Latest news with #NobuhleNkabane
Daily Maverick
a day 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
News24
3 days ago
- Politics
- News24
What's in City Press: Mkhwanazi's allegations ‘surprised' Mchunu
SAPS South African men arrested in Ukraine after promised medical roles turn to military training Two South African men, lured to Ukraine with enticing promises, now find themselves embroiled in legal trouble after being arrested in the war-torn country for alleged desertion. US sends more violent criminals and terrorists to Eswatini The Eswatini government has agreed not only to house five of the US's 'most barbaric' criminals in its prisons, but also to take custody of more than 150 terrorists. 'Mkhwanazi took me by surprise' - Senzo Mchunu Suspended police minister Senzo Mchunu has informed the Constitutional Court that KwaZulu-Natal police commissioner Lieutenant General Nhlanhla Mkhwanazi caught him off guard by publicly alleging that he was involved in protecting criminal syndicates. Nobuhle Nkabane: The face of the ANC's ugly cadre Introducing the Ugly Cadre, that ANC leader who typifies the worst character of the party that has dominated SA over the past three decades, writes Mondli Makhanya. R269m road project becomes a dust bowl amid Free State graft scandal The Free State government has spent more than R269 million on a failed road maintenance project, the R709 between Tweespruit and Excelsior near Thaba Nchu. Family feud erupts over renovations to Nelson Mandela's Houghton home More drama has erupted in the house of Nelson Mandela, which has hogged headlines for all the wrong reasons, as the late struggle hero's grandchildren clash over his estate. Gospel star Benjamin Dube owes company R1m, risks losing assets Legendary gospel musician Benjamin Dube has been accused of reneging on a verbal agreement and could have his assets auctioned to pay off a R1 million debt. Desiree Ellis: Do yourself a favour, leave now and don't wait to be pushed With nearly a decade at the helm and a slew of achievements, is now the right time for Banyana Banyana's coach to pursue opportunities beyond SA football? asks Timothy Molobi SA military revives controversial Cuban technician deal The military, despite past challenges with contracts involving Cuba, is determined to proceed with a new plan to use Cuban technicians for vehicle maintenance. Tariff wars: SA hoping for deadline extension Government hopes that the US will extend Thursday's deadline for new trade tariffs, as no formal negotiations have yet taken place. Silent cries: SA's escalating youth suicide crisis With suicide now the second leading cause of death among the country's youth, experts emphasise the urgent need for destigmatising mental illness and increasing access to care, particularly for young people in schools and rural communities. ANC considers Lynne Brown, Ebrahim Rasool to lead charge in Western Cape According to ANC sources, the party's national leadership is contemplating disbanding its Western Cape structures and electing new leaders for the province. Pastor Enock Phiri bares all in book after heartbreak, alcoholism and redemption After an 18-year failed marriage and a short-lived four-month public relationship that left him heartbroken and battling alcoholism, renowned leader of the Restoration House Ministries in Soweto, Enock Phiri, has laid bare his struggles in a deeply personal book. Criticism after Mandela Foundation lauds initiatives tackling 'Christian Zionism' The Nelson Mandela Foundation has announced a prize of R150 000 for initiatives aimed at challenging 'Christian Zionism'. Will Gauteng's Integrity Pact deal with corruption in public governance? SA's procurement system is so riddled with multiple improprieties that it has even attracted sanctions from law enforcement agencies in countries such as the US, the UK and Germany. It is time to fix it, if democracy is to survive and thrive, writes Thuli Madonsela. Cosatu@40: Losi insists a lot has been achieved amid alliance tension as SACP pushes for ballot breakaway As cracks begin to show within the tripartite alliance, Cosatu finds itself walking a political tightrope. The union federation is facing renewed pressure to clarify its stance on the decision of the SA Communist Party (SACP) to contest the elections independently, a move that could deepen rifts within the alliance. Matjhabeng's EPWP payroll still feeds ex-councillors and ANC officials Former ANC ward councillors and a sitting party secretary are earning inflated salaries of more than R31 000 a month under the Expanded Public Works Programme (EPWP) in Matjhabeng in the Free State, despite the programme being intended for short-term work opportunities for unemployed and low-income South Africans. The harrowing journey to 'manhood' While other boys in the village, including myself, were playing with half bricks as cars and makeshift soccer balls from rolled-up plastics, 12-year-old Jeffrey Rakabe was getting ready to transition from a boy to a man. Cape Town Spurs make final push to challenge relegation With only a few days remaining before the start of the 2025/26 season on Saturday, Cape Town Spurs, who were relegated from the PSL at the end of last season in May, are still challenging their relegation. Coach Pogiso Makhoye and Orbit Tvet College principal Dika Mokoena have come a long way with the educational institution, with the pair having helped build the football club into a professional outfit. The North West has become the second province where a court order has stopped the start of a Safa women's league.
