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Daily Maverick
3 days ago
- Business
- Daily Maverick
Corruption and collapse: How Services Seta blew R163-million and broke SA's skills promise
From fake companies winning multimillion-rand contracts to whistleblower warnings ignored, this exposé reveals how corruption flourished unchecked at South Africa's Sector Education and Training Authorities (Setas). As pressure mounts for reform, the question remains: will new leadership break the cycle of corruption? Long before axed higher education minister Nobuhle Nkabane took office, the Sector Education and Training Authority (Seta) was already under a cloud of corruption and governance failures. Tasked with managing training levies and skills development in the services sector, the Services Seta has been dogged since 2018 by allegations of tender irregularities and financial mismanagement, exposed through investigations by watchdog group Organisation Undoing Tax Abuse (Outa). How the Services Seta missed every red flag At the heart of the Services Seta scandal lies a R163-million contract for biometric units meant to track learner attendance and manage stipend payments. Shockingly, the tender ran for just four days — far short of the Treasury's 21-day requirement — and bids were evaluated a week before the closing date. The contract went to Grayson Reed — a shell company with no track record, no South African Revenue Service (SARS) declarations, and no real capacity to deliver. Investigators later revealed that the name itself was bogus. Despite glaring red flags, the Seta's bid committees waved the deal through. Outa says this blunder cost taxpayers more than R163-million. Outa's investigation also uncovered serious financial irregularities in the execution of the contract. Grayson Reed submitted travel and accommodation claims exceeding R2.1-million, many lacking proper supporting documents. Some invoices were allegedly fraudulent, while others billed for expenses incurred by unrelated parties. Suspiciously high fuel and Uber claims suggested daily double-charging, with duplicated invoices slipping through. Despite the red flags, senior Services Seta officials — including Project Accounting head Mpho Teffo and CFO Tsheola Matsebe — authorised the payments, raising alarm bells over the Seta's internal controls. The contract's pricing was equally alarming — items like exam pads and USB sticks were inflated by up to 8,000%. Learners reported delayed stipends, faulty biometric devices, and underpayments. Strangely, records showed Grayson Reed paid its supplier more than it charged the Seta — raising red flags around possible kickbacks or financial mismanagement. Despite Outa's repeated calls for cancellation and investigation, the Services Seta only terminated the contract six months early, in 2019, with no funds recovered and no criminal charges laid. More contracts and more questions The Grayson Reed saga was not a one-off. In June 2023, Outa uncovered yet another case of suspect spending at the Services Seta — a R36-million contract handed to Five Star Communications and Projects for branding materials. A branded tender box costing R302,000 — marked up by over 8,000% — was among 29 inflated invoices paid to Five Star without question, all approved by then-CEO Andile Nongogo and branding head Duduzile Mwelase. Outa has since laid criminal charges with SAPS against the pair and two Five Star directors, citing fraud, corruption and breaches of the Public Finance Management Act. The Werksmans report: confirming the suspicions Under intense pressure from Outa and Parliament, the Services Seta commissioned Werksmans Attorneys in early 2023 to investigate procurement irregularities across multiple contracts. Werksmans' findings confirmed whistleblowers' worst fears — exposing deep rot in the Services Seta's procurement processes. Contracts were pushed through in as little as five days, with payments made before verifying delivery. In one shocking case, a contract ballooned from R6.6-million to R89-million with no valid explanation. Even committee setups were flawed — some decisions appeared to rest on just one improperly appointed member. Adding to the turmoil, the Auditor-General issued a qualified opinion on the 2023/24 financials, citing poor record-keeping, material misstatements and glaring control failures. Irregular expenditure topped R193-million for the year — pushing the total to a staggering R1.26-billion. Impunity persists Daily Maverick spoke to Wayne Duvenage, the CEO of Outa, who said that while Outa had exposed multiple irregularities, particularly concerning tender manipulation and contract awards, in many cases the incumbents had remained in their positions. 