OF THE REPUBLIC OF SOUTH AFRICA - Parliament of the ...€¦ · part of the Register after adoption by the Committee, in a manner determined by the committee. Paragraph 9.20.1 stipulates

Tuesday, 28 February 2017] 1

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 24─2017

No 24—2017] FOURTH SESSION, FIFTH PARLIAMENT

PARLIAMENT

OF THE

REPUBLIC OF SOUTH AFRICA

ANNOUNCEMENTS,

TABLINGS AND COMMITTEE REPORTS

TUESDAY, 28 FEBRUARY 2017

TABLE OF CONTENTS ANNOUNCEMENTS National Assembly 1. Bill passed – to be submitted to President for assent ........................... 2 TABLINGS National Assembly and National Council of Provinces 1. Minister of Women in The Presidency ................................................. 2 COMMITTEE REPORTS National Assembly and National Council of Provinces 1. Ethics and Members’ Interests ............................................................. 2 National Assembly 1. Higher Education and Training ............................................................ 3 2. Higher Education and Training .......................................................... 20 3. Higher Education and Training .......................................................... 29 4. Higher Education and Training .......................................................... 41 5. Higher Education and Training .......................................................... 50 6. Higher Education and Training .......................................................... 66

2 [Tuesday, 28 February 2017


ANNOUNCEMENTS National Assembly The Speaker 1. Bill passed – to be submitted to President for assent

(1) Bill passed by the National Assembly on 28 February 2017:

(a) Financial Intelligence Centre Amendment Bill [B 33D

– 2015] (National Assembly – sec 75).

TABLINGS National Assembly and National Council of Provinces 1. The Minister of Women in The Presidency

(a) Revised Annual Performance Plan of the Department of Women

for 2016/17.

COMMITTEE REPORTS National Assembly and National Council of Provinces 1. Report of the Joint Committee on Ethics and Members’ Interests,

dated 16 February 2017 - Report on Members’ disclosures for 2016

1. Tabling of the Register

The Joint Committee adopted the 2016 Register of Members in terms of paragraph 9.20.2 of the Code of Ethical Conduct and Disclosure of Members’ Interests for Assembly (NA) and Permanent Council Members (NCOP).

2. Publication of the Register The Registrar, in terms of paragraph 9.20.2, must publish the public part of the Register after adoption by the Committee, in a manner determined by the committee. Paragraph 9.20.1 stipulates that any person has access to the public part of the Register.



3. Non Compliance with the Deadline

The Joint Committee had on 10 May 2016, set 31 August 2016 as the deadline for the Annual disclosure of Members’ financial interests. By the set deadline 55 disclosures were still outstanding. On 07 September 2016, the Joint Committee extended the deadline to 21 September 2016. On 21 September 2016, 17 disclosures were outstanding. 2 of these were new members sworn-in, in September 2016, after the local government elections. One was a member who had been seriously ill. The Joint Committee resolved to condone the late disclosures of the 3 members.

4. Penalties

Although the 14 outstanding disclosures were subsequently received, the Joint Committee resolved that the non-compliance and late disclosure by the affected Members should be investigated before any consideration of sanctions.

The Joint Committee wishes to express its appreciation to Members for the submission of their interests. The Joint Committee believes that this would enhance public trust and confidence in public representatives and also thereby protect the integrity of Parliament.

National Assembly 1. REPORT OF THE PORTFOLIO COMMITTEE ON HIGHER

EDUCATION AND TRAINING ON THE ANNUAL REPORT 2015/16

OF THE SOUTH AFRICAN QUALIFICATIONS AUTHORITY

(SAQA) AND THE COUNCIL ON HIGHER EDUCATION (CHE),

DATED 15 FEBRUARY 2017

The Portfolio Committee on Higher Education, having met with the South

African Qualifications Authority (SAQA) and Council on Higher Education

(CHE) on 26 October 2016, reports as follows:

Section 65 of the Public Finance Management Act (PFMA), 1999 requires

that Ministers table annual reports for departments and public entities for

which they are responsible for by 30 September each year. The Annual

Report 2015/16 of SAQA and CHE were tabled on 15 September 2016, and

it is against this background that the Portfolio Committee invited these

entities to present their annual reports.



1. Overview and analysis of SAQA and CHE Annual Report 2015/16

1.1 South African Qualifications Authority

1.1.1 Introduction and mandate

The South African Qualifications Authority (SAQA) is a statutory body

established in terms of the South African Qualifications Act, (Act No. 58 of

1995). It continues to exist under the National Qualifications Act (Act No.

67 of 2008). The NQF Act positions SAQA as the oversight body of the

NQF and the custodian of its values. SAQA is responsible for coordinating

the work of the Quality Councils (Umalusi, Council on Higher Education,

and the Quality Council for Trades and Occupations) and other NQF

partners.

SAQA’s functions as set out in the National Qualifications Framework Act

are:

• To provide advice, oversee NQF implementation and to collaborate

with the Quality Councils;

• To develop NQF policies and criteria;

• To maintain a National Learners’ Records Database (NLRD), and to

provide an evaluation and advisory service with respect to foreign

qualifications;

• Undertake research, collaborate with international counterparts, and

drive the communication and advocacy strategy to promote the

understanding of the NQF architecture; and

• To perform any function consistent with the NQF Act that the

Minister of Higher Education and Training may determine.

1.1.2 Overview and analysis per programme

During the year under review, SAQA had six budget programmes, namely:

Programme 1: Administration, 2: Registration and Recognition, 3: National

Learners’ Record Database, 4: Foreign Qualifications Evaluation and

Advisory Services, 5: Research and 6: International Liaison.

a) Programme 1: Administration

This programme covers the activities of the five sub-programmes, namely:

• Executive Office.



• Finance and Administration.

• Human Resources.

• Information Technology.

• Advocacy, Communication and Support.

During the year under review, this programme had a combined total of

26 targets spread across the five sub-programmes. Of these, 23 targets were

achieved as planned and three were not achieved as planned.

(i) Sub-Programme 1: Executive Office is responsible for the overall

coordination and organisational performance in response to SAQA’s

mandate. This sub-programme had seven targets, which were all achieved.

The targets that were achieved included:

• Progress was reported to the CEO Committee meetings quarterly on

the Monitoring and overseeing of the NQF implementation

Framework 2011 – 2015.

• The NQF Implementation Framework for 2015 – 2010 was approved

by the CEO and the SAQA Board.

• The Report on the Ministerial Guidelines 2015/16 was produced and

sent to the Minister.

• The Draft Policy on Misrepresented Qualifications was developed

and handed over to the Minister.

• An input was provided into the Minister’s Draft Recognition of Prior

Learning (RPL) Policy, and the Ministerial guidelines 2015/16 and

the Draft Ministerial guidelines 2016/17.

• The Report on the System of Collaboration was approved by the

SAQA Board.

• The Report on SAQA’s contribution to the Articulation Action Plan

was produced and approved by the SAQA Board.

(ii) Sub-programme 2: Finance and Administration is responsible for

effective financial and infrastructural governance and resources to support

SAQA’s objectives. There were three targets planned under this programme,

and two were achieved and one was not achieved as planned. The targets

that were achieved included:



• The entity’s finance policies and procedures were aligned to the

PFMA and National Treasury Regulations.

• 12 monthly management accounts and four quarterly reports in line

with National Treasury requirements were produced.

SAQA planned to achieve a clean audit. However, this target was not

achieved due to non-compliance with legislation in procurement of goods

and services.

(iii) Sub-programme 3: Human Resource is responsible for providing

strategic and operational human resource support to embrace diversity,

environmental sustainability and social justice to contribute towards the

delivery of SAQA’s mandate. There were seven planned targets under this

sub-programme, and six were achieved and one was not achieved as

planned. The targets that were achieved included:

• The submission of the Workplace Skills Plan (WSP) and Annual

Training Report by 30 April 2015.

• Online submission of the Employment Equity Report to the

Department of Labour by 31 January 2016.

• The development and approval of performance contracts for all staff.

• Completion of all staff assessments.

• Approval of the Learning and Development Plans for each

Directorate.

• The staff who qualified received performance bonuses.

The target that was not achieved was the development of the new

remuneration system for recognition and reward. The entity cited the delay

in the appointment of the service provider as the reason for not achieving

this target.

(iv) Sub-programme 4: Information Technology (IT) is responsible for

effective ICT governance and IT infrastructure resources to support the

achievement of organisational objectives and business processes. There



were five targets planned under this sub-programme and were all achieved.


• The development of an Integrated Knowledge Management System

and approval of the Knowledge Management Strategy Plan.

• The ICT Enterprise Architecture was approved by the Board.

• The servers were kept online more than 95 percent of the time

throughout the year.

• Full compliance with the IT related legislation and the approval of

the Enterprise Architecture by the Board.

(v) Sub-programme 5: Advocacy and Communication Support is

responsible for informing stakeholders and the public about the NQF,

SAQA and related matters. There were three planned targets under this sub-

programme, and two were achieved and the other one was not achieved. The

targets that were achieved included:

• The report on the implementation of Phase One of the NQF

Advisory Service Strategy was produced.

• A total of 607 802 individuals used one of SAQA’s digital media

platforms during the year, exceeding the target by 157 802 additional

people.

The target not achieved was to achieve a 5 percent increase over previous

year’s target for Awareness Understanding and Value (AUV) for policy

makers and policy implementers.

b) Programme 2: Registration and Recognition

This programme is responsible for registering high quality, nationally

relevant and internationally comparable qualifications and part-

qualifications that meet national criteria and articulate across sub-

frameworks, and to recognise professional bodies and to register

professional designations on the NQF. During the year under review there

were three targets planned under this programme and all were achieved. The




• 100 percent of the qualifications and part-qualifications

recommended by the Quality Councils (QCs) for registration on the

NQF were processed.

• 100 percent of the applications for the recognition of professional

bodies and 100 percent of applications for the registration of

professional designations were processed.

• Monitoring of 34.5 percent of the professional bodies that were

recognised by 31 March 2014.

c) Programme 3: National Learner’s Records Database

The programme is responsible for maintaining and further developing the

National Learner’s Records Database (NLRD) functionality which serves as

the key national source of information for human resource and skills

development in policy, infrastructure and planning. There were eight

planned targets under this programme, and seven were achieved and one

was partially achieved. The targets that were achieved included:

• A total of 1 078 302 learners were added to the NLRD and 857 702

qualifications achievements were recorded.

• Verification of 72 543 individual qualifications.

• 100 percent of all data received from QCs was successfully loaded.

• 100 percent of all data received from professional bodies that met

the criteria was successfully loaded.

• Quarterly tables on information added to the NLRD were produced.

• The 4TH Trends Report was produced.

• Four quarterly reports were produced for each quarter.

• 100 percent of applications for verifications were processed.

The target was not achieved in relation to the production of monthly

statistics on misrepresentation.

d) Programme 4: Foreign Qualifications Evaluation and Advisory

Services

This programme is responsible for evaluating foreign qualifications against

set criteria, including verifications of the authenticity of qualifications and



comparison of foreign qualifications with similar qualifications on the South

African NQF. During the year under review, this programme had three

targets, three were achieved and all were achieved as planned. The targets


• The Policy for the Evaluation of Foreign Qualifications within the

SA NQF was approved by the Board three months ahead of

schedule.

• 100 percent of all applications were processed.

• 111 cases of misrepresented foreign qualifications were included in

the Report on Misrepresented Qualifications.

e) Programme 5: Research

This programme is responsible for conducting evidence-based research to

evaluate the impact of the NQF and track the development and

implementation of the NQF. The programme had four planned targets and

all were achieved. The targets that were achieved included:

• The Research Partnership Monitoring Report was produced and

approved.

• A contract was signed with new research partner (Durban University

of Technology).

• A Report on NQF Impact Study 2014 was produced.

• The draft concept document on SAQA’s role in Ombuds function

was produced.

f) Programme 6: International Liaison

The programme is responsible for liaising with international partners on

matters concerning qualifications frameworks and sharing best practices

with the NQF family. The programme had seven planned targets and were

all achieved as planned. The targets that were achieved included:

• An article on the Addis Convention on the mutual recognition of

qualifications was produced.



• The bulletins, which included two articles on international trends

were produced.

• The participation in international forums was exceeded by three.

• The revision of the Malaysian Benchmarking report was completed.

• The workshop with NQF family on Addis Convention was hosted.

• The guidelines for good practice on learning that does not lead to a

qualification of part qualification was produced.

• The research report on trends related to national standards for

teachers and school leaders to Commonwealth Secretariat was

produced.

1.1.3 Financial performance

SAQA received an unqualified audit opinion with findings from the Auditor

General of South Africa (AGSA). This was the 19th unqualified audit

opinion from the AG. During the year under review, the entity had a total

revenue of R106.8 million. The total revenue was made up of R54.7 million

from a government grant, R9.5 million surplus funds from prior years and

R42.5 million revenue from exchange transactions (rendering services, rent,

sundry, and interest received on investment). The total expenditure at the

end of the financial year amounted to R98.7 million and a net saving of

R8.04 million. The personnel expenditure at the end of the financial

amounted to R65.09 million from the actual budget of R69.7 million.

General expenses expenditure amounted R29.1 million. The entity had

effected cost containment measures during the year under review on

consulting and projects fees, training and recruitment, print and photocopies

and conferences.

Though not identified by the AG, the entity incurred an irregular

expenditure of R710 000 during the year under review. This expenditure

was as a result of the agreement entered between the entity and the Durban

University of Technology as a research partner for research into TVET

college-Higher Education Institution articulation. It was reported that an

extensive process to appoint DUT was followed. However, the approval

process required the final approval for single-source selection to be

approved by the Executive Committee, which was not done.



1.2 Council on Higher Education

1.2.1 Introduction and mandate

The South African Council on Higher Education (CHE) is an independent

statutory body established in terms of the Higher Education Act No. 101 of

1997, as amended. The mandate of the CHE as the Quality Council for

Higher Education is to advise the Minister of Higher Education and

Training on all higher education issues, and it is also responsible for quality

assurance and promotion through the Higher Education Quality Committee

(HEQC).

In terms of the Higher Education Act, the mandate of the CHE includes the

following:

• To provide advice to the Minister of Higher Education and Training

on all higher education matters on request and on its own initiative.

• To promote quality and quality assurance in higher education

through its permanent sub-committee, the HEQC, including auditing

the quality assurance mechanisms of, and accrediting programmes

offered by, higher education institutions.

• To monitor the state of higher education and publishing information

regarding developments in higher education on a regular basis,

including arranging and co-ordinating conferences on higher

education issues.

1.2.2 Overview and analysis per programme

During the year under review, the work of the CHE was guided by its four

strategic goals, namely:

• Strategic Goal 1: to contribute to informing and influencing the

public debate on the policy framework for the transformation of the

higher education system and to become a recognised centre for

information and policy analysis on higher education.

• Strategic Goal 2: to contribute to the development of qualification

standards to ensure the relevance, comparability and currency of

qualifications.



• Strategic Goal 3: to promote quality and quality assurance in higher

education, including enhancing the quality of higher education.

• Strategic Goal 4: to ensure the efficient and effective provision of

corporate services – administrative, financial, technical and

professional, to support the discharge of the core mandate of the

CHE.

The entity had five budget programmes, namely: Administration,

Monitoring and Evaluation, Programme Accreditation, National Standards

and Reviews and Institutional Audits.

a) Programme 1: Administration

The strategic objectives of this programme are to; provide advice to the

Minister of Higher Education and Training on all higher education matters

on request and on the CHE’s own initiative, to ensure the development of

human resources management environment that enables staff to develop

their full potential, to ensure financial administration and supply chain

management is compliant with the requirements of the PFMA, and to ensure

effective governance and compliance of ICT statutory requirements.

During the 2015/16 financial year, the programme had seven planned

targets, and five were achieved and two were not achieved as planned. The


• 100 percent requests for advice responded to within the timeframe

requested.

• Three quality assurance forums for public and private institutions

and professional bodies were held.

• Development and implementation of ICT policies.

• 37 employees trained (target was 70 percent, achievement was

88 percent).