Daily Maverick
5 days ago
- Politics
- Daily Maverick
Letter to Mahlamba Ndlopfu — this week you finally found your backbone
Ah, Chief Dwasaho! We do, indeed, live in interesting times, my President. This week, you finally found your backbone, possibly somewhere under the presidential mattress at Phala Phala Game Reserve, and 'removed' someone from your bloated Cabinet. Hhawu, Matamela! You? Fire someone? And not just anyone – uGal herself! Minister Dr Nobuhle Nkabane, once the proud guardian of our nation's knowledge factories, is now reduced to a political footnote without a farewell bouquet. Did you not know, my leader, that 'Brand' Nkabane was a lifetime in the making? A carefully curated blend of ambition, gloss and Instagrammable grace. But alas, what the ancestors giveth, live television taketh away. I cannot unsee that fatal moment: the Honourable Minister's jaws in motion, chewing bubble gum with the vigour of a teenager bunking maths class, right there in Parliament's sacred halls. I am still flabbergasted. No song, no victory dance Sadly, my leader, the people of South Africa aren't exactly ululating in praise. No victory songs are being sung in taverns or taxi ranks. They murmur that you did not act with the urgency that the moment required. Clearly, they don't know you; Brand Matamela! Let's talk about Andrew Whitfield of the Democratic Alliance (DA), shall we? You took four full moons – yes, four – to remove him from the position of deputy minister of trade, industry and competition after he went AWOL overseas, armed with nothing but a passport and without your presidential blessing. That's right; there was no leave, no permission, just right-wing vibes. And yet, you dithered like a man trying to remember where he last saw his iPad. Seta saga But when it comes to former minister Dr Nobuhle Nkabane – a whole black woman with a hard-earned doctorate – you moved her faster than a Gupta jet fleeing from Air Force Base Waterkloof en route to Dubai. Why the haste, Matamela? What did she do that was so egregious? They say her great crime occurred last month when her panel, appointed to oversee the selection of 21 chairpersons and board members for the Sector Education and Training Authority (Seta) boards, wobbled under relentless public scrutiny. And yes, the 'panel' disappeared quicker than bubble gum dissolving under parliamentary questioning. But really, was that her fault? All she did was remain on brand: deploy cadres and flood the state with African National Congress (ANC) acolytes. In that regard, she followed the sacred text. Just like the Gauteng Department of Health, which has transformed hospital boards into halfway houses for ANC Youth League (ANCYL) 'leaders' with the so-called requisite experience – which, in plain British English, means they once handed out flyers at a branch general meeting four years ago. Whitfield, who? My leader, I hadn't heard of former deputy minister Whitfield before you pulled the trigger. I had to Google the poor chap to ensure he wasn't a backup flyhalf for the Stormers. But Nkabane, now she caught my attention. Not her policies, her speeches, but her honourable reference to Brand Nobuhle Pamela Nkabane after the sirens muted and the blue lights dimmed. I must admit that line stuck with me. It turns out she worked hard for her 'Brand'. A brand built, not on competence or clean governance, but on chewing gum, cadre deployment and curated photo ops. But hey, that is the core of the ANC Brand, right? At least, my President, there's a little cheer in the room. The DA applauded your axing of Dr Nkabane and hastily announced their support for your 2025/26 Budget proposals. What a relief, neh? Baas John Steenhuisen finally gave you the thumbs-up – for now. Perhaps this is what it takes: sacrifice a gum-chewing comrade on the altar of fiscal stability, voilà, and Budget passed. While you're at it, my leader, please send more moola to Tembisa Hospital. It appears comrades there need urgent funds, not for scalpels or syringes, mind you, but for legal fees. Word on the street is some need money for protection from the 28s in prison. Kubi. Theatre of the absurd But what truly baffles me, Comrade Leadership, is the theatre of the absurd now playing out in Parliament's far-left corner – the uMkhonto Wesizwe party caucus. His Worship – sorry, my bad, he now prefers the minimalist title, Dr Mandlakayise John Hlophe – is lobbing fireballs from the backbenches. He's throwing everything but the Nkandla kitchen sink, demanding your