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


Constitution of the Health and Welfare Sector Education and Training Authority (HWSETA)

21. Taking over Administration of Authority


(1) The Minister may, after consultation with the NSA and the Authority concerned, by notice in the Government Gazette direct the Director-General to appoint an administrator to take over the administration of the Authority or perform the functions of the Authority if the Minister is of the opinion that—
(a) the Authority fails to perform its functions;
(b) there is mismanagement of the Authority’s finances;
(c) the Authority’s membership no longer substantially represents the composition contemplated in clause 9;
(d) the Authority has failed to comply with its service level agreement; or
(e) the Authority has failed to comply with an instruction by the Minister in terms of section 14B of the Act.


(2) The Director-General must publish a notice in the Government 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 Authority’s functions in terms of the PFMA;
(b) may suspend or replace one or members of the Authority for a reason contemplated in clause 21 (1);
(c) may suspend the operation of the Constitution of the Authority; and
(d) may direct the transfer of all or some of the funds in the Authority’s bank account to the National Skills Fund.


(3) If a notice is published in terms of clause 21(1) the Minister may, to assure that the Authority 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 mentioned in clause 21(2) on such conditions that the Minister considers appropriate.


(4) The Minister may act in terms of clause 21(1) without consulting the NSA and the Authority if there is financial mismanagement of the Authority and the delay caused by the consultation would be detrimental to the Authority’s capacity to perform its functions.