• 85 percent of organisational structure filled (target was 80 percent).



The targets not achieved as planned included:

• The number of pieces of advice on the Council’s own initiative on

issues identified as relevant flowing from the activities of the CHE.

• 100 percent review, update and development of finance and supply

chain policies (3% below the planned target).

b) Programme 2: Monitoring and Evaluation

The strategic objectives of this programme are to; monitor the state of

higher education, including publishing information and convening

conferences, workshops on development of higher education, to maintain a

database of learner achievements in higher education and submit the data to

the National Learners Records Database (NLRD) which is maintained by

SAQA.

The programme had four planned targets during the year under review and

all were achieved. The targets that were achieved included:

• Publication and distribution of the Vital Stats 2013 to institutions.

• Completion of the Review of the State of Higher Education 1994 –

2014 and Reflections on Academic Leadership.

• Publication of three research reports (Reflections, South African

higher education reviewed: Two decades of democracy and

Kagisano 10: Funding).

• 95 percent of private providers information uploaded (target was

80 percent).

c) Programme 3: Programme Accreditation

The strategic objectives of this programme are to develop and manage the

Higher Education Sub-Framework (HEQSF) including articulation of

qualifications between the three sub-frameworks and to accredit new

programmes submitted by public and private higher education institutions

and re-accredit existing programmes.

There were six targets planned under this programme and were all achieved.


• 100 percent of Category B programmes aligned with the HEQSF

with an HEQC outcome.



• 88 percent of new accredited programmes with an approved HEQC

outcome (target was 20 percent).

• 88 percent of new accredited programmes with an approved HEQC

outcome tabled within six months of screening (target was

60 percent).

• 65 percent of re-accredited programmes with an approved HEQC

outcome tabled within 18 months of screening.

• 67 site visits conducted to 33 institutions.

• Four training workshops for evaluators discipline groups/report

writing.

d) Programme 4: National Standards and Reviews

The strategic objective of this programme is to undertake national reviews

of existing programmes in specific subject fields and qualification level

offered by public and private higher education institutions.

There were seven targets planned under this programme, of which four were

achieved and three were not achieved as planned. The targets that were

achieved included:

• Four standards were developed.

• Standards Development Framework was finalised.

• 100 percent institutional improvement plans were received.

• The criteria/minimum standards and review manual for the LLB

review was approved by the HEQC.

The targets that were not achieved included:

• The finalisation of the national report on Bachelor of Social Work

(BSW) programme.

• Site visits by peer panels to evaluate the Bachelor of Laws (LLB)

offered by higher education institutions.

• One training workshop for evaluators/chairs of site visit panels

(target was 4).

The Council cited that the submission of the self-evaluation reports was

postponed due to delays caused by student unrest in 2015 and the



submission was postponed to May 2016. It also noted that the finalisation of

the National Report on Bachelor of Social Work programme was delayed

because the report writer left the country, and the work was reassigned to

another author.

e) Programme 5: Institutional audits

The strategic objective of this programme is to audit the quality assurance

mechanisms of higher education institutions.

During the year under review, the programme had four planned targets, and

three were achieved and one was not achieved as planned. The targets that

were achieved included:

• 100 percent monitoring of all progress reports received.

• Synthesis of results from the Quality Enhancement Programme

(QEP) Phase 1 focus areas based on the institutional data were

submitted.

• Five workshops for institutions to discuss synthesised report of

baseline data linked to QEP focus areas were conducted (target was

3).

The target that was not achieved included the submission of the Institutional

Reports on the QEP focus area. The Council cited disruptions at universities

in 2015 as the reason for not achieving the target.

1.2.3 Financial performance

The Council on Higher Education had a total revenue of 49.5 million during

the year under review. The baseline grant from the Department of Higher

Education and Training constituted 82 percent of the entity’s total revenue,

excluding funds rolled over from previous years. The Department Grant to

the CHE amounted to R40.8 million, which was 4.4 percent less than the

grant received in the previous year. The total expenditure at the end of the

financial year was R54.4 million, which exceeded the revenue. Personnel

costs for the year under review amounted to R28.3 million, which accounted

for 54 percent of the total expenditure, excluding depreciation and

amortisation.



The entity noted that its revenue from exchange transactions was higher

than the budget, due to more applications for accreditation being received

from private institutions as well as more interest received than anticipated

on the invested amount. Similarly, revenue from non-exchange transaction

was higher than the budget, due to a merger between the Programme

Standards Development and National Reviews, as well as approved surplus

from the prior year by National Treasury.

The CHE received an unqualified audit with matters of emphasis on;

performance targets not specific and measurable, performance indicators not

time bound, performance indicators not verifiable and well defined, and

overstatement of commitments.

2. Observations

The Portfolio Committee on Higher Education and Training, having

assessed the Annual Report 2015/16 of SAQA and the CHE, made the

observations:


• The entity was congratulated for its 20 years of implementing

the National Qualifications Frameworks (NQF) and for its 19th

unqualified audit report. It was further noted that South Africa

had one of the best NQF and it took lead in Africa;

• The 92 percent achievement against the planned targets in the

year under review was commended;

• The entity was commended for its efficient qualification

verification systems to detect misrepresented qualifications;

• It was noted that the policy on Misrepresentation of

Qualifications would require amendments to the National

Qualifications Framework Act;

• The entity experienced a high staff turnover in the year under

review, especially in the professionally qualified and skilled

level;



• The entity was commended for raising funds for the digitisation

of pre-1992 qualifications project;

• It was noted that the entity had ventured into mandates that were

not yet legislated, and this would have financial implications;

and

• The regression in the internal controls, which led to the non-

compliance with the supply chain management procedures was

noted as a concern.


• The severe financial constraints that the entity was operating

under was noted as a serious concern, given its critical role in

higher education;

• The increase in the overseas travel was noted as a concern given

the financial constraints of the entity;

• The entity was commended for undertaking to conduct another

cycle of Institutional Audits to improve the quality of higher

education;

• It was noted with concern that the entity did not have employees

with disabilities while the Employment Equity Act required all

public entities to recruit and employ people with disabilities;

• The entity experienced an increase in the printing costs owing to

a high number of publications that had to be printed; and

• There was an increase in the legal costs in the year under review

(R3 million) owing to a litigation by a private higher education

institution, over a decision by the HEQC in questioning the

quality of one of its programmes. The CHE did not have an

internal legal service department, and it had to outsource this

service.

3. Conclusion

The South African Qualifications Authority celebrated its 20 years in

existence in 2016, and it also presented its 19th unqualified audit opinion

from the Auditor-General. The Minister of Higher Education and Training



had also appointed the 6th SAQA board at the end of December 2015. It is

important to note that SAQA continued to deliver on its mandate in the

2015/16 financial year with a reputation of good governance. Some of

SAQA’s highlights for the year under review included; the recognition of

23 622 foreign qualifications, the recognition of 13 new professional bodies,

the registration of 36 professional designations, the verification of 72 543

National qualifications and winning the bid to host the Groningen

Declaration Network (GDN) meeting. Besides the entity’s achievements, the

Committee noted with concern the non-achievement of certain targets and

the deficiencies in the internal controls, which were also highlighted in the

AG’s report. Nevertheless, the entity’s ability to raise funds to implement

unfunded mandates was also commended by the Committee.

The Council on Higher Education presented its 2015/16 Annual Report

having operated under conditions of austerity that had impacted on its

ability to exercise its mandate efficiently. Nonetheless, the entity continued

to work according to principles of generally accepted practices, including

compliance with applicable laws. As a result, the entity received an

unqualified audit opinion from the AG. The performance information in the

year under review demonstrated that the entity took its legislated mandated

seriously, and it was able to respond promptly to all requests for advice

from the Minister of Higher Education and Training. The unprecedented

student protests experienced in the higher education sector in 2015,

contributed to non-achievement of some of the entity’s target planned for

2015/16 financial year.

The Committee expressed its support to both entities given the difficult

economic conditions of the country, which also impacted on government’s

ability to increase subsidies in support of the critical work these institutions

undertook in the post-school education and training sector.

4. Recommendations

The Portfolio Committee on Higher Education and Training recommends

that the Minister of Higher Education and Training consider the following:




• The entity needs to aim for a clean audit in the 2016/17 financial

year;

• The internal control systems should be strengthened to avert

irregular expenditure;

• The NQF Act should be amended to provide for the creation of

the Register of Misrepresented Qualifications, and

• Public entities should utilise the services of SAQA in verifying

the qualifications of applicants before they are appointed.


• The entity should explore other possible mechanisms to raise

additional funding to supplement the declining baseline grant

from the Department;

• The employment of people with disabilities should be prioritised

in compliance with the Employment Equity Act;

• The entity should prioritise the digitisation of publications to

avert the sharp increase in printing costs; and

• The entity should tighten its accreditation processes to defend

decisions taken by the Higher Education Quality Committee

(HEQC) in protecting students from the sub-standard

qualifications provision.

Report to be considered.



2. REPORT OF THE PORTFOLIO COMMITTEE ON HIGHER

EDUCATION AND TRAINING ON THE ANNUAL REPORT 2015/16

OF THE CULTURE, ARTS, TOURISIM HOSPITALITY AND

SPORT SECTOR EDUCATION AND TRAINING AUTHORITY

(CATHSSETA), DATED 15 FEBRUARY 2017

The Portfolio Committee on Higher Education, having met with the

CATHSSETA on 02 November 2016 reports as follows:

Section 65 of the Public Finance Management Act (PFMA), 1999 requires

that Ministers table annual reports for departments and public entities for

which they are responsible for by 30 September each year. The Annual

Report 2015/16 of the CATHSSETA was tabled on 15 September 2016, and

it is against this background that the Portfolio Committee invited this entity

to present its annual reports.

1. Overview and analysis of the CATHSSETA Annual Report 2015/16

1.1 Introduction and background

The CATHSSETA is a juristic body governed by the CATHSSETA

constitution and established in terms of the Skills Development Act 97 of

1998. The primary objective of CATHSSETA is to fulfil the requirements

of the Skills Development Act and its attendant regulations as well as to

strive to achieve for its specific sector, the goals as set out in the National

Skills Development Strategy (NSDS) III.

The Tourism and Hospitality SETA was established in 2011, during the

relicensing of the SETAs from 1 April 2011 to 31 March 2016. The SETA

was renamed the CATHSSETA after receiving the Creative Industries and

Heritage sub-sectors from what was then, the Media, Advertising Printing,

Packaging and Publishing (MAPPP) SETA.

The vision of the CATHSSETA is to be a leader in skills development

within its diverse sector. Its mission is to facilitate skills development

through strategic partnership for CATHSSETA to contribute to economic

growth.



On 16 October 2014, the Director-General of the Department of Higher

Education and Training placed the CATHSSETA under administration. This

was necessitated by the failure of the CATHSSETA in meeting its pre-

determined objectives and the infighting within the board, and its inability

to implement the findings of the Grant Thornton forensic investigation

report on irregularities within the CATHSSETA. Therefore, for the 2015/16

financial year, the entity did not have the Board as the Accounting

Authority. The Accounting Authority was the Administrator. The

Administrator’s term of office had since been extended twice, in October

2015 for another 12 months and extended again for another six months,

from 15 October 2016 to 15 April 2017.

1.2 Mandate

The work of the SETAs is informed by the National Skills Development

Strategy (NSDS) III, which is the overarching strategic guide for skills

development and provides direction to sector skills planning and

implementation in the SETAs. It provides a framework for the skills

development levy resource utilisation of these institutions as well as the

National Skills Fund and sets out linkages with, and responsibilities of,

other education and training stakeholders. The NSDS III has eight goals for

implementation by the SETAs which are:

• Establishing a credible institutional mechanism for skills planning;

• Increase access to occupationally-directed programmes;

• Promoting the growth of a public FET college system that is

responsive to sector, local, regional and national skills needs and

priorities;

• Addressing the low-level of youth and adult language and numeracy

skills to enable additional training;

• Encouraging better use of workplace-based skills development;

• Encouraging and supporting cooperatives, small enterprises, worker-

initiated, non-governmental organizations (NGOs) and community

training initiatives;



• Increasing public sector capacity for improved service delivery and

supporting the building of a developmental state; and

• Building career and vocational guidance.

The CATHSSETA operates within six sub-sectors, namely, Culture, Arts &

Heritage; Tourism and Travel Services; Hospitality; Sport, Recreation and

Fitness; Conservation and Gaming and Lotteries.

2. Overview and assessment of programme performance

During the 2015/16 financial year, the SETA had four budget programmes,

namely: Administration, Governance, Planning and Learning Interventions.

The programmes had a combined total of 75 planned targets. Programme 1:

Administration and Programme 4: Learning Interventions had the majority

of the programmes, 25 and 34 targets respectively. Of the total targets

planned during the 2015/16 financial year, 51 (68%) were achieved as and

24 (32%) were not achieved as planned.

2.1 Programme 1: Administration

The purpose of this programme is to enable the CATHSSETA to deliver on

the mandate by providing leadership, sound financial management,

organisational management, and administrative support. This programme

was made up of five sub-programmes, namely:

• Finance.

• Human Resources.

• Marketing and Communications.

• Knowledge Management and Information Technology.

There were 25 planned targets under this programme. Of these, 15 were

achieved and 10 were not achieved as planned. The targets that were

achieved included:

• The finalisation of 100 percent of procurement requests within the

prescribed time.

• 100 percent of reduction of irregular expenditure from the past

financial year.



• 96 percent of payments processed within 30 days (exceeded the

planned target by 6%).

• 76 percent of women in senior management (exceeded the planned

target by 16%),

• To ensure 99 percent of IT system availability.

• 100 percent of the entity’s campaign milestones and growth in the

use of the entity’s information sharing platforms (exceeded the

planned target of 20% by 295%).


• Percentage of vacancy rate (12% above the planned target of 15%).

• Percentage of payroll budget spent on training (0.2% below the

planned target of 1%).

• 1 percent of people with disability (0% achievement).

• 70 percent of the stakeholders’ awareness survey completed

(0% achievement).

• 1 Brand strength rating not completed before the end of the financial

year.

• 20 percent of bulk SMS communication sent to stakeholders

(0% achievement).

• Percentage of service level agreements (SLAs) with outsourced

services (44% below the planned target of 100%).

2.2 Programme 2: Governance

The purpose of this programme is to enable CATHSSETA to deliver on its

mandate through the provision of governance support services that ensures

accountability. This programme was made up of the Office of the Chief

Executive Officer. There were eight targets planned during the year under

review, and six were achieved and two were not achieved as planned.


• Five governance functional structures.

• 80 percent of sampled contracts compliant with contractual terms

and conditions.



• 100 percent compliance with applicable laws and regulations.

• 70 percent of mitigation plans implemented to minimise the impact

of risk.

• 100 percent of audit findings resolved within the due date.

• One external audit rating achieved.

The targets that were not achieved included 100 percent achievement of

total targets (40% below the planned target) and non-achievement of two

customer satisfaction index rating.

2.3 Programme 3: Planning

The purpose of this programme is to provide performance information

services that inform management decision-making that lead to the

achievement of the CATHSSETA’s pre-determined strategic objectives.

This programme was made up of the following units, namely:

• Research.

• Strategy and planning.

• Monitoring and reporting.

• Evaluation.

There were eight targets planned during the year under review and all were

achieved. The targets that were achieved included:

• 80 percent of research agenda items.

• Publication of six research items on the entity’s research portal.

• Submission of the sector skills plan (SSP) and annual

performance plan (APP)

• Submission of five strategy performance reports.

• 100 percent of remedial action plan per quarterly report.

• One impact assessment study conducted.



2.4 Programme 4: Skills Development

The purpose of this programme is to facilitate the delivery of the

CATHSSETA core mandate of skills development in the CATHSSETA

sector. This programme was made up of five sub-programmes, namely:

• Quality Assurance and Capacity Building.

• Learning interventions and Grants.

• Special Projects.

• Provincial Operations and Chambers.