removal as if you'd misplaced your oath of office behind the Phala Phala wildlife sofa. And why? Because you had the gall to discipline a minister who got caught being clumsy. I mean, how dare Nkabane get caught? The problem was never the panel; it's that she failed to make it disappear properly. Meanwhile, Honourable Hlophe, a man well versed in being removed, has resurfaced with fury. He wants to know why you haven't also thrown the 'on-leave' minister of police, Senzo Mchunu, to the wolves. He said axing Minister Nkabane was nothing more than appeasing your favourite fiscal gatekeeper, DA leader Baas John Steenhuisen. Is this what we've become, Matamela? A democracy of musical chairs? You remove me, I remove you, and then we all fall. A festival of removals, funded by taxpayers and staged in press briefings and parliamentary plenaries? The poisoned chalice My leader, tell me – did another black woman with a doctorate sip from the poisoned chalice this week? Or shall we say, benefit from it? Was she not mentioned in the great Seta Saga not too long ago? The optics, Matamela, are terrible – like fishnet stockings at a funeral. You removed a black woman, Minister Dr Nobuhle Nkabane, ostensibly for deploying ANC acolytes to the Seta boards. Yet, you turned around, straight-faced, and did the same, just with different comrades and newer name tags. Of sins, PhDs and Buti Manamela And the real kicker? You replaced a woman who had curated an entire political 'brand' with a man with a funny name, Buti Manamela, a wannabe communist. If his ancestors wanted him to be minister, they could have given him a better name, like Manamela Manamela. See, it got groove. But not just any man – a black man, yes – but then you tossed in Nomusa Dube-Ncube, a doctorate-wielding woman, red regalia and all, into the role of Deputy Minister. Are you for real, Matamela? A whole PhD holder who reports to a minister, who answers to a Cabinet, that you only occasionally control? What is this? A Game of Thrones spinoff sponsored by National Treasury and shot in downtown Johannesburg? You axed one for alleged sins and rewarded another despite the same allegations clinging to their robes like stubborn chewing gum. So, who's fooling whom here, Comrade Leadership? Murder scene mentorships Honestly, my leader, you've had a far better week than the self-styled Sushi King, Patriotic Alliance deputy president Kenny Kunene. The former prisoner turned 'businessman' turned politician found himself – wait for it – not in the Johannesburg Council Chamber, not on a panel, but at the plush Sandton residence of one Katiso 'KT' Molefe, the alleged mastermind behind the murder of DJ Sumbody, real name Oupa Sefoka. The timing couldn't have been better: as Kunene arrived, the police swooped in to rearrest Molefe. Netflix dreams and empires Now, you'd think most public figures would have the good sense to socially distance themselves from murder suspects. But not Comrade Kunene. No, he embarked on an unbothered, unrepentant media tour, armed with a bold story that deserves a Netflix deal. According to him, he was accompanying a young journalist – a prodigy, no less – who's set to inherit his entire publishing empire, African News Global. This bright-eyed scribe, we are told, needed to interview Molefe, who, by the way, is awaiting trial in another murder case. The goal? To give 'Mr Sandton Businessman' a fair chance to respond to the allegations. I must confess: I, too, hope to have a mentor like Kenny Kunene one day. A man of means, morals and murder-scene meet-and-greets. A comrade who will hold my hand as I interview alleged killers. How tender. Not my chommie And to be clear, Kunene doesn't know Molefe. They're not friends, not associates, not comrades. Sound familiar? Just strangers in a lounge where the bloodstains are still fresh in the air. Nothing to see here, folks. Aah Leadership, July is the longest year since the Gregorian calendar was invented. Till next week, my man. Send me to Sandton to interview a murder suspect. DM
The Citizen
6 days ago
- Politics
- The Citizen
Nkabane's dismissal shows performance is finally being prioritised