'We try to get the boards to recognise misconduct or maladministration. If they don't act, it becomes very difficult for us to effect any meaningful change,' he said. The 2023/24 annual report shows that disciplinary cases over irregular spending remain unresolved. Daily Maverick contacted the Services Seta for comment on 9 July, but the organisation did not respond to queries on the status of these cases. In hearings in October 2024, committee members condemned the Services Seta's leadership for ignoring the Werksmans report and failing to hold anyone accountable, warning that this impunity eroded public trust and fuelled corruption. Outa laid criminal complaints against Nongogo with SAPS in June 2023 over corrupt practices involving overpriced contracts awarded by the Services Seta. Nongogo was implicated alongside other officials for approving exorbitant payments and fraudulent activities. Nongogo was later appointed as NSFAS CEO in 2024. Do Seta boards dodge the old playbook? On the issue of Seta board appointments, Duvenage said that the former minister should have come up with a different approach. 'The chairperson and board members are in powerful positions, and they must be strong people appointed to exercise effective oversight. The minister knows, and we've told her, that these Setas have corrupt networks that infiltrate and use executive positions to control tender flows,' he said. 'We need skilled, credible board members with the moral courage to stand up to corruption,' said Duvenage. 'The public are not fools — we won't just accept anyone in these positions.' In June, Nkabane told Parliament that her selection of 21 Seta chairpersons was guided by an advisory panel including advocate Terry Motau SC and several senior officials. But that claim is now unravelling — Motau says he was never formally involved, and others named have also denied participating in the final decisions. Their denials cast serious doubt on the accuracy of the minister's version of events. The way forward Reflecting on South Africa's investment in skills development, estimated at R21-billion annually, Duvenage said the returns had been inadequate. He reiterated that a systemic overhaul was urgently needed. 'There must be a summit, bringing together government, business, service providers, evaluators, civil society and citizens to map out a new way forward,' he said. Duvenage called for an industry-led approach, with businesses identifying skills needs instead of the government dictating priorities. He warned that credible business leaders were stepping back due to political interference, saying: 'The system has collapsed. It's not working.' South Africa's Setas stand at a crossroads, their promise of skills development overshadowed by corruption and mismanagement. Without urgent reform and accountability, public trust will continue to erode, and the country's workforce will ultimately bear the consequences. DM
New Indian Express
5 days ago
- New Indian Express
Three held with cough syrup, sedatives in Odisha's Bargarh
BARGARH: In another significant crackdown on illegal drug trade, Bargarh Town police seized a massive cache of codeine-laced cough syrup bottles and sedative tablets during an early morning raid in Bisipada area on Saturday. Acting on intelligence inputs, a team led by sub-inspector Alok Kumar Mahalik raided a location and apprehended three persons allegedly involved in the illegal trade. It led to recovery of 1,970 sealed bottles of Wincerex and Eskuf cough syrup, commonly misused for intoxication besides 1,000 Nitrosun tablets, a sedative regulated under the NDPS Act. Police also seized two mobile phones, and two two-wheelers. used for transportation The three arrested were identified as Uttam Sindria (26), Ritik Gartia (22) and Rohit Gartia (26). During investigation, police found that accused Uttam is a history-sheeter with eight previous cases registered against him under Town police limits. Rohit has two prior cases, while Ritik Gartia has no past criminal antecedents. A case has been registered under sections 111/61 (2)/3 (5) of the Bharatiya Nyaya Sanhita (BNS) and Sections 21 (b) and 29 of the NDPS Act, said SDPO,0 P Tripathy. Police said further investigation is underway to identify the source of the contraband and bust the larger network behind the illicit supply chain. On Monday, Town Police had arrested seven individuals and seized 2,171 bottles of cough syrup during a pre-dawn raid in the same area.