The five sub-programmes had a combined total of 34 targets. Of these

targets, 22 were achieved and 12 were not achieved as planned. The targets


• 110 training providers compliant with legislated requirements,

• 888 learners enrolled in learnership programmes (exceeded the

planned target by 288).

• Number of learners completing learnership programmes (exceeded

the planned target of 300 by 399).

• Number of learners entering bursary programmes (exceeded the

planned target of 350 by 148).

• 500 learners entering skills programmes.

• Number of learners completing skills programmes (exceeded the

planned target of 250 by 26).

• 320 learners enrolled in work experience and internship

programmes.

• 100 artisans entering training programmes.

• 800 sectoral small enterprises directly supported.

• 250 unemployed youth from rural areas supported.

• 50 Technical and Vocational Education and Training (TVET) staff

entering training programmes.

• Five CATHSSETA learning programmes licenced to TVET colleges

• Six rural development projects supported.

• Four provincial offices established.

• 30 percent achievement of the provincial business plan.




• Number of qualifications, applications submitted to the Quality

Council for Trades and Occupations (QCTO) (2 below the planned

target 4).

• Number of learners completing bursary programmes (42 leaners

below the planned target of 175).

• Number of learners completing work experience and internship

programmes (134 below the planned target of 260).

• Number of TVET staff completing training programmes (3 below

the planned target of 50).

• Number of TVET staff exposed to industry (50 below the planned

target of 200).

• Number of National Certificate Vocational NC(V) learners placed in

work integrated learning (WIL) (195 below the planned target of

700).

• Number of Nated / N6 learners placed in a WIL programme

(201 below the planned target of 500).

• Number of TVET college staff trained on Organisational

Development, Education, Training and Development Practices

(OD-ETDP) per college (79 below the planned target of 100).

• No TVET programme submitted (planned target was one).

2.5 Financial performance

The CATHSSETA had a total revenue of R316.4 million for 2015/16. The

total revenue was made up of R296.7 million from the skills development

levy income and R8.2 million from the skill development levy (interest and

penalties). The total expenditure at the end of the financial year amounted to

R274.4 million. The total expenditure was made up of R205.9 million for

the employer (mandatory grants) and projects expenses (discretionary

grants), and R68.5 million for administration expenses. Of the

R68.5 million, R19.8 million was for cost of employment, which decreased

from R24 million in 2014/15. Consultancy and service providers’ fees



increased from R4.8 million in 2014/15 to R15.5 million in 2015/16. The

surplus at the end of the year amounted to R41.8 million.

An over-expenditure of R28.2 million and R15.8 million was recorded in

programmes 1: Administration and 2: Governance respectively.

Programmes 3: Planning and 4: Learning interventions’ underspending at

the end of the year amounted to R3.3 million and R72.9 million

respectively.

3. Observations

The Portfolio Committee on Higher Education and Training, having

assessed the Annual Report 2015/16 of the CATHSSETA, made the

following observations:

• The legislation did not compel government departments and public

entities to contribute 1 skills levy to the government related SETAs,

and this had serious financial implications on these SETAs who

were expected to provide skills development programmes to the

public sector.

• The clean audit opinion achieved by the entity in the year under

review was highly commended.

• The inadequate throughput rate in the skills and training programmes

funded by the CATHSSETA was noted as a concern.

• The focus of the CATHSSETA’s skills development projects in

cities as opposed to rural areas was noted as a concern.

• The entity exceeded its 10 percent threshold in administration

expenditure owing to high operational costs for maintaining support

services.

• The delays by the Department in finalising the new SETA landscape

was highlighted as a serious concern as it negatively impacted on the

SETAs to operate optimally, commit to projects, to fill outstanding

vacancies and to deliver on the growing demand for skills

development.



4. Conclusion

The performance of the CATHSSETA had improved from 34 percent in

2013/14 to 80 percent in 2015/16. The entity received a clean audit opinion

for 2015/16. The interventions implemented by the administrator and his

team had managed to strengthen management and governance capacity of

the entity which were dysfunctional. The administrator was able to conclude

all the disciplinary hearing cases within his control, and there were three

outstanding cases that were with the Commission for Conciliation,

Mediation and Arbitration (CCMA). The process of recouping funds from

those implicated in fraud and corruption were ongoing.

Some of the key highlights for the year under review included the payment

of R45 million in mandatory grants and R160 million in discretionary

funding. Funding towards mandatory and discretionary grants supported the

core delivery / skills programmes of the CATHSSETA. The CATHSSETA

experienced challenges, in particular with the completion / success rate at

some of its key skills training programmes. The entity committed to embark

on a monitoring and evaluation exercise to assess the challenge of drop-out

in its funded programmes.

5. Recommendations

The Portfolio Committee on Higher Education and Training having assessed

the Annual Report 2015/16 of the CATHSSETA, recommends that the

Minister of Higher Education and Training consider the following:

• The filling of vacant critical posts should be prioritised to strengthen

the capacity of the entity in fulfilling its mandate effectively;

• The appointment of the new Accounting Authority should be

expedited;

• The entity should adhere to the 10 percent threshold for its

administration expenditure;

• The Department should exercise sufficient oversight role over its

entities, in particular the SETAs to prevent poor governance and

performance;



• The CATHSSETA should distribute the skills development

interventions across all the provinces;

• The Department should expedite the process of reconfiguring the

new SETA landscape; and

• Further engagements should be undertaken to resolve the challenge

of government departments and public entities not paying the

1 percent skills levy for training and development.



EDUCATION AND TRAINING ON THE SECOND QUARTER

PERFORMANCE REPORT OF 2016/17 OF THE DEPARTMENT OF

HIGHER EDUCATION AND TRAINING, DATED 15 FEBRUARY

2017

The Portfolio Committee on Higher Education and Training having

considered the second quarter performance report 2016/17 of the

Department of Higher Education and Training (DHET) on 23 November

2016 reports as follows:

1. Introduction and background

Section 55 (2) of the Constitution of the Republic of South Africa, 1996

stipulates that the National Assembly (NA) must provide for mechanisms

(a) to ensure that all executive organs of state in the national sphere of

government are accountable to it; (b) to maintain oversight of the exercise of

national executive authority, including the implementation of legislation,

and any organ of state.

Consideration of quarterly reports is one of the tools that ensures that organs

of the state are accountable to Parliament. These reports are critical for in-



year monitoring as they provide information on pre-determined objectives,

which are reflected in the strategic and annual performance plans, progress

against objectives and identifying gaps in implementation. This is to ensure

that policies announced by government and authorised by Parliament are

actually delivered.

As part of its in-year monitoring, the Committee convened a meeting with

the Department to consider its second quarter performance report 2016/17.

This report accounts for work undertaken by the committee during

performance assessment of the second quarter 2016/17. The report further

makes recommendations for consideration by the Minister of Higher

Education and Training.

2. Overview and assessment of the performance information on the

predetermined objectives for the second quarter of 2016/17 and

adjusted estimates 2016/17

During the quarter under review, the Department had 12 planned targets

spread across the four core delivery programmes, namely University

Education, Technical and Vocational Education and Training (TVET),

Skills Development and Community Education and Training (CET). The

two support programmes, Administration and Planning, Policy and Strategy

did not have planned targets for the quarter under review. Of the 12 planned

targets, 10 were achieved as planned and two were partially achieved

(83 percent).

2.1. Programme 1: Administration

The purpose of this programme is to provide strategic leadership,

management and support services to the Department. The programme has

six budget sub-programmes, namely:

• Ministry.

• Department Management.

• Corporate Services.

• Office of the Chief Financial Officer.

• Internal Audit.



• Office Accommodation.

During the quarter under review, the programme did not have planned

targets. For 2016/17, there were five annual targets for this programme. As

at 30 September 2016, the progress towards the achievement of the targets

was as follows:

• The approved funded positions filled were at 92.5 percent with a

vacancy rate of 7.45 percent. The Department experienced a

challenge of high volumes of applications received and lack of

capacity in the Recruitment Unit to respond to the demand.

• Of the 20 disciplinary cases reported, four cases (25 percent) were

finalised within 90 days. Unavailability of employees led to the

postponement of other cases.

• The Recruitment Unit had processed appointments within 187 days

against the planned target of 180 days. The high volumes of

applications reviewed and lack of capacity in the Recruitment Unit

to respond to the demand were the reasons for deviation on this

target.

• A draft 2017/18 Information and Communication Technology (ICT)

procurement plan had been completed.

• It took an average 29.4 days against the planned target of 30 days to

settle valid invoices to creditors.

2.2. Programme 2: Planning, Policy and Strategy

The purpose of the programme is to provide strategic direction in the

development, implementation and monitoring of Departmental policies and

Human Resource Development Strategy for South Africa. The programme

has six budget programmes, namely:

• Programme Management: Planning, Policy and Strategy.

• Human Resource Development, Strategic Planning and

Coordination.

• Planning, Information, Monitoring and Evaluation Coordination.



• International Relations.

• Legal and Legislative Services.

• Social Inclusion in Education.

During the quarter under review, the programme did not have planned

targets. For 2016/17, there were nine planned annual targets for this

programme. As at 30 September 2016, the progress towards the

achievement of these targets was as follows:

• Approved National Policy on Career Development Services across

all spheres of Government (due by March 2017). The Career

Development Services across all spheres of Government Policy had

gone through the cluster process and was on track to receive Cabinet

approval for publication.

• Approved Policy for Open Leaning and Distance Education (due by

March 2017). The first draft of the Open Learning and Distance

Education Policy Framework had been developed and consultation

was underway for finalisation.

• Approved Monitoring and Evaluation (M&E) Framework for PSET

system (due by March 2017). The first version of the M&E

Framework for PSET system had been developed. A compendium of

indicators for system monitoring had been developed.

• A Monitoring Report on the International Relations (due by March

2017). An outline of International Relations monitoring report had

been developed, and source documents identified and gathered. The

drafting of the content was in progress.

• Macro Indicator Trend Report on PSET (due by March 2017).

Funding for the Commission on Macro Indicator Trend Report on

PSET had been approved.

• Developing materials for the identified two programmes to be

piloted in 2017/18 (due by March 2017). The tender specifications

for the development of specifications for the Occupational

Qualification: Electrician was developed.

• Develop a report on the implementation of the strategy on open

learning and distance education (due by March 2017). The



information for the report on the implementation of the strategy on

open learning and distance education was being collected.

• Annual report on skills supply and demand published by March

2017. The 2015 report on skills supply and demand was only

finalised in September 2016, and was being updated with the 2016

available information. Annual statistics on PSET report published by

31 March 2017. The process was underway and at an advanced

stage. Inputs for the publication of 2015 Statistics had been provided

and confirmed by branches.

2.3 Programme 3: University Education

The purpose of this programme is to develop and coordinate policy and

regulatory framework for an effective and efficient university education

system. Furthermore, it provides financial support to universities, the

National Student Financial Aid Scheme (NSFAS) and the National Institute

for Higher Education (NIHE). The programme has six budget sub-

programmes, namely:

• Programme Management: University Education.

• University-Academic Planning and Management.

• University-Financial and Information Systems.

• University-Policy and Development.

• Teacher Education.

• University Subsidies.

The programme had undertaken to deliver a total of 29 delivery outputs in

2016/17 financial year. During the quarter under review, there were five

delivery outputs of which all (100 percent) targets were achieved. The

targets that were achieved were as follows:

• A report on the Higher Education HIV/AIDS Programme for the

2015/16 financial year approved by the Director-General by

30 September 2016.



• Teaching and Learning Development Capacity Improvement

Programme (TLDCIP) project plan for Early Childhood

Development teacher education was approved by the DG on

15 September 2016.

• TLDCIP project plan for Primary Teacher Education was approved

by the DG on 27 September 2016.

• TLDCIP project plan for TVET and Community College lecturer

education was approved by the DG on 05 September 2016.

• TLDCIP project plan for special needs teacher education was

approved by the DG on 26 September 2016.

The Branch was tracking progress towards the achievement of delivery

outputs that were due in the subsequent quarters or at the end of the

financial year. There were no challenges in most of the delivery outputs

except for the revised funding framework for Higher Education Institutions

(HEIs) to publish in the Government Gazette by 31 December 2016.

2.4. Programme 4: Vocational and Continuing Education and Training

(VCET)

The purpose of this programme is to plan, develop, evaluate, monitor and

maintain national policy, programmes, assessment practices and systems for

vocational and continuing education and training, including Technical and

Vocational Education and Training (TVET) Colleges and post-literacy adult

education and training. The programme has five budget sub-programmes,

namely:

• Programme Management: Technical and Vocational Education and

Training.

• Technical and Vocation Education and Training System Planning

and Institutional Support.

• Programmes and Qualifications.

• National Examination and Assessment.

• Financial Planning.



The Programme had undertaken to deliver a total of 11 direct deliverable

targets from the second to the fourth quarters. For the quarter under review,

the Programme planned to achieve three delivery output and all three were

achieved as follows:

• Monitoring and Evaluation Report of the TVET Colleges was


• Teaching and Learning Support Plans for TVET Colleges was


• The Student Support Services Plan was approved by the DG on

30 September 2016.

The Branch was tracking progress towards the achievement of delivery

outputs that were due at the end of the financial year. There were no

challenges in most of the delivery outputs except the national admission and

promotion guidelines for the National Certificate Vocational NC(V) which

was under review by Umalusi, and the review of the qualifications policy by

Umalusi. The delays in the finalisation of the NC(V) programme review by

Umalusi may negatively impact on this process.

2.5. Programme 5: Skills Development

The purpose of the programme is to promote and monitor the National

Skills Development Strategy (NSDS III). To develop skills development

policy and regulatory framework for an effective skills development system.

The programme has four budget sub-programme, namely:

• Programme Management: Skills Development.

• SETA Coordination.

• National Skills Development Services.

• Quality Development and Promotion.

For the quarter under review, the programme had three delivery targets and

only one target was achieved, namely an approved Sector Education and

Training (SETA) monitoring report on skills development.



The other two targets that were not achieved included:

Progress on delivery outputs that were due in the subsequent quarters was as

follows:

• The trade test pass rate at INDLELA was below target at 50 percent

against the planned target of 52 percent.

• The average lead time from trade test application received until trade

test conducted at INDLELA was 124 days against the planned target

of 120 days.

• Approval of the Workplace based learning programme regulations

by the Minister was due by 31 December 2016 – the Draft

Regulations were in place and under discussion.

• Approval of the revised National Skills Development Strategy by the

Minister was due by 31 March 2017. Consultation with stakeholders

was being finalised.

• Approval of the SETA landscape by the Minister was due by March

2017. Consultation with stakeholders was being finalised.

• Programme Management: Community Education and Training.

• Community Education and Training Colleges Systems Planning,

Institutional Development and Support.

• Financial Planning.

• Education and Training and Development Support.

2.6. Programme 6: Community Education and Training

The purpose of this programme is to plan, develop, implement, monitor,

maintain and evaluate national policy, programme assessment practices and

systems for community education and training. The programme has four

budget sub-programme, namely:

The Programme had undertaken to deliver a total of seven delivery outputs

for 2016/17 financial year. During the quarter under review, there was one

delivery output due and it was achieved as planned, namely an approved

Monitoring and Evaluation Policy for Community Colleges.



Progress on the other targets due in the subsequent quarters were as follows:

• Regulations for the establishment of the satellite Community

Learning Centres (CLCs) due by 31 December 2016. The draft

regulations had been developed and awaited approval.

• The National Curriculum Policy for Community Colleges due by

31 March 2017. The draft policy had been developed and awaiting

approval.

• Conduct policy for General Education and Training Certificate

(GETC) for adults due by 31 March 2017. The draft had been

developed and awaited approval.

• Annual plan for education, training and development improvement

plan for CET Colleges by 31 March 2017. A framework had been

completed and was been processed for approval.

• An approved CET College infrastructure/facilities maintenance

report due by 31 March 2017. The reports had been consolidated and

being discussed at branch level with a view of developing updates

and recommendations.

• An approved strategy on strategic partnerships was due by 31 March

2017. The Draft Strategy had been developed and was at a

consultation stage internally.

