The Parliamentary Portfolio Committee on Education, Sciences and the Creative Industries said while failures in the sector education and training authorities (Setas) are mostly related to governance challenges and not the Seta model entirely, it echoes President Cyril Ramaphosa’s contention that Setas are not living up to expectations.

Speaking at the News24 On the Record Summit in Cape Town, Ramaphosa said government was working to overhaul the Seta system and replace it with a “fit-for-purpose” one that enabled young people to access jobs.

Ramaphosa acknowledged that the Seta model was not working.

The committee stated that the alleged "rot" in the Setas warranted more formal enquiry, and those found wanting should be taken to task.

“The President’s observations have been formed over time and offer South Africa an opportunity to reset, to ensure workplace training is fit for purpose. The Setas were set up to enhance skills training in our country, and the committee welcomes the President’s view that there needs to be a change in the Seta's focus,” said committee chairperson Makhi Feni.

However, he said it was worth noting that the failure in the sector was less about the Seta model than failing governance, adding that too much time had been spent stabilising governance of these entities.

The committee urged the Department of Higher Education and Training, which was the custodian of these entities, to start rethinking and if necessary remodelling the Setas in line with Ramaphosa’s call.

Feni explained that the Setas were a government intervention that sought to address workplace training needs while reducing the cost of training entry-level employees in various sectors, through a State-subsidised and incentivised programme.

“The country must not lose momentum on training needs and workplace experiential training and learning. The committee supports the President’s call for a change, as the recent talk [of reforming Setas] has been on noncore operations of Setas, like board appointments,” he said.

Further, he said any new model must be established between employers and Setas without compromising current employees.

Meanwhile, the Setas are facing severe corruption allegations, with reports from Organisation Undoing Tax Abuse indicating widespread financial mismanagement, misappropriation of funds and tender irregularities.