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


Standard Constitution of SETA Regulations


Annexure 2 : Code of Conduct


1.        Introduction


This document outlines the SETA's Code of Conduct ("the Code")


2. Application of Code


(1) All Members of the Accounting Authority, the chambers and any committee established by the Accounting Authority are subject to this Code of Conduct and are required to comply with both the letter and the spirit of the Code.


(2) The Members of the Accounting Authority, the chambers and any committee established by the Accounting Authority—
(a) stand in a fiduciary relationship to the SETA;
(b) must comply with all the applicable laws and regulations that regulate the activities they are engaged in for and on behalf of the SETA;
(c) must perform their functions fairly, honestly and in good faith, giving full effect to the obligations and spirit of the Act and this Constitution;
(d) must protect and promote the reputation of the SET A and promote goodwill towards it;
(e) must perform their duties conscientiously and in the best interest of the SETA; and
(f) conduct themselves ethically and in accordance with the principles of good governance.


(3) In order to ensure the proper execution of its mandate and effective compliance with the applicable legislative and policy framework, the Accounting Authority must ensure that the staff of the SETA and members of all committees and chambers, adhere to the following principles of governance:
(a) Effectiveness and efficiency in the execution of their specified mandates, which require clearly formulated purpose statements, objectives, roles and responsibilities;
(b) Accountability for meeting their specified mandates, which requires effective accountability mechanisms, proper management, control and the safeguarding of finances and resources, as well as regular and accurate performance reviews, assessments and reporting;
(c) Integrity and honesty in the management of finances and resources, which require observing and promoting high standards of ethical conduct, proper execution of fiduciary duties, independence from vested interests and avoiding undue influence and a conflict of interests;
(d) Transparency and openness, which require fair, transparent and accessible rules, processes and procedures; the consistent application of these rules, processes and procedures; transparent and motivated decision-making; and timely and accurate provision of information to a higher authority, stakeholders and the public;
(e) Participation in the development and implementation of public policies, where appropriate, which requires the active involvement of beneficiaries, stakeholders and other affected groups in the formulation of policies and programmes;  promoting ownership of policies and programmes; stakeholder commitment to their success; and consultation with, and representation on institutional structures; and
(f) The capacity and resources to execute their mandate, which require appropriate selection and capacity-building, in order to ensure that Members and staff have the necessary skills, knowledge and experience.


3. Conflict of Interests


(1) A person may not be appointed on the Accounting Authority, unless the necessary disclosure has been made that—
(a) such person, directly or indirectly, whether personally or through his or her spouse, partner or associate, has a direct or indirect financial interest in the SETAs; and
(b) such person or his or her spouse, partner or associate, holds an office in or is employed by any SETA, organisation or other body, whether corporate or incorporate, which has a direct or indirect financial interest of the nature contemplated in paragraph (a).


(2) If at any stage during the course of any proceedings before the Accounting Authority it appears that any member of the Accounting Authority has or may have an interest which may cause such conflict of interest to arise on his or her part—
(a) such member must forthwith fully disclose the nature of his or her interest and leave the meeting so as to enable the remaining members to discuss the matter and determine whether such member is precluded from participating in such meeting by reason of a conflict of interest; and
(b) such disclosure and the decision taken by the remaining members regarding such determination must be recorded in the minutes of the meeting in question.


(3) If any member fails to disclose any interest required by subsection (2) or, subject to the provisions of that subsection, if he or she is present at the venue where a meeting of the Accounting Authority is held or in any manner whatsoever participates in the proceedings of the Accounting Authority, the relevant proceedings of the Accounting Authority is be null and void.


4. Gifts and Benefits


(1) Gifts, hospitality and entertainment may only be offered to a third party if they are consistent with accepted practice, modest in value, not in contravention to the Public Financial Management Act and where public disclosure thereof would not embarrass the SETA.


(2) Members should not accept gifts, hospitality or other favours from suppliers of goods or services.


(3) Members may not accept personal favours or other preferential treatment that might place the recipient under any obligation.


(4) The Accounting Authority must, within six months of taking office, develop or review policy guidelines for inclusion in this Code of Conduct which are in line with the deviation processes of the constitution.


5. SETA Resources


(1) Members may not abuse the financial and other resources of the SETA.


(2) Members must at all times ensure that the SETA's financial and other resources are used for legitimate business purposes only.


(3) When funds are to be spent, it is the responsibility of Members to use sound judgment and to ensure that appropriate value is received by the SETA for such expenditure.


(4) Members, who become aware that the SETA's funds or property have been used, are being used or may be used in a fraudulent or improper manner, must immediately and in confidence advise the Chairperson.


6. Accounting Standards


(1) The SETA's financial books and records must reflect all transactions in an accurate and a timely manner and in conformity with generally accepted accounting principles.


(2) Non-disclosure of revenue, expenses, assets or liabilities is not permitted.


(3) Members responsible for accounting and record-keeping functions are expected to be diligent in enforcing proper accounting practices.


7. Security of Information and Intellectual Property Rights


(a) Only information necessary for SETA business may be collected, used and retained.
(b) Personal information of members should be obtained directly from the person or organisation in question.
(c) Only reputable and reliable sources should be used to supplement information contemplated in this subitem.



(a) No privileged or confidential information may be disclosed by any member without prior authorisation by the Executive Committee or the Chairperson, including but not limited to information regarding products, plans, transactions, personal information and salaries.
(b) Such information may only be disclosed if it must be disclosed in terms of the Act, the SDLA, any other applicable law or by an order of the court.


(3) Members of the SETA may not copy or reproduce, by any means, confidential or privileged information acquired during the performance of their functions for use other than for the execution of their functions in terms of the Act, the SDA, any other relevant legislation or this Constitution.



(a) Upon termination of their term of office members must hand over all documents, drawings, plans, electronic records, samples, models and other information to the Chairperson, as well as equipment and accessories in their possession or under their control, which may contain confidential or privileged information, or relate to or are in any way connected to the business and affairs of the SETA.
(b) Members are required, free of any consideration, to forthwith disclose to the SETA all discoveries, processes and inventions relating to, or that are useful to any business conducted by the SETA, that were made or conceived by them in the course and within the scope of their involvement in any of the affairs of the SETA, whether individually or in conjunction with others.


8. Contravention of Code


(1) Any contravention of the Code is a serious offence and, depending on the circumstances, may result in criminal charges being laid.


(2) Any member who believes that he or she may have contravened the Code must advise the Chairperson immediately.


(3) In the event that the Chairperson believes that the member has contravened the Code the Chairperson must immediately advise the Minister and other members of the Accounting Authority in writing of the alleged contravention.


(4) Any member who believes that a contravention of the Code by another member has taken place must report this, in writing, to the Chairperson, who must maintain confidentiality and must ensure that the matter is investigated impartially.


(5) Any member who believes that a contravention of the Code by the Chairperson has taken place must report this, preferably in writing, to the Minister.


(6) A contravention of the Code may result in disciplinary action being taken, which could result in a member being removed from office or termination of employment or membership of a committee or chamber of the SETA.