2.7 Financial performance

During the quarter under review, the overall spending rate for the second

quarter was 39.1 percent including Direct Charges. Expenditure in the first

six months of 2016/17 financial year was R40.6 billion or 60.81 percent of

the main appropriation. The high spending trend was mainly due to transfers

made to universities and TVET Colleges. The average spending for normal

operational activities, including Compensation of Employees, was

47.5 percent, and the spending rate on compensation of employees was

47.0 percent. There was an overspending of R10.5 million on compensation

of Examiners and Moderators, which translated to 112.5 percent. The

Department noted that the quarterly overspending on Examiners and



Moderators would not constitute overspending at the end of the financial

year.

2.8 Adjusted Estimates 2016/17

The Department’s original allocation amounted to R66.8 billion and this

allocation included a direct charge against the National Revenue

(R17.6 billion), which comprised the National Skills Levy payable to the

SETAs and the National Skills Fund (NSF). The total allocation for 2016/17

(R66.8 billion) decreased to R64.6 billion in the Adjusted Estimates. This

represented a decrease of R2 billion. The decrease was due to the annual

review by National Treasury on the collection of the Skills Levy during the

financial year. For 2016/17, the collection had been adjusted downwards

based on current collection data.

Funds were shifted internally between Programmes to address specific

operational needs and to provide for shortfalls on the cost of living

adjustments. As a result of the migration of the TVET function to the

Department, approximately 81 percent of the total 2016/17 allocation for the

TVET Colleges was earmarked for Compensation of Employees (CoE) to

provide for the uncertainty of the actual cost. During 2015/16, this

contributed to a saving on CoE, as only 19 percent of the total budget was

allocated for subsidies. The expenditure trend to date reflected that a similar

saving may occur for the 2016/17 financial year. An amount of

R260 million was shifted from CoE to TVET College.

3. Committee observations

The Committee noted that:

3.1 The overall performance of the Department in the quarter under

reviewed showed significant improvement from the previous quarter, and

the Department did not incur irregular expenditure.

3.2 The uncertainty about the future of the SETAs and the reduction in skills

levy collection would have a negative impact in the implementation of the

skills development projects.



3.3 The delay in the filling of vacancies due to inadequate capacity within

the Recruitment Unit of the Department remained a challenge. The filling of

vacant posts was critical to enhance the Department’s capacity to effectively

deliver on its mandate.

3.4 The curriculum review of the TVET sector was critical to improve the

employment prospects of TVET Colleges’ graduates, and to support

industry with requisite skills.

3.5 The Skills Development Act did not compel government

departments/entities to pay levies to the SETAs and further work should be

undertaken to close the gaps in the legislation.

3.6 The below target in trade test pass rate at INDLELA and delay in trade

test conducted were concerning, as the country envisaged to produce 30 000

artisans per annum by 2030.

3.7 The audit outcomes of TVET Colleges for 2015/16 did not show

improvement, and the Department should provide more support to these

institutions to improve their internal control systems.

3.8 The State Information Technology Agency (SITA)’s capacity challenges

continued to delay the issuance of the National Certificate Vocational

NC(V), Report 190/1 and the General Education and Training Certificate

(GETC) certificates. This had a negative impact on the affected candidates

and their opportunities to secure employment.

4. Conclusion

The overall performance of the Department in the quarter under review had

improved from the previous quarter, and the transfer payments and subsidies

were processed as planned in accordance with payment schedules. The

Department continued to closely monitor the performance trends across all

the Programmes to minimise overspending. It was commendable that there

was no irregular, fruitless or wasteful expenditure incurred during the

quarter under review.



The Department continued to experience challenges with the release of the

NC(V)/Report 190/1 certificates owing data errors and the capacity of the

State Information Technology Agency (SITA) to deliver on this function

effectively. The Department undertook to resolve the matter with the SITA.

The capacity related challenges at INDLELA impacted on the Department’s

target of artisan training and development. The trade test pass rate at

INDLELA in the quarter under review was below target and the institute

delayed in conducting trade tests. The Department noted that the

recapitalisation process was underway to improve the performance of the

institute.

5. Recommendations

The Committee, having assessed the second quarter performance report

2016/17 of the Department, recommends that the Minister of Higher

Education and Training consider the following recommendations:

5.1 The filling of the Deputy Director General (DDG) and other critical

posts should be expedited.

5.2 The release of outstanding NC(V) and Report 190/1 and the General

Education and Training Certificate (GETC) certificates should be

prioritised.

5.3 A turn-around strategy should be implemented to support INDLELA to

deliver on its mandate effectively.

5.4 Mechanisms should be put in place to capacitate the financial

management units of the TVET Colleges to improve their internal control

systems. Further interactions between the AGSA and TVET Colleges

should be undertaken to guide them on the AG’s auditing requirements.

5.6 The Department should consider exploring the possibility of having one

Community Education and Training (CET) College conceptualised as a

model, which other CETCs can benchmark on.



5.7 The curriculum review of the TVET sector should be speedily

implemented in line with industry needs. The relevant Quality Councils

(QCs), Umalusi and the Quality Council for Trades and Occupations

(QCTO) should present a comprehensive report to the committee with

timeframes on implementation of the curriculum review.

5.8 Further work should be undertaken to resolve the loopholes in

legislation on payment of skills levies by government departments and

entities.

5.9 The reconfiguration of the new SETA landscape should be expedited to

limit the uncertainty on the future of the SETAs and a detailed report should

be provided to the committee.



EDUCATION AND TRAINING ON THE FOURTH QUARTER

REPORT OF 2015/16 AND FIRST QUARTER REPORT OF 2016/17

OF THE DEPARTMENT OF HIGHER EDUCATION AND

TRAINING, DATED 09 NOVEMBER 2016

The Portfolio Committee on Higher Education and Training having

considered the fourth quarter report of 2015/16 and first quarter report of

2016/17 of the Department of Higher Education and Training (DHET) on

31 August 2016 reports as follows:


Section 55 (2) of the Constitution of the Republic of South Africa, 1996

stipulates that the National Assembly (NA) must provide for mechanisms

(a) to ensure that all executive organs of state in the national sphere of

government are accountable to it; (b) to maintain oversight of the exercise of



national executive authority, including the implementation of legislation,

and any organ of state.

Consideration of quarterly reports is one of the tools that ensures that organs

of the state are accountable to Parliament. These reports are critical for in-

year monitoring as they provide information on pre-determined objectives,

which are reflected in the strategic and annual performance plans, progress

against objectives and identifying gaps in implementation. This is to ensure

that policies announced by government and authorised by Parliament are

actually delivered.

As part of its in-year monitoring, the Committee convened a meeting with

the Department to consider its fourth quarter of the 2015/16 and first quarter

of the 2016/17 non-financial and financial performance reports. This report

accounts for work undertaken by the Committee during performance

assessment for the two quarters. The report further makes recommendations

for consideration by the Minister of Higher Education and Training.

2. Overview and assessment of the performance information on the

predetermined objectives for the fourth quarter of 2015/16 and first

quarter of 2016/17

2.1. Programme 1: Administration

The purpose of this programme is to provide overall management and

administration of the Department. There were no targets planned for this

programme during the fourth quarter of 2015/16. There were also no targets

for this programme for the quarter ending 30 June 2016.

With regard to capping of compensation costs, the Department noted that

the capping impacted on the implementation of its organogram. Other

functions adversely affected included the procurement of suitable regional

offices and employment of subject specialists to support TVET Colleges

and CET sectors. The Department reported that the vacancy rate as at

31 August 2016 was 6.8 percent. Of the 91 positions advertised during the



year, 45 were filled. However, vacancies were created upon the employment

of the internal staff.

The Department further noted that there had been a high attrition rate in

Programme 5: Skills Programme, due to older staff members leaving the

employ of the Department at the Institute for the National Development of

Learnerships, Employment Skills and Labour Assessments (INDLELA).

Programme 5: Skills Programme had a vacancy rate of 29.6 percent,

followed by Programme 1: Administration at 10.4 percent and Programme

4: Technical and Vocational Education and Training at 2.79 percent. The

Department appointed the Deputy Director-General for Programme 2:

Planning, Policy and Strategy on contract basis and the process to fill the

post permanently was underway.

2.2. Programme 2: Planning, Policy and Strategy

This programme was formerly the Human Resource Development, Planning

and Monitoring Coordination, and was renamed Planning, Policy and

Strategy in 2016/17. The purpose of this programme is to provide strategic

direction in the development, implementation and monitoring of the

department policies and Human Resource Development Strategy for South

Africa.

For the quarter ending 31 March 2016, the Department had seven targets,

which three were achieved (43 percent). The targets that were achieved

included the publishing of an Annual Post-School Statistical Report,

conceptualisation of a flexible model of learning delivery and the

development of an implementation strategy for implementation in 2016/17,

the development of a prototype of learning management system for open

learning system together with materials for two programmes identified to be

piloted in 2016/17 and the development of a policy framework on disability.

The other three targets, namely, to develop and gazette a policy and

guidelines on articulation, to publish a policy framework on social inclusion

and to publish an Annual Report on Skills Supply and Demand could not be

achieved within the set timeframe.



With regard to publishing a policy framework on social inclusion, the

Department reported that universities raised concerns regarding the

cumbersome reporting protocols, and requested integration of social

inclusion targets into their annual reporting. Engagements with universities

on the matter were ongoing. The Department provided the revised

timeframes for the three policies, 30 September 2016 for the publication of

the Annual Report on Skills Supply and Demand, 30 September 2016 for

publication of a policy framework on social inclusion and 30 September

2016 to develop and gazette a policy and guidelines on articulation.

For the first quarter of 2016/17 financial year, there were no targets planned

for this programme. However, the Department reported on progress towards

achieving targets for the subsequent quarters, which would be reported on

during the assessment of the second quarter performance report.

2.3. Programme 3: University Education

The purpose of this programme is to develop and coordinate policy and

regulatory frameworks for an effective and efficient university education

system and provide financial support to universities, the National Student

Financial Aid Scheme (NSFAS) and the National Institutes for Higher

Education (NIHE).

For the quarter ending 31 March 2016, the programme had twelve targets

and achieved ten (83 percent. The achieved targets included the Assessment

Report on the effective use of infrastructure grants to 24 universities

approved by the DG, the Assessment Report on the effective use of two

universities earmarked grants submitted to the DG, the Annual Report on

the research outputs of 24 universities published on the Department website,

an annual monitoring report on Public Higher Education Institutions

(PHEIs) compliance with the regulations approved by the DG, an annual

evaluation report on the Staffing South Africa’s Universities Framework

(SSAUF) approved by the DG, institutional governance capacity

development programme review report approved by the DG, a Teaching and



Learning Development Capacity Improvement Programme approved for

implementation by the DG, an Enterprise Architecture for the Central

Applications Service developed and approved, the 2005 to 2008 first-time

entering undergraduate cohort analyses report published on the

Department’s website and a report on the 2015 BRICS Academic forum and

Think Tank partnership approved.

The other two targets that were not achieved as planned by the end March

2016 included the annual report on the achievement of Ministerial

enrolment targets approved by the Minister by March 2016 and the Revised

Higher Education Act promulgated by end March 2016.

There were no targets for this programme for the quarter ending 30 June

2016, and a progress towards achieving the planned targets for the

subsequent quarters was reported.

2.4. Programme 4: Vocational and Continuing Education and Training

(VCET)

The purpose of this programme is to plan, develop, implement, monitor,

maintain and evaluate the national policy, programmes, assessment practices

and systems for TVET.

For the quarter ending 31 March 2016, the programme had four targets and

it achieved three. The targets that were achieved included the development

of governance and policies for the TVET colleges, a monitoring and

evaluation report on Vocational and Continuing Education and Training

(VCET) institutions was produced and the development of a protocol on the

secondment of sector specialist to work in TVET colleges and lecturers

exposed to the work place. The target that was not achieved within the set

timeframe was the development of a macro infrastructure and maintenance

plan for Community Education and Training Colleges (CETCs).

There were no targets for this programme for the quarter ending 30 June

2016 and a progress towards achieving the planned targets for the

subsequent quarters was reported.



2.5. Programme 5: Skills Development

The purpose of this programme is to promote and monitor the national skills

development strategy and to develop a skills development policy and a

regulatory framework for an effective skills development system.

For the quarter ending 31 March 2016, there were 10 planned targets and the

Department achieved six (60 percent). The targets that were achieved

included the approval of a governance charter for SETAs, approval of the

SETAs governance, approval of the reviewed SETA landscape, approval of

a reviewed National Skills Development Strategy (NSDS) and the national

artisan learner trade test pass rate which was 52 percent (2 percent above the

planned target). The targets that were not achieved within the set timeframe

included the occupational team policy recommendations which were not yet

available, a single national artisan development information system

management designed which was not yet available, and the number of new

artisan learners registered annually and new artisans qualified per annum.

For the quarter ending 30 June 2016, there were three targets and the

Department achieved one. The target that was achieved was the approval of

the SETA monitoring report on skills development. The targets that were

not achieved included the decline of 2 percent in the national artisan learner

trade test pass rate at INDLELA (target was 52 percent) and the average

lead time from trade test application until trade test conducted at INDLELA

which was160 days instead of the initial target of 120 days. The Department

had appointed seven Recognition of Prior Learning (RPL) assessors to

facilitate the assessment of artisan through RPL.

2.6. Community Education and Training

The purpose of the programme is to plan, develop, implement, monitor,

maintain and evaluate national policy, programme assessment practices and

systems for community education and training.

There were no targets for this programme for the quarter ending 31 March

2015/16 since it was not yet active. There were also no targets for this

programme for the quarter ending 30 June 2016. However, work was



underway to develop the steering mechanisms, teaching and learning

support and infrastructure / facilities maintenance report for the sector.

2.7. Overview and assessment of financial performance

The overall spending rate at the end of the fourth quarter of 2015/16 was

99.9 percent (including Direct Charges). The spending rate on compensation

of employees was 98.9 percent and 100 percent for Examiners and

Moderators. The limitations on funds for operational expenditure, including

the funding of Examiners and Moderators caused the Department to apply

virements across programmes to ensure that no overspending was incurred.

Due to the uncertainty of the actual cost at the time of the function shift at

the beginning of the 2015/16 financial year, the Department overestimated

compensation costs, as detailed personnel information received from the

previous provincial function was incomplete and inaccurate to inform

credible estimates. Also contributing to the overestimation on compensation

costs was that the performance assessments of the 2014/15 financial year of

all staff in the 50 public TVET Colleges were not received on time, meaning

that pay progressions for the staff that migrated to the Department with the

function shift had not been effected in all applicable cases. The programme

therefore had the remaining 19 percent of the compensation of employees’

budget as projected savings. The final outcome of the 2015/16 financial year

was an unspent amount of R84 million due to the slow filling of vacant

funded posts, as a result of the function shift of the TVET and CET sectors.

The overall spending rate at the end of the first quarter of 2016/17 was

39.1 percent (including Direct Charges). The reasons for the high spending

rate was due to the uneven transfers made to universities and TVET colleges

as well as to the National Student Financial Aid Scheme (NSFAS). The

average spending for normal activities including the compensation of

employees was 22.5 percent. The average spending on goods and services

were normal for this time of the financial year. The spending rate on

compensation of employees was 22.7 percent.



3. Committee observations The Committee, having assessed the fourth quarter report of 2015/16 and

first quarter report of 2016/17 of the Department, made the following

observations:

• The Committee commended the overall performance of the

Department for the two quarters under review.

• The Committee was concerned about the delay in the construction of

the other nine TVET college campuses, and the finalisation of the

procurement processes which had been slow.

• The Committee was concerned about the impact of capping of

compensation costs on the operations of the Department.

• It was noted with concern that most TVET colleges did not have

Wi-Fi for easy access and connectivity to the internet for students.

• The decline in the number of new artisan learners registered

nationally and new artisans qualified per annum was raised as a

concern, given the huge demand for artisan skills to sustain the

economy.

• The Committee noted that some of the targets set by the Department

were not SMART and legislative processes towards achieving them

were also beyond its control.

• It was noted with concern that there were outstanding vacancies that

had not yet been filled, especially the two DDG posts.

