Business Day


Business queries Nzimande’s reform of Setas

 
Busa believes minister’s attempts to control how Setas are run were overzealous
 
 
Sue Blaine, Business Day, Johannesburg, 11 April 2011
 
HIGHER Education and Training Minister Blade Nzimande’s attempts to take control of how SA’s sectoral education and training authorities (Setas) are run, while laudable, were overzealous, Business Unity SA (Busa) education and training committee chairman Vusi Mabena said on Friday.
 
The Services Seta said it was to approach the Labour Court for a declaratory order to ascertain whether changes made to the Seta’s constitution were legal. Each of the Setas has been asked separately to sign the same constitution.
 
"What the minister is doing shows symptoms of centralised control which are dangerous for effective implementation ... (but) he’s doing it out of concern (that some Setas are poorly managed)," Mr Mabena said.
 
Department of Higher Education and Training acting director-general Gwebs Qonde put the Services Seta’s reluctance to sign the new constitution down to resistance to change: " There will always be resistance from those who are benefiting from the status quo."
 
Last year, Mr Nzimande read Setas the riot act over training of "questionable quality" and overspending, saying that an average learnership cost between R40000 and R50000 — more than many university degrees.
 
Services Seta CEO Ivor Blumenthal said legal advice from law firm Edward, Nathan, Sonnenbergs was that Mr Nzimande’s changes were in breach of the Skills Development Act; if Mr Nzimande withdrew the constitution, the Services Seta would not pursue its legal quest .
 
Mr Nzimande has reduced the size of Seta boards, stipulated that two-thirds of the new boards will have no previous Seta board experience, and increased his power to appoint board members.
 
Mr Qonde denied Mr Blumenthal’s claim this was done without consultation, saying the department had "thoroughly consulted and engaged" with the Setas and had received "overwhelming support from most of them".
 
But another Seta CEO, who asked not to be named, said Setas had "major problems" with the new constitution Mr Qonde presented on March 18 because it "goes against the Skills Development Act". They had signed the new constitution "because we would rather be around than not", the CEO said.
 
Bank Seta CEO Max Makhubalo said he was meeting Mr Nzimande today to discuss the constitution.
 
The Construction Seta, which the minister has put under administration, is considering approaching Public Protector Thuli Madonsela regarding the legality of the new constitution.
 
Democratic Alliance (DA) higher education spokesman Andricus van der Westhuizen said the DA was worried about the possible harm of the "major" changes in Seta governance.
 
Mr Blumenthal said business might retreat from skills development and from providing workplace experience to Seta trainess because the constitutional changes deprived organised business and organised labour of a voice in how Seta money is spent. The Setas are funded by a levy of 1% of payroll for businesses with annual turnover higher than R500000.
 
Mr Mabena said while he hoped this would not happen, the changes did "leave room for that".
 
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