Poor leadership, policy missteps, and stakeholder neglect made Nkabane's position in higher education untenable. Dr Nobuhle Nkabane at the official launch of the National Skills Fund (NSF) Disabilities Programme Phase I at Blind SA. (Photo by Gallo Images/Fani Mahuntsi) There was little surprise this week when President Cyril Ramaphosa fired higher education and training minister Nobuhle Nkabane as her position became untenable. She misled parliament in a portfolio committee regarding the appointments of the Sector Education and Training Authority board. Her short stint at the helm of one of the most complex and politically sensitive portfolios was also marred by administrative missteps, a breakdown in communication with key stakeholders, and a failure to provide clear, strategic leadership during a critical time for the sector. While Cabinet reshuffles often raise questions about internal party dynamics, this decision appears to have been driven by performance and public outcry, rather than politics. Nkabane inherited a department already under immense strain. South Africa's higher education sector faces a multitude of challenges: from underfunding and student debt to overcrowded institutions and a widening gap between education and employment. ALSO READ: Why the ANC remains a safe haven for corruption Rather than stepping into the role with decisiveness and clarity, Nkabane struggled to manage the operational demands of the department. Her most notable failure was her mishandling of the crisis surrounding the National Student Financial Aid Scheme (Nsfas). The rollout of a new direct payment system, using third-party service providers, led to widespread delays, disbursement errors, and student protests across the country. Despite repeated warnings from student unions and technical experts, the department failed to take corrective action or adequately communicate with affected students. Nkabane's public appearances during this period often came across as defensive, reinforcing perceptions that she was out of depth. Compounding the Nsfas debacle was a broader failure to engage constructively with the very stakeholders she was meant to lead. Student organisations such as the South African Union of Students accused her of ignoring urgent meeting requests during protest actions. ALSO READ: Parliament concludes Seta panel never existed Several university vice-chancellors also reported difficulty engaging with her office on campus safety, infrastructure development and funding allocations. At a time when decisive leadership and open communication were essential, Nkabane remained inaccessible and silent, allowing tensions to escalate on campuses. Perhaps most telling, however, was her inability to articulate a long-term vision for the department. Her public addresses were laced with vague commitments to transformation and inclusion, but these sentiments were rarely backed by concrete policy or institutional reform. No significant advances were made in addressing curriculum reform, expanding digital access, or tackling the mismatch between higher education output and labour market needs. Her leadership simply did not inspire confidence. In contrast, the promotion of Buti Manamela to the ministerial position represents a return to experience and substance. Having served as deputy minister for several years, Manamela has built a solid reputation for being hands-on, accessible and knowledgeable. ALSO READ: Five things you need to know about the new higher education minister Buti Manamela Ramaphosa's decision to remove Nkabane and elevate Manamela should be viewed as more than a political adjustment – it is a statement about the value of competence in public office. For far too long, Cabinet appointments have been seen as rewards for loyalty rather than results. In this instance, the move suggests a growing recognition that performance must take precedence, especially in departments that impact millions of young South Africans and the future of the country's economy. While this shift is welcome, it must not stop here. The education sector requires leadership that is responsive, accountable and visionary. In firing Nkabane and promoting Manamela, Ramaphosa has taken a step towards restoring integrity and functionality in higher education. The hope now is that this signals the beginning of a broader commitment to putting the right people in the right places – for the right reasons. NOW READ: 'Long overdue' – Opposition parties welcome Nkabane's removal
Yahoo
7 days ago
- Business
- Yahoo
South Africa's Ramaphosa Axes Education Minister
South African President Cyril Ramaphosa ousted his Higher Education and Training Minister Nobuhle Nkabane, easing tensions within the governing alliance and clearing the path for the national budget to be approved. Bloomberg's Jennifer Zabasajja reports. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