• The recent burning of University infrastructure was highlighted as a

serious concern given the high costs involved in repairing damaged

infrastructure. The Committee noted that the destruction of the

already existing infrastructure was not acceptable, and the

Department needs to prioritise the issue of safety and security of

University campuses.

4. Conclusion

For the quarter ending 31 March 2016, the Department achieved

23 (70 percent) of the 33 planned targets. 96 percent of the targets for the

2016/17 financial year were due for the subsequent quarters and there were

very few targets for the quarter ending 30 June 2016.



The Department indicated that the savings from compensation of employees

would be allocated to TVET Colleges as subsidies. The Department

experienced a high attrition rate, especially in Programme 5: Skills

Development as a result of staff leaving INDLELA. The Department had

been very slow in the finalisation of the procurement processes for the

construction of the remaining nine TVET college campuses and this was a

concern for the Committee.

5. Recommendations

The Committee having assessed the fourth quarter performance of 2015/16

and first quarter performance of 2016/16, recommends that the Minister of

Higher Education and Training consider the following:

• The construction of the remaining TVET college campuses should

be fast tracked;

• The roll-out of Wi-Fi to TVET colleges should be expedited to assist

students with greater freedom to access information for learning;

• The Department should expedite the completion of a report on the

financial health of universities in the 2015 academic year, because of

the funding challenges experienced by universities;

• The filling of outstanding funded vacancies should be prioritised;

• The safety and security of universities should be prioritised; and

• The Department should be SMART in the setting of its targets, in

particular, those that are related to the publication of policies and

regulations.





EDUCATION AND TRAINING AND THE SELECT COMMITTEE

ON EDUCATION AND RECREATION ON ITS OVERSIGHT VISIT

TO GAUTENG, DATED 15 FEBRUARY 2017

The Portfolio Committee on Higher Education and Training and Select

Committee on Education and Recreation having conducted a joint oversight

visit to the post-school education and training institutions in Gauteng on

17 – 21 October 2016 reports as follows.

1. Delegation list

Portfolio Committee on Higher Education and Training

Ms C September: Chairperson (ANC), Mr D Kekana (ANC), Ms J Kilian

(ANC), Ms S Mchunu (ANC), Ms M Nkadimeng (ANC), Mr E Siwela

(ANC), Prof B Bozzoli (DA), Mr Y Cassim (DA) and Mr S Mbatha (EFF).

Select Committee on Education and Recreation

Ms L Zwane: Chairperson (ANC), Ms M Moshodi (ANC) and Mr Khawula

(IFP).

1.2 Parliamentary support staff

Mr A Kabingesi: Committee Secretary, Ms M Modiba: Content Adviser, Mr

T Mankayi: Committee Assistant, Mr M L Ben: Committee Assistant and

Mr S Maputi: Parliamentary Communications Officer.


The Committees undertook a joint oversight visit to Gauteng to meet with

the various stakeholders in the post-school education and training sector to

discuss plans on saving the 2016 academic year and strengthening dialogue

to enable both new entrances to the institutions in 2017 and allowing

graduates to be placed into much needed scarce skills in 2017. The



Committee also met with the Council on Higher Education to engage on the

future proposals on university fees. The Committees interacted with the

Council on Higher Education (CHE); Universities South Africa (USAf); the

Quality Council for Trades and Occupations (QCTO); the National Student

Financial Aid Scheme (NSFAS); the Higher Education Parents Dialogue

(HEParD); Business Unity South Africa (BUSA); the South African Union

of Students (SAUS); the National Business Initiative (NBI) and the National

Board of Convocations and Alumni (NBCA).

3. Summary of presentations

3.1 Universities South Africa (USAf)

The presentation was made by Prof A Bawa, Chief Executive Officer (CEO)

and highlighted the following: USAf was funded through subscriptions from

the universities. It represented the voice of the higher education sector,

through engagements in policies developed by the state. USAf also acted as

an advocacy agency to promote the role of universities.

The university sector was facing a crisis, due to the ongoing disruptions of

teaching and learning by protesting students. The university fees had

become very expensive and unaffordable for students, especially those from

poor family backgrounds. This was compounded by the decline in

government subsidies per student over the last 15 years. The university fee

increases had been based on the inflation rate up until 2004. However,

higher education had become expensive and universities had to find ways of

sustaining themselves, in the absence of adequate funding from the state.

Universities were likely to complete the 2016 academic year. However, each

institution had its own dynamics. The main challenge in the historically

disadvantaged institutions (HDIs) was adequate financial aid for the needy

students. In institutions such as the Rhodes University, the University of

Cape Town and the University of Witwatersrand, the student protests were

driven by the need for government to support the “missing middle” students.



USAf was seriously concerned about the violent protests and the destruction

of University property. The damage to the University infrastructure was

close to a billion when adding the previous academic year’s cost of the

student protests. Some universities were finding alternative means to

continue with the academic programme through e-learning. The relationship

between the university management and stakeholders was unpleasant as a

result of the current crisis, and an external mediator would be required to

resolve the impasse.

3.2 Council on Higher Education (CHE)

The presentation was made by Prof T Mosia, Chairperson and highlighted

the following: The key premises in higher education included; investing in

the youth to develop their full potential; need to increase the numbers of

capable and competent graduates; unequal patterns of access to higher

education; legacies of inequality which continued to weigh heavily across

all sectors of society; the existing challenges of access, equity and quality.

The funding of higher education could not be about funding University

students only. There was a need for equitable funding across the post-school

education and training sector and the schooling system. Planning, funding

and growth of the PSET system must give attention to how access, support

and funding would be provided, especially to the poor and the missing

middle across the PSET sector. The PSET spending growth had outpaced

other sectors in the last six years.

The quantum of the need for the PSET sector was vast. The National

Development Plan (NDP) targeted an enrolment of 1.6 million students in

universities by 2030, 216 000 extra beds were currently needed in higher

education, and the number was expected to grow to 400 000 by 2030. The

financial aid system would need to expand dramatically to assist students

entering the Technical and Vocational Education and Training (TVET)

sector.



Consistent underfunding had led many universities into dire financial straits

and this was compounded by the zero percent fee increase in 2016. The

proportion of government funding to University budgets decreased from

49 percent in 2000 to 40 percent, and in some cases 30 percent by 2013. The

financial shortfall was made up by student fees, which increased by

42 percent from 2010 to 2014. The third-stream income almost doubled in

local currency, but remained constant as a percentage of budgets.

In relation to access to higher education, the average annual growth rate in

student enrolments for the entire higher education system for 2007 to 2014

amounted to nearly 4 percent. The total enrolment had increased by over

68 percent to close to one million from 2001 to 2013. The major portion of

this growth had been in black African enrolment, which reached 70 percent

of the total enrolment in 2013. In terms of the Gross Enrolment Ratio (GER)

in 2011, there was a fourfold disparity between the African and Coloured

GER on one hand (14 percent), and the White GER on the other hand

(57 percent). This meant that, when the mature adults in enrolment were

discounted, only about 10 percent of the youth in South Africa’s majority

population groups were entering any form of higher education.

In relation to student success and low throughput, it was reported that the

inefficiency in the higher education system functions was indicated in the

quantum of subsidy that did not lead to the achievement of a qualification

for students. Cohort studies over a number of years indicated that of those

students entering to study for a 3 year bachelor’s degree, less than half

would have achieved that qualification within six years. One in four contact

students (excluding the University of South Africa) failed or dropped out

before their second year of study. As a result, 5 percent of the youth in

South Africa’s majority population groups was succeeding in any form of

higher education. The throughput rate for NSFAS students were very low,

and the number of funded graduates in a position to pay back the debt owed,

had an impact on the replenishment of the amount to be disbursed.



With regard to the cost of tuition versus the full cost of study, the main

reason for the fee increase was not as a result of tuition fees. However, it

was the increase in student support services, accommodation, meals and

books. The cost of higher education had risen exponentially, making it

unaffordable for many in society. The declining funding over time had

placed increasing strain on University finances.

In relation to the consequences of a zero percent fee adjustment in 2017, a

further R5 billion would be diverted from other projects and universities

would collectively lose a further R800 million in revenue in addition to

R1.4 billion lost in 2016. Many universities currently subsidised poor

students in addition to the NSFAS funded students, and would not have

sufficient fee income to continue. The NSFAS would experience a shortfall

of R400 million.

With regard to academic staffing, universities currently had too few

academic staff and the ratio was 1:55 for permanent staff and 1:18 for

combined permanent and temporary staff. The overall staffing population

was skewed towards administrative staffing capacity.

The CHE projects and initiatives included the Proposal for Undergraduate

Curriculum Reform, Vital Stats Annual, 20 year review of Higher

Education, Kagisano 10 Funding, Funding colloquium and a Task Team on

regulation of fees.

The CHE’s advice to the Minister on the University fee adjustments

structure for 2017 was based on three scenarios. Scenario A: an across the

board inflation increase in tuition and registration fees, Scenario B: zero

percent fee increase in tuition and registration fees in 2017 and Scenario C:

across the board CPI +2 percent increase in tuition and registration fees.

Scenario A was a better option to be considered for the 2017 academic year

as universities together were in a stronger position than each negotiating

individual increases. With regard to the way forward, the CHE proposed the

restructuring of the funding of higher education in order to reach the NDP

targets.



3.3 Higher Education Parents Dialogue (HEParD)

Mr I Phenyane, Chairperson led the presentation. The student protests were

accompanied by violence and destruction of University property. HEParD

was concerned with the possible loss of the 2016 academic year, which

would have a negative impact on the learners in the schooling system to

access higher education in 2017. HEParD acknowledged that the ongoing

disruptions in higher education were not the sole responsibility of the DHET

to control, and called for all the stakeholders to collaborate and work

towards finding solutions to the current challenges in higher education.

The ongoing disruptions in higher education were a result of the urgent

demand for free quality higher education. There was no commitment from

government on how free higher education for the poor would be delivered.

Students demanded that universities should remove the police and private

security personnel on campuses since they felt intimidated. Some

universities had resorted to online learning to save the 2016 academic year,

and the concern was that this would affect poor students who did not have

access to the internet outside the University precincts. Student historic debt

needed to be resolved in order to maintain peace and stability in universities.

HEParD urged that there should be a roadmap to deal with police and

private security personnel’s involvement at University campuses. The

challenge of arrested, suspended and expelled students should be resolved

urgently. HEParD further reported that the completion of the 2016 academic

year was critical for students, and they demanded that the preliminary report

of the Presidential Commission be released in November 2016, and that it

should be made public. Students were concerned about the NSFAS loans

and bursaries which left them with debt upon completion of their studies.

HEParD played the role of mediation in the ongoing impasse between

student leadership and University management at universities. Parents raised

concerns about lack of consultation by the universities, and they felt they

had a bigger role to play. They were also concerned about the loss of the



investment they made in their children’s education in case the 2016

academic year was lost. The silence by political parties in the country to

work together in finding solutions to the crisis in higher education was a

serious concern for the parents. Parents wanted to know the implications of

free quality higher education and how it would be effectively implemented.

Parents were concerned about the safety of their children at universities,

given the violence that had accompanied the student protests. Parents were

also concerned about the government’s response in finding an amicable

solution to the ongoing crisis in higher education, and to prevent further

disruptions from recurring.

HEParD recommended that the Means Testing system needed to be

reviewed because it created divisions among students. The ongoing crisis in

higher education was not caused by limited access only. However, the

graduation and throughput rate, especially of black students needed to be

considered. The escalation of violence was worsened by the deployment of

private security personnel, which was seen by students as disrupting their

peaceful protests. There was a need to educate parents about the university

life and the ongoing crisis in university campuses.

Some student movements did not want the 2016 academic year to be

completed, while management was committed to saving the academic

programme. The split among the University stakeholders about the

academic year was a challenge. The parents called on the Speaker of the

National Assembly to convene a national parents meeting at a stadium to

engage with them on the current state of the higher education sector and to

find sustainable solutions to the crisis.

3.4 Business Unity South Africa (BUSA)

The presentation was made by Ms K Kweyama, CEO and highlighted the

following: BUSA had been engaging extensively with the relevant

stakeholders to intervene in the ongoing crisis in higher education. BUSA



noted that members of the business community were serving on university

councils and had in their individual capacity and collectively engaged in

various processes to ensure completion of the academic programme.

Through the Youth Employment Accord, Business committed to creating

500 000 job opportunities for the youth. In 2013, BUSA made a submission

to comment on the Green Paper for Post-School Education and Training and

cautioned on the funding implications of the Paper. BUSA noted that

stakeholders needed to work together to find solutions to the challenges

within the higher education sector. BUSA supported the government’s

vision of growing the TVET sector to be a viable alternative path to skills

production.

BUSA supported the NSFAS turn-around strategy and it supported the

interventions by its Chairperson. Business was investing in the post-school

education and training sector through the skills levies, which amounted to

R15 billion, research funds and funding for infrastructure development.

Business was concerned about the inefficiencies within the SETAs system.

BUSA did not support an increase in the skills development levies since it

was not a viable solution. BUSA was an active participant in the skills

development sector. The impact on spending in education needed to be

reviewed. The employment tax initiative had worked well for business since

it created more jobs for the economy. The introduction of the SETA Grant

Regulations had impacted negatively impact on the training of employees in

business, and BUSA took the Minister to court to revise the regulations.

Business supported the completion of the 2016 academic year and it

supported the call for free higher education for the poor. However, the

country was not in a position to afford free quality higher education owing

to slow economic growth, and the NSFAS loans and bursaries were a viable

solution in the interim. BUSA was opposed to the violent protests and

destruction to university infrastructure.



3.5 South African Union of Students (SAUS)

The presentation was led by Mr A Mjajubana, President and highlighted the

following: The ongoing disruptions in higher education should have been

prevented by government, since students demanded the provision of free

higher education for a long time. The President announced a zero percent

fee increment for 2016 and established a Presidential Commission of

inquiry into the funding of higher education based on the engagement held

with stakeholders at the end of 2015. The Commission was due to report in

October 2016. However, the terms of reference of the Commission were

amended to extend the period of the Commission and to submit the report in

June 2017.

SAUS agreed with the DHET’s plan to ensure that poor students were not

affected by fee increment. The protests by students were a result of the lack

of a clear commitment by government to implement free higher education.

SAUS did not want students to be excluded based on financial constraints,

and those in the system should be allowed access to their academic records

and complete their academic programmes.

The Presidential Commission should develop modalities on how free higher

education would be implemented. SAUS was concerned with the time-

frame for the finalisation of the report on funding free higher education.

Free higher education was not the responsibility of the Department. The

private sector should play a meaningful role in contributing to free higher

education.

Students were concerned about the arrest of their counterparts and the

presence of police and private security personnel at University campuses.

SAUS was concerned about the legitimization of unelected structures that

were also not provided for in the legislation and the University statutes, and

also the accepted memorandums from these structures. The SRCs were the

legitimate structures that represented students at universities. SAUS did not

condone arson and the criminal acts taking place at institutions.



SAUS noted that universities should not rush to seek court interdicts when

confronted by student protests. However, there was a need for stakeholders

to work together in finding an amicable solution to the challenges facing

higher education. SAUS supported the completion of the 2016 academic

year. However, the continuous victimisation of students at universities

worsened the crisis.

SAUS recommended that: the arrested student leaders be released; NSFAS

should be converted into a grant from the 2017 academic year and the

missing middle students should be catered for in terms of cascading loans

and grants; the removal of police in University campuses should be

prioritised as universities were places of learning; the victimisation of

students should be stopped; students engaged in the burning of the

University infrastructure should face the full might of the law; the Vice-

Chancellors in partnership with students should find amicable solutions on

their impasse; the private sector should be able to take care of the student

historic debt, especially the missing middle; students from rich families

should pay for their full cost of study and government and the private sector

should pronounce on the call for free higher education soon.

