The Congress of South African Trade Unions (COSATU) is deeply concerned by the troubling revelations at the Education, Training and Development Practices Sector Education and Training Authority (ETDP SETA). The SETA is at the centre of a dubious lease agreement, which is now under forensic investigation.

This involves a bidding process for head office space to accommodate employees from July 2024 to March 2030. The over R50 million rand contract in question was allegedly signed and awarded to a service provider despite security and environmental concerns pointed out by internal structures. The building located in Marshalltown Johannesburg posed significant risk to the safety of personnel and lacked sustainability. Notwithstanding the harrowing non-compliance, the SETA continued to pay over R690,000 monthly for roughly two years, amounting to over R15 million rand, while personnel worked from home, resulting in fruitless and wasteful expenditure.  

Even more worrying are the latest reports fingering former CEO, Nombulelo Nxesi, as the one who made the final decision to award the dubious contract – the document bears her signature. This is gravely concerning as it alludes to the fish rotting from the head.

Such disturbing governance practices go against the objective of Sector Education and Training Authorities (SETAs) which are funded by the state through taxpayer’s money. The entities are key to bridging the gap between the unacceptable high levels of unemployment and the economy.

COSATU supports its affiliate, the South African Democratic Teachers’ Union (SADTU), in calling for the protection of public funds meant for the upskilling of workers and restoring the credibility and integrity of the national skills development system. This is in line with the core principles of the Federation, denouncing all forms of corruption at government entities.

Whilst the Federation appreciates the Minister of Higher Education and Training’s swift response to initial media reports, followed by the law enforcement agencies, we trust that investigations will be expedited to get to the bottom of the allegations and lead to consequential action against the senior executives who are alleged to be implicated in the matter.

Issued by COSATU

Nonzuzo Dlamini (Communication Officer)

Mobile: 066 194 3619

Email: nonzuzo@cosatu.org.za