The Portfolio Committee on Higher Education and Training has raised alarm over the Education, Training and Development Practices Sector Education and Training Authority’s (ETDP SETA) failure to provide adequate documentary evidence to account for its discretionary grant expenditure, despite the entity maintaining that no funds are missing.

The ETDP SETA appeared before the committee to respond to findings by the Auditor-General of South Africa (AGSA), which flagged R637 million linked to discretionary grants. The entity also faced scrutiny over claims that it had been paying R690 000 per month for a vacant building.

While the SETA rejected allegations that it could not account for R637 million, it told MPs the audit finding related to a “limitation of scope” rather than missing funds.

It further argued that the issue instead concerned 179 transactions totalling R116 million. However, AGSA indicated it had not received supporting documentation for those transactions.

Committee chairperson Tebogo Letsie said the confusion could have been avoided with clearer communication from the entity.

He noted that “the funds had not disappeared but remained in the discretionary grants account,” adding that “clearer communication from the outset would have prevented unnecessary public alarm.”

Despite this, MPs expressed concern that the SETA could not produce sufficient evidence to substantiate how the funds were spent. Members stressed that without proper documentation, AGSA was unable to verify the flow of funds or determine what had happened to the money.

Further concerns were raised over R42 million earmarked for student stipends that was not paid. The committee heard that the amount had been recorded as accruals from May 2024 before being reversed in July 2025.

The ETDP SETA attributed this to human error, an explanation that did little to ease concerns among lawmakers.

The committee also scrutinised the entity’s lease of office space, which reportedly stood empty while staff worked remotely.

Former ETDP SETA chief executive Nombulelo Nxesi told MPs that employees had been instructed to work from home because the head office was unsafe. She said the entity paid a total of R8.9 million over a 13-month “occupancy and transition period.”

Higher Education and Training Minister Buti Manamela described the allegations as serious, particularly given the impact on staff.

He told the committee the situation was concerning “particularly given that employees had been left without office space and had to work from home.”

Letsie said the issues pointed to failures in due diligence when the lease agreement was concluded.

“The problems identified after the lease agreement was signed pointed to a lack of proper due diligence.”

He added that “expert inspections and sound professional advice should have been secured before the agreement was concluded.”

He acknowledged that steps had since been taken to address the matter but emphasised that the situation could have been avoided.

This article was originally posted by IOL