3.6 National Business Initiative (NBI)

The NBI was of the view that the focus of government and other role-

players in the education sector should not be limited to universities, but it

should be inclusive of the entire PSET sector. There was a risk that the

TVET sector students might also revolt given that the focus was only on

universities. The demands of students at colleges were similar to the

students in the University sector. The perception of TVET Colleges as

inferior to universities remained a challenge. The NBI played a critical role

in the development of policies. Business wanted the system to be fixed first

before further investment could be made.

There was a need for a strengthened dialogue among all stakeholders to find

solutions to the challenges within the higher education sector. There was a

need for further engagements with students to clarify the role of business in



contributing to higher education. The NBI supported the resumption of the

academic programme to save the 2016 academic year.

3.7 National Board of Convocations and Alumni (NBCA)

The presentation was made by Mr S Zondi, Chairperson and highlighted the

following: The NBCA held its first Convocation of Alumni on

05 September 2016 at the University of KwaZulu-Natal (UKZN). The

NBCA was a representative body for all the Convocations and Alumni of

universities. Unlike the SRCs, Convocations and Alumni were not properly

organised and constituted in terms of higher education legislation. The

stakeholders coordinated themselves to discuss the ongoing crisis in higher

education. The NBCA formed an Advisory Committee inclusive of senior

academics who would advise the NBCA on higher education matters. The

composition of the organisation was aimed to be more inclusive in terms of

gender and race. However, all the Convocations in higher education were

headed by males and equity in terms of gender representation was essential.

The NBCA reported that the best universities around the world had the best

Alumnis and Convocations. In the former white institutions, Convocations

and Alumnis had considerable powers, especially in the recruitment and

appointment of senior managers. In terms of funding and programme, there

were gaps between the Convocations and Alumnis from the previously

disadvantaged institutions, and the former white institutions. The formation

of the NBCA was to coordinate the programmes of all the Convocations and

Alumnis.

The NBCA aimed at drafting its constitution so that it could be properly

structured to operate like USAf. The long term vision of the NBCA was to

have sufficient capacity to produce research, influence decision-making,

present credible papers and have the capacity to provide leadership and

direction in matters of critical discussion. The vision of the organisation was

to have a board inclusive of all the critical role players in the higher

education terrain.



The position of the board was that teaching and learning should continue at

universities, and the violence and destruction of property should be strongly

condemned. The police should exercise maximum restraints when dealing

with students. The Convocation and Alumnis resolved to play an active role

in mediation, since most of its representatives were former student leaders.

The NBCA’s position on the call for free higher education was that it was

not an event, and it could not be implemented immediately. In essence, the

due consultative process should be followed. The NBCA agreed with the

proposal for an increase in corporate tax to assist with the funding shortfall

in the higher education sector.

3.8 University Vice-Chancellors

The presentation was made by Prof A Habib, Vice-Chancellor of the Wits

University and Chairperson of USAf. The presentation highlighted the

following: During the week of the 10 – 14 October 2016, 17 of the

26 universities were shut down, nine were functioning without disruptions,

and the other six experienced student protests. The national demand of

students was free education now, and it was beyond universities to deliver

the demand. Students demanded for the shut down of the academic year so

that universities could show solidarity with their demands.

The student protests at Wits erupted after the announcement by the Minister

of Higher Education and Training on the University fee adjustments for

2017. The students demanded for the shut down of the 2016 academic

programme until their demands were met. The university undertook a poll,

inclusive of the university staff and students. The overwhelming majority of

the University population wanted the resumption of the 2016 academic

programme.

The University General Assembly called by the students did not assist in

resolving the impasse between management and students at Wits. However,

management resolved that the academic programme should resume. The



academic programme resumed, although there had been continuous

disruptions and attempted arson on a daily basis. Management reported that

the withdrawal of police would not be in the best interest of the university,

although they were concerned about the shooting of students. The

operational command of the police was vested in the Police Generals, and

management did not have control of how police used their authority.

There was a proposal for a multi-stakeholders forum in December 2016 and

January 2017, to map the way forward for higher education to prevent

student protests from recurring. The possible loss of the 2016 academic year

could have ripple effects on the economy and the society at large. The future

of this country laid in the decision to be taken by the relevant stakeholders

in higher education urgently. The government should have acted promptly

in responding to the student demands to avoid the current crisis in higher

education. The continuing protests were eroding donor confidence in the

South African university sector, and this would impact negatively on the

third stream funding.

4. Observations

The Committees, having interacted with the various stakeholders, made the

following key observations:

• The decline in the university subsidies per student remained a

serious challenge for the entire higher education sector;

• It was concerning that the statement issued by the Minister on the

University fee framework for the 2017 academic year seemed not be

understood by the student population;

• The fees must fall student protests had been hijacked by external

forces who wanted to destabilise the country and halt the academic

programme;

• Stability in the university sector was critical to sustain the academic

programme and produce a capable and skilled workforce to support

an inclusive growth path;



• It was noted that small groups of students were disrupting the

academic programme, while the majority of the students wanted to

resume with their academic programme;

• It was critical to ensure that young people were not denied access to

higher education on the basis of financial need;

• The role of the police during the student protests had not been

effective to maintain law and order;

• The burning of the University infrastructure was unacceptable and

students should engage with the University management in a

peaceful manner. The ongoing violence and destruction to

University infrastructure was not a viable means to achieve the

objective of free higher education;

• The high drop-out rate and poor throughput of students in higher

education remained a serious concern;

• Inadequate funding for the higher education sector negatively

impacted on the ability of the sector to enroll more students from

poor family backgrounds. The higher education sector would not be

able to achieve the NDP targets owing to slow economic growth;

• It was concerning that the higher education price index (HEPI) was

above the consumer price index (CPI) given the insufficient funding

for higher education at present;

• The ongoing disruptions in higher education were not conducive to

teaching and learning and would also impact negatively on the

delivery of quality higher education;

• Inadequate student support programmes and interventions offered by

some universities did not enable students to succeed and complete

their qualifications in regulated time;

• The growth of the higher education system over the years had not

been matched by requisite funding to adequately support the

expansion of the system;

• Free quality higher education needed sufficient funding to be fully

implemented and the economic situation in the country could not

support this;



• Students needed to be properly informed about how the government

plans to respond to their demands for free higher education, and the

violence, damage to University property and looting should be

prevented;

• The involvement of the police and the private security personnel in

university campuses needed to be reviewed;

• The call for free higher education was legitimate. However, the

economic realities of the country should be considered since free

higher education needed sufficient funding;

• The deligitimitisation of the SRCs was a serious challenge and that

needed to be resolved; and

• Some of the demands made by students were beyond the reach of

University management.

5. Summary

The joint oversight visit of the Committees was at aimed interacting with

the various key role players in the higher education sector on the ongoing

disruptions in universities and how to save the 2016 academic year. The

stakeholders were united in condemning the violence and destruction of the

University property, and they collectively called for the resumption of the

teaching and learning to prevent the possible ripple effects that may be

caused by the loss of the 2016 academic year. The stakeholders supported

the call for free quality higher education for the poor. However, they agreed

that this could not be implemented immediately given the insufficient

funding in higher education and the regressing economy.

The oversight visit also offered the Committees an opportunity to assess the

Annual Report 2015/16 of the Quality Council for Trades and Occupations

(QCTO) and the National Student Financial Aid Scheme (NSFAS). These

entities were commended for their improved performance for the 2015/16

financial year. However, the recurring findings raised by the Auditor-

General South Africa (AGSA) towards the NSFAS were noted with

concern. It was also commendable that there were no eligible NSFAS

students that were turned away by universities in 2016.



The Committees undertook to further engage with the relevant stakeholders

in higher education towards finding a lasting solution to the ongoing crisis

in higher education. The Committees also agreed to report back to

Parliament on all the key critical issues raised by the stakeholders so that the

Executive could respond.

6. Recommendations

The Portfolio on Higher Education and Training and the Select Committee

on Education and Recreation having conducted an oversight visit to

Gauteng, recommends that the Minister of Higher Education and Training

consider the following:

6.1 Saving the 2016 academic programme

• The resumption of teaching and learning in universities should be

prioritised to prevent the possible loss of the 2016 academic year and

the ripple effects it would have on the economy and society in

general.

6.2 Safety and security at universities

• The police should exercise maximum restraint and operate within the

parameters of the law when dealing with student protests;

• A meeting with the security cluster should be convened to address

the operations of the public order policing at universities; and

• The South African Police Service (SAPS) should provide training to

police on demobilizing protesters without firing rubber bullets.

6.3 Continuation of dialogue

• There should be a mediation process to rebuild the broken trust

between the university management and student leadership;

• Universities should consult with parents on the crisis in the sector;

• Communication between the university management and student

leadership should be opened in order to engage on student

grievances, and there should be timeous response by management;



• Further violence and destruction to University properties should be

prevented;

• University management and the relevant stakeholders should work

collectively on finding long lasting solutions on institutional matters

to avert protracted protests; and

• Members of Parliament and politicians who publicly call for the

shutdown of universities should he held accountable for their

statements.



EDUCATION AND TRAINING ON ITS OVERSIGHT VISIT TO

THE POST-SCHOOL EDUCATION AND TRAINING INSTITU-

TIONS IN GAUTENG, DATED 15 FEBRUARY 2017

The Portfolio Committee having conducted an oversight visit to the post-

school education and training institutions in Gauteng on 19 – 23 September

2016 reports as follows.

1. Delegation list

Portfolio Committee on Higher Education and Training

Ms C September: Chairperson (ANC), Mr D Kekana (ANC), Ms S Mchunu

(ANC), Ms M Nkadimeng (ANC), Mr E Siwela (ANC), Prof B Bozzoli

(DA), Mr Y Cassim (DA) and Prof N Khubisa (NFP).



1.2 Parliamentary support staff

Mr A Kabingesi: Committee Secretary, Ms M Modiba: Content Adviser,

and Mr M L Ben: Committee Assistant and Mr S Maputi: Parliamentary

Communications Officer.

2. Introduction

The Committee undertook an oversight visit to the following institutions,

namely: Eskom Academy of Learning; Institute for the Development of

Learnerships Employment Skills and Labour Assessments (INDLELA);

Transport Education and Training Authority (TETA)/PUTCO Bus

Company; Education Training and Development Practices SETA/Edutel,

South West Gauteng Technical and Vocational Education and Training

(TVET) College; PQ Vundla and Setlakalane Molapo Community Learning

Centres and the Public Service SETA. This report provides a brief summary

of the presentations made by the institutions, observations and

recommendations made by members.

3. Background

The oversight visit formed part of the Committee’s plan to enhance

Parliament’s oversight and accountability over the work of the Executive to

ensure implementation of the objectives of the Medium Term Strategic

Framework (2014 – 2019). The National Development Plan (NDP) 2030 is

the most important strategy of Government aiming to eliminate poverty and

reduce inequality by 2030. The Plan commits the Department of Higher

Education and Training through its entities to produce 30 000 artisans per

annum by 2030. The National Skills Development Strategy (NSDS) III

clearly articulates that the workplace should be an integral part of all

vocational programmes. The Strategy commits all the role players to

establish effective partnership between education and training systems and

employers to provide for workplace training that would ensure that skills

have real labour market relevance, and that young people gain an early

appreciation of and exposure to the world of work.



The 2014 – 2019 Medium-Term Strategic Framework (MTSF) proposes a

target of 140 000 work-based training and experience opportunities for

students as well as an increased partnership between the SETAs and

employers for placements by 2019. The National Skills Fund (NSF) and the

Sector Education and Training (SETAs) have disbursed a lot of mandatory

and discretionary funds towards supporting the skills development

interventions, in terms of funding skills training, skills infrastructure,

curriculum development, student workplace placements, lecturer

development, etc.

During its Mid-Term Review Workshop, the Committee resolved to conduct

an oversight to the National Skills Fund (NSF) and the SETA’s funded

skills development interventions. The Committee had always wanted to

conduct an oversight visit to the skills development interventions supported

by these entities in reducing the scourge of critical skills shortage in the

country. It was against this background that the Committee embarked on an

oversight visit to the post-school education and training (PSET) institutions

which played a critical role in achieving the NDP targets.

The objectives of the oversight visit were as follows:

• assess whether the funded projects are making an impact,

particularly in the lives of young unemployed people;

• assess whether the training facilities are optimally used for training;

• interact with students on their experiences with work-integrated

learning (WIL) and learnership programmes;

• interact with the employers on their experiences in accessing

funding for work-integrated learning and employability of students

upon completing their learning;

• assess transformation in the skills development sector;

• assess the implementation of Recognition of Prior Learning (RPL)

to redress the past injustices on access to education and training; and

• Engage with the Technical and Vocational Education and Training

(TVET) and Community Education and Training (CET) Colleges on



their governance and management, policies, funding and their

programme offerings.

4. Summary of presentations

4.1 National Skills Fund and Eskom Artisan Training Partnership

4.1.1 Eskom Academy of Learning

The meeting was held at the Eskom Academy of Learning in Midrand. The

presentation was made by Ms S Mamorare, Chief Learning Officer and

highlighted the following. The Eskom Strategic Workforce Plan indicated

that Eskom required six percent of its workforce to be learners, therefore the

Learner Pipeline had been maintained at a robust level that was more than

adequate to meet the future core, critical and scarce skills demands. Eskom

had various levers for skills development which included the schools

programme, bursary programme, learnerships and internships, apprentice-

ships and partnerships with institutions of higher learning.

Internal Employee Development continued to be informed by Eskom’s

Strategic Workforce Plan. External skills development initiatives continued

to be supported, though the number of beneficiaries depended on the

availability of funding from the Corporate Social Investment (CSI) and the

Supplier Development and Localization (SDL) initiatives.

The National Skills Fund (NSF) had allocated R174 million skills grant to

Eskom to recruit and train 1 250 learner artisans (actual 1 370) over three

years. This was in line with the National Artisan Funding model of

R139 000 per learner. An amount of R1.288 billion was spent on training

and development in 2015/16, which represented 4.39 percent of the gross

manpower costs as training investment against a target of five percent. The

co-funding models were used to fund these learners, with the primary

Eskom SETA being the Energy and Water SETA that funded Eskom

through mandatory skills grants, and also facilitated additional discretionary

skills grants for strategic skills development projects. The funding shortfall

over the three year period to train artisans was R397 million.



The Artisan, Operating & Maintenance Centre of Excellence (AOM COE)

informed by the business needs would train, develop and declare competent

Artisans and Technicians across the learning value chain to a level of

competence that would enhance, and sustain individual and organisational

performance. The AOM COE was nationally accredited by the Energy and

Water SETA, Manufacturing Engineering and Other Related Services

SETA, Education Training and Development Practices SETA, Southern

African Institute of Welding (SAIW) and the International Institute of

Welding (IIW). This made sure that the facility and all other learning

materials were in compliance. The facility was also accredited by the South

African Bureau of Standards (SABS). The academic and leadership team

participated actively in national and international initiatives that were

relevant for continuous improvement.

The AOM COE included training workshops such as the Welding and

Fabrication, Electrical, Measurement Control & Instrumentation,

Maintenance, Generic Power Plant (GPP) Simulator and Administration

Support Office.

4.1.2 National Skills Fund

The presentation was made by Mr M Macikama: Chief Executive Officer

and highlighted the following. The funding of the NSF to train learners to

acquire scarce and critical skills was related to priority occupations that

were being required for the implementation of key strategic initiative such

the Strategic Integrated Projects (SIPs), Oceans Economy Operation

Phakisa, Industrial Policy Action Plan (IPAP) and the New Growth Path

(NGP). The State Owned Companies (SOCs) had traditionally been a

significant source of artisan training and development in South Africa,

beyond their internal and skills needs. Since 2012, the NSF had made a

significant investment in artisan development through the SOCs.

The NSF allocated R296 million to Transnet, R173 million to Eskom,

R23 million to the South African Airways (SAA), R58 million to Denel,

R119 million to the Passenger Railway Association of South Africa



(PRASA), R1.2 million to the South African Express, R25 million to the

South African Nuclear Energy Corporation (NECSA) for training and

development of artisans and R200 million to the Department of Trade and

Industry (DTI). The total value of the NSF’s funding towards artisan

development initiatives since 2012 amounted to R899 million targeting

5 329 learners.

