not exceed one third of the members of the Accounting Authority in any one term.


(10) Induction and capacity building of members and alternates


The Accounting Authority must ensure that—

(a) within one month of taking office, the appointed members and alternates of the Accounting Authority attend an induction session that covers the purpose, mandate, management structures and processes, operations and governance practices of the Accounting Authority;
(b) within three months of taking office, members attend a training session that covers the role and responsibilities of—
(i) the Accounting Authority; and
(ii) the role and responsibilities of Members and how to discharge their duties;
(c) members receive training on an ongoing basis to enhance or update their understanding of the operations of the Accounting Authority and matters relevant thereto.


(11) First meeting at each new term of office of Accounting Authority


(a) The Chief Executive Officer must set a date for the first meeting of the term of office of a new Accounting Authority, which must be convened within two months of the establishment of the Accounting Authority.
(b) The Chief Executive Officer must notify the members of the Accounting Authority, in writing, of the date, time, venue and agenda of the first meeting.
(c) At that meeting, the members must—
(i) set the dates for forthcoming meetings during that year; and
(ii) take such other decisions as are necessary in order to ensure the prompt and effective functioning of the SETA.
(d) In the event that the Chairperson has not yet been appointed, the Chief Executive Officer presides over the first meeting of the Accounting Authority, whereafter the members must choose a chairperson from their own ranks, for each meeting convened until such time as the Chairperson has been appointed by the Minister.


(12) Suspension of members of Accounting Authority


The Accounting Authority may, on reasonable grounds and subject to subitem (13)(c), (d) and (e), recommend to the Minister the suspension of a member.


(13) Vacation of office by members of Accounting Authority


(a) A member of the Accounting Authority vacates office if that member—
(i) resigns by written notice, addressed to the Accounting Authority and the Minister;
(ii) no longer satisfies the eligibility requirements contemplated in Annexure 4; or
(iii) is removed from office in terms of paragraph (b).
(b) On the recommendation of the Accounting Authority, the Minister may remove a member—
(i) upon the written request of the organisation represented by that Member;
(ii) who is absent from three consecutive meetings of the Accounting Authority without prior and written permission of the Accounting Authority, unless the member shows good cause why he or she should not be removed;
(iii) due to permanent incapacity;
(iv) for serious misconduct;
(v) for failure to comply with any provision in the Code of Conduct contained in Annexure 2;
(vi) for conduct that undermines the Accounting Authority or brings the Accounting Authority or any of its members into disrepute; or
(vii) on good cause shown.
(c) Before recommending the removal of a member, the Accounting Authority must—
(i) give notice of its intention to do so to that member;
(ii) give reasons for the intention to recommend removal; and
(iii) give the member reasonable opportunity under the circumstances to make representations to the Accounting Authority.
(d) The Chairperson must inform the member in writing and in sufficient detail of—
(i) the allegations against the member; and
(ii) refer the matter to the Minister for an inquiry.
(e) The member must be given adequate time to prepare for the inquiry and may be represented at the inquiry by a person of his or her choice.


(14) Filling vacancies in Accounting Authority


(a) Subject to paragraph (b), if a member of the Accounting Authority dies or vacates office before the expiry of that member's term of office in accordance with subitem (13), the procedure contained in subitem (6) applies with the necessary changes.
(b) The replacement member must be from the same sector of the constituency from which the original member was appointed.


(15) Application to Accounting Authority by new organisation


(a) Any organisation that meets the criteria stated in subitem (5)(a) and that are not listed in Annexure 4, may apply to the Accounting Authority to be so listed.
(b) The Accounting Authority must list the organisation if the Minister has determined that organisation belongs in the Sector.