Daily Mirror
23-07-2025
- Sport
- Daily Mirror
Pau Alsina: JuniorGP World Championship star dies aged 17 following horror crash
Pau Alsina suffered severe injuries to his head after he was thrown from his bike at the MotorLand Aragón circuit, near Alcañiz, Spain, and doctors were unable to save the teenager A rising motorcycle star has died aged just 17 after a horror racing smash. Pau Alsina sustained head injuries when he was thrown from his bike. He died in hospital on Monday two days after the crasg, which happened during the JuniorGP World Championship at the MotorLand Aragón circuit, near Alcañiz, eastern Spain. Pau was rushed to a hospital in Zaragoza, where he underwent emergency surgery. Despite the swift medical intervention, the 17-year-old racing star died from his injuries. The teenager, from Sallent in Catalonia, began riding motorcycles aged three. He was one of the standout talents in the Estrella Galicia 0,0 team and had already started making a name for himself in this season's JuniorGP World Championship. Pau was ranked 13th in the overall standings and had scored points in every race except the first. He was also competing in the Italian CIV Moto3 Championship, where he sat in fourth place overall with two podium finishes to his name. He was among a new generation of Spanish riders tipped for greatness. Pau often said in interviews that his idols were the Márquez and Espargaró brothers. His team said in a statement: "Pau's commitment, energy, and always positive and warm attitude will remain with us forever. Rest in peace, Pau. We love you." The Sallent City Council held a day of mourning yesterday and a minute's silence in the youngster's memory. Six-time MotoGP champion Marc Márquez posted his condolences to Pau Alsina in an Instagram story, writing: "No words. How unfair life is. Rest in peace, Pau." The circumstances of the crash are not yet clear and remain under investigation. The tragic news comes just weeks after another Spanish rider, Borja Gómez from Murcia, of the Stock class, passed away following an accident while preparing for the previous race event as part of the circuit, in Circuit de Nevers Magny-Cours in France. Last year, a MotoGP star was airlifted to hospital after being involved in a 120mph crash during the Australian Grand Prix Sprint race. Italian rider Marco Bezzecchi hit the back of Spain's Maverick Vinales on the first corner at the Phillip Island circuit. The two riders both went flying off their bikes, with the incident described as a "massive crash" by the MotoGP commentator. But Vinales has been declared fit after the incident but Bezzecchi was airlifted to hospital in Melbourne to undergo a full checkup. Despite impacting at 120mph, Bezzecchi is understood not to have suffered any fractures or serious injuries.
IOL News
21-07-2025
- Business
- IOL News
The Roy Moodley Legacy Cup: A new initiative for young football stars in KwaZulu-Natal
Durban businessman Roy Moodley is funding a football tournament that will be played in Durban later this month. Image: Supplied IN A move to empower the youth of KwaZulu-Natal, Durban businessman Roy Moodley has committed to nurturing budding football stars, believing that engagement in sports can deter young people from destructive paths. Moodley will provide funding for a local Safa football tournament, which begins later this month, with a prize purse of around R60 000. Speaking to Daily News, Moodley expressed his heartfelt conviction that sports played a crucial role in keeping young individuals fit, healthy, and focused. 'Sports keeps the kids out of the street and occupies them to stay clear from drugs and gangsterism. My aim is to encourage them to participate in sports and not engage in illegal activities,' he affirmed. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Despite his recent attempt to acquire the status of the Royal AM football club, a pursuit that did not materialise, Moodley has redirected his focus towards community empowerment through sports. Previously, he had invested substantial resources, and was poised to to spend R50 million to secure the club's status, as reported by Sportswire. However, negotiations with the Premier Soccer League (PSL) faltered, leading him to abandon his attempt. 'I have abandoned that quest; I am now going to concentrate on empowering young people through sports,' he remarked. Moodley also attempted to purchase the SuperSport United franchise that was up for sale more recently but the Minister of Sport's (Gayton McKenzie) son, Calvin Le John, was the successful bidder. Unperturbed, the businessman shared his ambitious vision for the upcoming Roy Moodley Legacy Cup, aimed at fostering young leaders both on and off the football pitch. 'This tournament will not only showcase talent but will also aid in developing responsible, future leaders,' he outlined. The inaugural Roy Moodley Legacy Cup is slated to take place later this month at Hoy Park, and promises to reward participants generously. The winning team will receive R30,000 as prizemoney, while the runners-up will take home R15,000. Additionally, the two semi-finalists will earn R5,000 and R1,200, respectively. Moodley, a well-established entrepreneur at the age of 71, is the founder of Royal Security, which has grown to become one of the largest private-sector safety and security companies in KwaZulu-Natal. Apart from his sports contributions, he has also made a name for himself as a racehorse owner and breeder, which underscored his diverse business interests and commitment to community development. DAILY NEWS