The funding of infrastructure development to respond to scarce and critical

skills included R113 million towards expanding the Veterinary Science

facilities at the University Pretoria (UP), R311 million towards expanding

the Faculty of Health Sciences at the University of Pretoria, R211 million

towards expanding the work-integrated engineering facilities at the

University of Johannesburg (UJ) and R105 million towards the South

African Renewable Energy Training Centre (SARETEC) at the Cape

Peninsula University of Technology (CPUT).

The NSF allocated R1.3 billion to the National Student Financial Aid

Scheme (NSFAS) in 2015/16 to assist 16 143 undergraduate students

enrolled in scarce and critical skills programmes, R198 million in 2015/16

to the National Research Foundation (NRF) to assist 1 893 postgraduate

students with bursaries and R158 million towards the South African

Institute of Chartered Accountants (SAICA) Thuthuka Initiative. The NSF

allocated R453 million towards Technical and Vocational Education and

Training (TVET) Colleges to assist 14 835 learners in 2015/16 and

R300 million towards the establishment of the South African International

Maritime Institute (SAIMI) and the roll out of an extensive National

Cadetship Programme on maritime occupations.

4.1.3 Artisan learners

The artisan learners noted that they were the fourth group to have joined the

Welders Development Programme since its inception. The duration of the

programme was three years and the learners would qualify with dual

qualifications recognised by the South African Institute of Welders (SAIW)



and International Institute of Welding (IIW). The qualifications were

recognised in 84 countries and the graduates could further their education in

the country or abroad. During training, learners were exposed to the real

work environment. Learners noted that they would want to open their own

businesses and training centres in future. They proposed that the Academy

should also train them in project management and entrepreneurial skills.

The learners thanked the NSF and Eskom for providing them with

opportunities to train as apprentices as well as affording women with

opportunities to train in trades that were previously dominated by males.

Women were also found to be better welders because their eye-hand

coordination and concentration was higher than their male counterparts.

This initiative would minimise the importing of foreign skilled people into

the country.

4.1.4 Site visits to Eskom Learning Academy Training Workshops

The Committee visited the Artisan, Operating and Maintenance Welding

School of Excellence. The School offered the Eskom Professional Welders

Development Programme to young apprentices from all over the country.

The programme was offered in partnership with the Southern African

Institute of Welding (SAIW) and the International Institute of Welding

(IIW) to produce internationally recognised professional welders. The

International Welder programme was aligned with the National

Qualification Framework (NQF) Level 4 qualifications. The minimum

requirement for learners to be admitted into the programme was a Matric

certificate with Mathematics and Physical Science as major subjects. The

apprenticeship training was offered over a period of three years.

The Committee visited the Generic Power Plant (GPP) Simulator, which

offered training to engineers and Technicians to manage the grid on

Eskom’s power stations. The minimum requirement for learners to be

admitted in the training program was the National Qualification Framework

(NQF) Level 6 qualification with previous work experience in a power

station. The training programme was offered over a period of three years for



Unit Controllers. The simulator used the latest software for the training

programme, at the cost of R15 million.

The Committee also visited the Artisan Operating and Maintenance Centre

of Excellence Test Centre, Electrical, Filing and Lighting workshops. The

apprentices who interacted with members indicated that the training

programmes offered by the academy were a life changing opportunity for

them, since most of them came from poor family backgrounds. The

academy offered the apprentices with free tuition, free accommodation and

stipends while they were being trained. The opportunities for the apprentices

to be absorbed by Eskom upon completion of the programme were very

high. Eskom indicated that it offered the apprentices with internship to

enhance their skills and absorb them when vacancies opened up. The

academy had a very low drop-out rate and the apprentices were offered with

a second chance if they failed the training programme.

4.2 INDLELA

The presentation was made by Mr D Mabusela, Chief Director and

highlighted the following. INDLELA was committed to the production of

competent and qualified artisans in line with the NDP target of producing

30 000 artisans per annum by 2030. From 2012/13 and 2013/14, there was a

sharp increase in the number of artisans found competent which, were

15 000 and 18 000 per annum respectively. However, this was followed up

by a sharp decrease on this number in 2014/15 to 14 000 artisans found

competent. INDLELA undertook to research the causes of the sharp decline

in the number of artisans produced in 2014/15. The number of artisans

found competent in 2015/16 was 16 000 whereas 19 000 were certified. In

the 2016/17 first quarter, 2 595 candidates were found competent, whereas

4 749 were certified.

Two gap closure workshops had been established for Welders and

Boilermakers for Artisan Recognition of Prior Learning (ARPL). The

criteria guidelines, which would provide a national criteria for ARPL had



been developed. The ARPL candidate funding model for training still

needed special attention and its establishment was expected by June 2017.

An initial Trade Test Pass Improvement Strategy addressing the challenges

at INDLELA was published and distributed for public comments in 2015.

The comments received largely pointed to the restricted scope of the

strategy and its lack of expression on broader policy issues, linking artisan

development to socio-economic issues in the country. The scope of the

strategy was extended and renamed the National Artisan Development

Strategy. A national public engagement campaign was being undertaken to

consult various stakeholders in the sector.

The main challenges at INDLELA included the infrastructure renovation

and expansion, workshop machinery and equipment modernization,

expansion of security personnel, limited trade testing, few assessors and

workshops for high demand trades, and high number of assessors and

workshops for low demand trades, ageing assessors in low demand trade

and insufficient budget allocated for ARPL.

4.2.1 Site visit to the INDLELA trade test workshops

The Committee conducted a site visit to the Electrical, Boiler-Maker, Diesel

Mechanic and Welding workshops. INDLELA offered a trade test to artisan

learners who have successfully completed the occupational knowledge,

practical and workplace learning and through recognition of prior learning

(RPL). INDLELA was the only public accredited trade test centre in the

country and its history dated back to over 60 years.

The Diesel Mechanic trade was a very popular among candidates that were

assessed at INDLELA. Candidates were assessed on a 4 ton truck engine to

conduct diagnosis, maintenance and testing. The equipment used to assess

candidates in some of the workshops was outdated, and it had to be

upgraded, since the industry utilised modernised equipment.



4.3 Transport Education and Training Authority (TETA) and PUTCO

Bus Company Artisan Training Partnership

4.3.1 Transport Education and Training Authority (TETA)

The meeting took place at PUTCO Larimar Training Academy in Sandton.

The presentation was made by Ms M Anno-Frempong: CEO and

highlighted the following: TETA’s Strategic Framework was drawn from

the Sector Skills Plan (SSP) and the Strategic Framework contained the

transport sector skills priorities. The transport sector employed a total

workforce of 727 528 employees with the major employer being the taxi

industry. Budgetary constraints limited the TETA’s ability to meet the full

industry skills demands, and other scarce and critical skills were being

addressed by stakeholders through their own mandatory grant funding.

Internship and work-place exposure had been on the decrease because of

lack of interest from the industry to place learners.

TETA allocated R225 million towards Apprenticeships, R276 million

towards Learnerships, R115 million towards Internships, R41 million

towards Workplace Experience, R87 million towards the Skills Programmes

and R22 million towards the Small, Medium and Micro-sized Enterprises

(SMMEs). The total contribution of TETA towards skills programme

amounted to R1 billion. The apprenticeship funding was concentrated in

major trading centres with facilities and where the majority of stakeholders

preferred to train.

TETA had partnered with TVET Colleges for capacitation of lecturers as

Assessors and Moderators on transport related qualifications, supported the

Ocean’s Economy Operation Phakisa through funding of apprenticeship

training and adopted several rural-based and disadvantaged schools to

encourage learners to take up post-school studies that addressed scarce and

critical skills in the transport sector.

4.3.2 PUTCO Larimar Training Academy

The presentation was made by Ms L Pather, Skills Development Manager

and highlighted the following: The Larimar Group and PUTCO Limited



were committed to the development of their people as well as new entrants

into the world of work. The company had a sufficiently resourced Training

Academy and Selection Centre with 28 full time employees dedicated to

these functions. The Training Academy was accredited by the TETA for

driver training, the Media Information and Communication Technology

Sector Education and Training Authority (MICT SETA) and Manufacturing

Engineering and Other Related Services Sector Education and Training

Authority (MERSETA) for technical training. The Academy offered a

National Certificate in Professional Driving Learnership programme,

apprenticeship programme towards artisan Diesel Mechanic and Auto-

Electrician qualifications. The company also offered internships and work-

integrated learning placements for TVET Colleges and University students.

All the training courses were conducted at the Training Academy, theory

and practical training were integrated to provide a complete intervention to

learners. The annual apprenticeship intake was 60. External service

providers were used to train on specific areas, such as Health and Safety,

legislation, as well as supervisory and management training to junior,

middle and senior managers. The total training budget for the 2016/17

financial year was R15 million.

The PUTCO Bus Company employed 3 500 employees, and 96 percent of

them were Black. The company transported approximately 80 million

passengers per year / 320 000 passengers per day. The fleet collectively

travelled 100 million kilometres per year. 1 768 employees were trained

during July 2015 to April 2016 against the target of 1 669. The

apprenticeship programme for Diesel Mechanics and Auto Electricians was

conducted over a period of three years. There were 106 apprentices in

training as at July 2016 between the ages 21 – 33 years.

The company experienced challenges with regard to under-representation of

woman (drivers and artisans), ageing workforce, white dominated senior

management, high concentration of women in auto-electrician trade because

there is no heavy lifting and reliance on TETA funding for training.



4.3.3 Learners

The Committee interacted with learners who joined the company for work-

integrated learning, interns and apprentices and those who had completed

their training. One of the beneficiaries noted that she was qualified with a

National Diploma in Transportation and through the work-integrated

learning opportunity within the administration unit of the company, she

acquired experience in dealing with traffic fines, dispatching of drivers and

general operations within the company. Another learner joined the company

as an intern in the Scheduling Department to monitor the buses on the roads,

and she got employed by the company as a clerk. There were learners who

were training as artisans in Auto Electrician, Diesel Mechanics and those

who were on a Professional Driving Learnership. TETA had also funded

one learner to study towards Maritime Transport. The company afforded

women with opportunities to train as artisans. The company had almost

95 percent absorption rate of graduates from its training programmes.

4.3.4 Site visit to the PUTCO Bus Company Workshop

The Committee visited the PUTCO Bus Workshop in Wynberg, which

offered training for the Diesel Mechanics and Auto Electricians apprentices.

The workshop had the capacity to accommodate 80 buses. The Diesel

Mechanic apprenticeship programme offered the apprentices with hands-on

training and skills to diagnose and repair bus engines. The duration of the

apprenticeship was three years, and the apprentices were offered with

employment or they could apply elsewhere.

The Auto-Electrician apprenticeship programme offered the apprentices

with training on the electrical system of the buses. This included the training

on maintenance of all electrical components in the bus and to conduct

diagnostic tests. The minimum requirements for learners to be admitted to

the apprenticeship was a Report 191 / Nated (N6) certificate in Electrical or

Mechanical Engineering. The learners reported that they have not received

the tool boxes they were promised by PUTCO Bus Company.



4.4 ETDP SETA and Edutel Youth Development Learnership

Partnership

4.4.1 ETDP SETA

The meeting took place at Edutel in Roodepoort. The presentation was made

by Ms N Nxesi: CEO and highlighted the following. The ETDP SETA was

responsible for skills development in the education, training and

development practices sector. The key programmes for youth development

offered by the ETDP SETA included bursaries, internships, learnerships,

career development officers, matric second chance programme, cooperatives

and career guidance booklets for Grade 9 – 12 learners. ETDP SETA funded

six Research Chairs in the country, with two of them being in Gauteng for

Labour Market Information at the University of Pretoria and Empirical

Research on TVET College Lecturer Development at Wits University.

ETDP SETA had offered 361 internships and 41 Career Development

Practitioners since 2015 to date. 41 Career Development Officers (CDOs)

had been placed at various TVET Colleges to date and the programme was

very successful since it led to employment. The achievements of the ETDP

SETA projects in Gauteng from 2010 to 2015 included; 794 learnerships for

the unemployed youth, 780 learnerships for the employed, 885 workplace

experience opportunities, 310 second chance / matric rewrite learners

funded, 365 skills programmes for the unemployed and R70 million towards

the Memorandum of Agreement with the Gauteng Department of Education

(GDE) for projects. The total budget for skills development projects in

Gauteng amounted to R73 million.

4.4.2 Edutel

The presentation was made by Ms D Ferreira: Assessor and highlighted the

following: Edutel specialised in skills development training and offered

formal qualifications in different sectors of the economy. The Youth

Development qualification offered by Edutel was accredited by the South

African Qualifications Authority (SAQA) as a National Qualifications

Framework (NQF) Level 4 qualification. The programme was an entry level

qualification which capacitated learners to become youth development



practitioners, and to be able to facilitate enabling processes for the

development of young people.

The Youth Development qualification contained basics such as literacy and

numeracy, human rights, national government, project management and

relationship management. The specifics of the qualification included the

youth development history and paradigms, basic lay counselling,

community research, facilitation skills, mentoring skills and personal

review. The programme targeted people with experience in youth

development with no formal qualification, and candidates with qualification

but no experience in youth work.

Edutel conducted the training, assessment, workplace monitoring of the

programme while the ETDP SETA funded the Learnership and offered

stipends to the learners. The Youth Development Learnership was offered

over a 12 months period. The learning process included the orientation of

the programme, instructional learning, workplace learning, evidence

collection, learner support and submission of the assessments.

4.4.3 Learners in the Youth Development Learnership

The learners in the Youth Development Learnership were trained in

programmes relevant to addressing youth related challenges in their own

communities. They noted that they were better equipped as youth

practitioners to provide counselling to youth in terms of careers and psycho-

social challenges. Many of the learners worked with youths in their

communities, but they did not have the qualifications.

4.5 South West Gauteng TVET College

4.5.1 University Management

The presentation was made by Mr D Nkosi: Principal and highlighted the

following. The college was situated in the South Western part of

Johannesburg with six campuses in Dobsonville, George Tabor, Molapo,

Roodepoort, Roodepoort West and Randburg. The college had a functional

council which met at least four times a year. Other governance structures of



the college included the Student Representative Council (SRC) and

Academic Board.

The major governance challenges of the college included the need for a

permanent Chief Financial Officer (CFO) and finance manager, low and

unattractive salary scales, gross underfunding and withholding of the

63 percent of the payroll by the Department. The college had a total budget

of R344 million for 2016, which was inadequate for the total enrolment of

almost 30 000 students. The college obtained an unqualified audit report in

2014. The 2015 audit had to be halted because the previous year’s balances

as identified by the Auditor-General were not incorporated into the 2015

financial statements.

The college had a total headcount of 27 859 students for 2016 as compared

to 25 615 in 2015. The college had grown by 8 percent with no

commensurate budget to support the growth in enrolments. Based on the

2015 enrolment figures, 56 percent of the student population were females,

while males constituted 44 percent. The majority of the students at the

college were enrolled in Report 191 / Nated programmes, totaling

16 074 and the National Certificate Vocational NC(V) enrolment stood at

9 541 based on the 2015 figures. The majority of the students, 95 percent

were from Gauteng. The number of students with disabilities at the college

was 68, based on the 2016 figures.

The management and administration of bursaries was guided by the

college’s bursary policy, which had been changed to accommodate students.

The total allocation of the National Student Financial Aid (NSFAS) bursary

for the college in 2016 amounted to 85 million, which assisted 10 754

students. The college would claim the remaining R4.5 million from the

NSFAS in the third trimester. The number of students who qualified for

financial support based on the means test was higher than the actual bursary

allocation.



The college did not have its own residential facilities for students at its

campuses and students who needed accommodation were assisted to lodge

in the neighbourhood. Students were awarded accommodation allowances

up to R19 746.00 each. Accommodation allowances took the biggest chunk

of the NSFAS bursary allocation. The overall certification at the college had

increased from 40 percent to 49 percent in 2015.

4.5.2 Student Representative Council

The presentation was made Mr H Mani: SRC President and highlighted the

following. Students were negatively affected by the pending results and the

delays with the issuing of their certificates. Some students were dropping

out because there were told that they could not progress to the next level

because of the pending results.

Lack of infrastructure investment and expansion was a serious challenge at

the college. Enrolment continued to increase while the infrastructure at the

college was not expanding. In certain instances 1 200 students allegedly

shared two toilets at a campus. The college was unable to attract suitably

qualified employees and this negatively affected teaching and learning. The

college was not audited for 2015/16 and there were no steps taken against

the accounting officer for failing to get the college audited. The curriculum

review for TVET College programmes should be prioritised. The

programmes offered at the college were not aligned to respond to economic

demands. The training programmes offered 95 percent theory and only

5 percent practical lessons. The lack of infrastructure impacted on the ability

of the college to offer practical lessons adequately.

Some of the lecturers were allocated subjects that they were not qualified to

teach. In the NC(V) Primary Health and Agriculture programme, students

were offered to do mathematics literacy while the curriculum required them

to do pure Maths. As a result, some of the students were in their final year

and they were required to do Maths from Level 2.



The funding shortfall for the TVET sector remained a serious concern. Only

R2 billion of the total R16 billion administered by the NSFAS was allocated

to the TVET Colleges. Inadequate funding had led to many students

dropping out of the college.

The TVET sector should be professionalised and student representatives

should form part of the College Council. The labour market needed to take

TVET College graduates seriously, and the job advertisements should

include the NC(V) as a minimum requirement. Serious action should be

taken against the Council and the Principal if they fail to get a clean audit.

Outsourcing of staff members should end as it was a modern form of

slavery. The unfair suspension of staff members should come to an end. The

college did not have sufficient sport facilities for students. The gender

profile of the Council should be reviewed to include more females and

young people.

4.5.3 Unions

The National Education and Health Allied Workers Union (NEHAWU),

National Professional Teachers Organisation of South Africa (NAPTOSA),

South African Democratic Teachers Union (SADTU), Public Service

Association (PSA) representatives made a presentation which highlighted

the following: The unfair suspension of employees by management

remained a serious concern at the college. There was nepotism and

favoritism in the appointment of certain employees who had a special

relationship with the Principal. There was an intern employed by the college

who was paid a salary equivalent to that of permanent employees, and had

also been an intern for three years. The college appointed interns to fill the

vacant positions and they were also misplaced in their appointments.

The relationship between the college and the Department of Higher

Education and Training was questionable. The KPMG forensic audit report

that was conducted in the college was never shared with the unions, and

there was no action taken to implement the recommendations of the report.

The working conditions of lecturers were not conducive, and there was



inadequate support from the management to improve the working

conditions. The migration process of the provident funds to the Government

Employees Pension Fund (GEPF) was tedious.

The management of the college continued to increase student enrolment

while the budget of the college was not commensurate to meet the

increasing enrolment. The academic performance of students was negatively

affected by the shortage of teaching and learning resources. Students were

forced to share laptops during teaching and learning time, and the

classrooms were overcrowded. The NC(V) curriculum was outdated with

old syllabus and textbooks for reference. The NC(V) curriculum should be

reviewed to meet the industry needs. The college did not train lecturers to

adequately assist students with special needs.

4.6 Gauteng Community Education and Training

4.6.1 College Management

The meeting was held at the PQ Vundla Community Learning Centre. The

presentation was made by Mr C Wee: Acting Principal for Gauteng CET

and highlighted the following: The head office of the Gauteng CET was

situated at the Central Johannesburg TVET College Crown Mines Campus.

Gauteng had 47 Community Learning Centres (CLCs) with 310 satellites.

Of the 47 CLCs, 26 had their own dedicated infrastructure inherited from

the Gauteng Department of Education (GDE). Most of these buildings were

primary schools and they were in a poor condition, and required major

renovations. Those primary schools were plagued with historical municipal

debts. The other 21 CLCs operated from schools and TVET Colleges with

restricted operational time, and they were required to pay rental tariffs to

utilise the buildings.

The total number of learners registered in 2016 was 82 078 with 22 174

registered for the General Education and Training (GETC) Level

qualification, 56 234 for the post literacy programme and 2 947 for the skills

programme. The core programmes offered by the CLCs were the GETC

Level 1 - 4 numeracy and literacy, post literacy programmes and vocational



and skills programmes. The skills programmes offered by the CLCs were

not accredited. The College Council was fully functional and operational. Of

the 76 065 GETC learners who registered in 2015, 52 813 wrote the exams

and 23 252 were absent. The GETC learner performance results for 2015

stood at 31 percent.

4.6.2 Student Representative Council

The students at the CLCs were not equipped to compete globally and the

programmes offered were not relevant to the industry needs. There was a

high learner drop-out rate and high absenteeism. The conditions of service

for lecturers were not conducive. The CLCs lecturers were not given

sufficient training in the subjects they taught, and the majority of them were

employed on contract. The infrastructure of the CLCs required major

expansion and renovations. The buildings were not conducive for learning

and most of them did not have the facilities to cater for students with special

needs. There were no workshops facilities in the CLCs to offer skills

programmes for students.

The curriculum of the CLCs should be revised to be in line with the

economic needs of the country. It was difficult for students in the CLCs to

articulate to other post-school education and training institutions owing to

the programmes offered, some of which some were unaccredited. Students

did not have access to Wi-Fi to conduct research, textbooks and bursaries to

further their studies. There was no dedicated security personnel appointed to

protect the infrastructure and other teaching materials at the CLCs. There

were no controlled access at the CLCs and this compromised the safety of

students.

The SRC recommended that the CLCs should be allowed to utilise the

resources of the TVET College for teaching and learning purpose; the

conditions of lecturers should be improved; the curriculum should be

revised to meet the student’ needs and the CET sector should be taken

seriously like the mainstream education.



4.6.3 Site visit to the Setlakalana Molepo Community Learning Centre,

Soweto

The Committee interacted with learners who enrolled for GETC Levels and

post-literacy programmes. The learners expressed their gratitude to the CET

sector for affording them a second chance opportunity to acquire skills and

further their learning. Some of the learners dropped out from the mainstream

schooling and because of age, and they could not go back, while others

failed Matric and wanted to improve on the failed subjects.

The learners in the GETC Level 4 enrolled in the Community Learning

Centre to learn how to read and write. Some indicated that they owned small

businesses and they wanted to enhance their financial management and

accounting skills. The Community Learning Centre was well poised to

provide them with such skills. They expressed their concern about the lack

of Matric textbooks.

4.7 Public Service SETA and Gauteng City Region Academy Artisan

Training Partnership

4.7.1 Public Service SETA

The meeting was held at the MICT SETA Head Office in Gallagher Estate.

The presentation was made by Ms N Qamata, the Acting CEO and

highlighted the following: PSETA’s mandate was focused on transversal

skills for all national and provincial departments, and dealt with all skills for

departments whose core business was unique to government. The total

number of the PSETA’s constituent employees was 533 678. The PSETA’s

resources were reaching 0.4 percent of the total government workforce. The

existing public servants needed to be up-skilled / reskilled for higher levels

of performance to improve service delivery. The vacancy rate in the public

sector was 11.58 percent in 2016. 26 percent of the public sector employees

had not completed schooling, 46 percent did not have higher education at

all. Only 6 percent of the public sector employees had post-graduate

qualifications. The PSETA’s limited resources were unable to address the

huge shortage of skills in the public sector.



The total cost of the PSETA’s skills development projects nationally

amounted to R865 million with the majority of the funded project

(R348 million) in Gauteng. PSETA spent R312 million on artisan

development projects. The Gauteng City Region Academy (GCRA) applied

to the PSETA to fund 40 artisans in the field of Air-Conditioning and

Refrigeration Mechanic Apprenticeship. The project was approved and the

learners were being trained. The programme would save government

departments a lot of money if they could appoint the graduates to fix air-

condition, unlike outsourcing the services.

4.7.2 Gauteng City Region Academy

The GCRA was established to make a significant contribution in both the

public sector development and youth development for the reduction of high

unemployment. The GCRA reported to the Gauteng Department of

Education (GDE) and the Office of the Premier with regard to this area of

work. The GCRA interventions on youth development included the

bursaries for students in higher education institutions and TVET Colleges,

partnerships, learnerships, internships, unemployment database, vocational

development programmes, career education, work readiness programme and

the Harry Gwala programmes.

The GCRA was awarded funding to train 40 artisans in Air-Conditioning

and Refrigeration Mechanic. The programme was run on a core funding

model. PSETA contributed R3.2 million and the GCRCA contributed

R2.8 million for a period of three years. Learners were recruited from the

GCRA unemployment database. The programme required learners who

passed their matric with Maths and science or TVET college students with a

mechanical or electrical engineering qualification. The delivery of the

apprenticeship was based on the willingness of the industry to open its

workplaces for learning. The Ifihlile Training Academy was appointed as a

service provider to offer the training. The duration of the programme was

three years.



4.7.3 Site visit to the Ifihlile Training Academy

The Committee visited the Ifihlile Training Academy, which offered

apprenticeship training on Air-Conditioning and Refrigeration Mechanic

Apprenticeship funded by the PSETA in partnership with the Gauteng City

Region Academy (GCRA). The training programme was accredited by the

Manufacturing Engineering and Other Related Service Sector Education and

Training Authority (MERSETA). The apprentices had to complete a

minimum of 10 weeks in trade related theory, 32 weeks of off the job

practical training and 80 weeks of on the job workplace training under the

supervision of a qualified mentor.

The apprentices were given toolboxes free once they entered into a contract

with the Academy. The training in Refrigeration Mechanic equipped

learners to be ready to fix fridges after the first year. The programme also

offered learners with training in air-conditioning and ventilation. This

included training in industrial air-condition installation and maintenance,

which was one of the occupations in high demand in the country. The

minimum requirements for learners to access the programme was a matric

certificate with a pass in mathematics and science. Learners were issued

with a certificate from the Quality Council for Trades and Occupations

(QCTO) upon completion the programme. The academy trained about

40 learners which were separated into two classes of 20 learners each. There

was a very low drop-out rate of learners in the programme.

The majority of learners in the programme were graduates from the TVET

Colleges, and were unemployed before joining the apprenticeship

programme. They indicated that the training programme would enable them

to start their own businesses in their communities where there were very

few qualified refrigeration and air-conditioning mechanics. They noted that

the Refrigeration mechanics were critical to growing the economy. They

expressed their gratitude to the PSETA, GCRA and Ifihlile for affording

them a life time opportunity of training as apprentices.



5. Observations

The Committee made the following observations:

5.1 National Skills Fund and Eskom Artisan Development Partnership

5.1.1 The partnership between the NSF and Eskom in artisan training

was highly commended.

5.1.2 The increase in the number of black female artisans, particularly in

the previously male dominated welding trade was highly

commended.

5.1.3 There was need to increase the number of a new generation of

suitably qualified artisan instructors and assessors to develop an

efficient succession plan.

5.1.4 It was critical for Eskom to develop a strong partnership with

technical high schools to identify potential learners at an early age.

5.1.5 The seasonal employment offered to welders by industry was a

serious concern given the constant new developments in the trade.

5.1.6 The plan by Eskom to engage the industry to offer one year

internships to the welders to enhance their welding skills as well

the entity’s plan to absorb the graduates was commendable.

5.1.7 Inadequate coordination of the training of artisans offered by State

Owned Companies (SOCs) remained a challenge.

5.1.8 The artisan learners should acquire entrepreneurial and project

management training at the Academy to equip them with skills as

they plan to open and manage their business and training centres.

5.2 INDLELA

5.2.1 It was noted with concern that the institute heavily relied on the

manual system for trade test applications and assessments, and the

system was vulnerable to corruption.

5.2.2 The high vacancy rate at the institute was noted as a concern.

5.2.3 The institute had few workshops and trade assessors for high

demand trades, whilst there is an excess of workshops and trade

assessors for low demand trades. This had increased the average



lead time from the trade test application received until trade test

conducted.

5.2.4 It was noted that the institute had not adequately addressed all the

critical findings from the 2010 OMA forensic report on

irregularities.

5.2.5 The institute was aware of cases of candidates who had

fraudulently acquired their trade test certificates, but did not have

its own system to detect or investigate such cases. It relied on

complaints from employers.

5.2.6 The institute was not able to account for the high number of artisan

learners certificated. However, research would be undertaken to

determine the causes.

5.2.7 The institute had old and outdated equipment in some of its

workshops, which was no longer relevant to industry needs.

5.2.8 The institute was unable to upgrade its trade test assessment owing

to insufficient capacity at the State Information Technology

Agency (SITA) to support the new programme.

5.2.9 There was a decline in the number of trade test assessments

conducted by the institute owing to a large number of privately

owned trade test centres accredited by the SETAs.

5.2.10 The institute was the only public trade test centre in the country and

also charged the cheapest trade test assessment fee of R245 per

candidate.

5.2.11 There was no dedicated funding model for artisan recognition of

prior learning (ARPL) at the Department.

5.2.12 The institute contributed only 25 percent to the overall artisans

produced by the PSET institutions.

5.3 TETA / PUTCO Bus Company Artisan Development Partnership

5.3.1 The concentration of the TETA skills development projects in three

provinces (Gauteng, Western Cape and KwaZulu-Natal) was noted

as a concern given the huge demand for training in the rural and

remote areas.



5.3.2 The slow pace of gender diversity in the transport sector and artisan

training programmes was highlighted as a concern that needed to be

addressed.

5.3.3 It was noted that the training of taxi drivers in road safety

programmes was critical and TETA in partnership with the South

African National Taxi Council (SANTACO) should prioritise the

training as recommended by the Committee in 2015.

5.3.4 PUTCO Bus Company was urged to improve on its maintenance and

road worthiness of the buses.

5.3.5 The TETA Learnership for Bus Drivers was commended given its

success and the high absorption rate of candidates that completed the

learnership.

5.3.6 It was noted with concern that only 11 percent of the total workforce

at PUTCO Bus Company were females.

5.3.7 PUTCO Bus was commended for its good apprenticeship

programme for Diesel Mechanics, Auto Electricians, placements of

TVET College and university students and graduates for work-

integrated learning and internship.

5.4 ETDP SETA / Edutel Youth Development Learnership

Partnership

5.4.1 The ETDP SETA did not have an adequate budget to meet the huge

demand for skills development programmes in the entire ETDP

sector.

5.4.2 The ETDP SETA / Edutel Youth Development Learnership was

highly commended given its impact in changing the lives of

unemployed young people.

5.4.3 The delays in the issuing of certificates to learners was noted as a

concern since it delayed the learners’ opportunities in accessing

employment and other further learning opportunities.

5.4.4 Non-compliance by government departments in paying skills levies

to the ETDP SETA was noted as a concern. This was further

compounded by the gaps in the Skills Development Levies Act,



5.4.5 which exempted any public service employer in the national or

provincial sphere of government; or any national or provincial public

entity, if 80 percent or more of its expenditure is defrayed directly or

indirectly from funds voted by Parliament from paying 1 percent

skills levies.

5.4.6 The high failure rate among Matriculants was noted as a serious

concern for the country, and the matric rewrite programme was not

effective in offering young people an opportunity to obtain their

National Senior Certificate (NSC).

5.4.7 The high number of unqualified CET lecturers was raised as concern

given the Department’s plan to expand the programmes offered in

the CET sector.

5.4.8 ETDP SETA was requested to submit a breakdown list of all its

projects across the country.

South West Gauteng TVET College

5.4.9 The college did not have a Chief Financial Officer (CFO) or an

Assistant Director for finance, and the auditing process for 2015 was

negatively affected as a result. Overall, the college had a serious

challenge of filling vacant funded posts timeously, and this had

resulted in an underspending of R45 million which had to be

returned to the National Treasury.

5.4.10 The college’s budget for 2015/16 was not commensurate to support

the total enrolment of almost 30 000 students. The college estimated

that it had a funding shortfall of R198 million to fully support its

enrolment.

5.4.11 The college experienced serious challenges of inadequate

infrastructure and facilities to support students with disabilities. High

lecturer student ratio and overcrowding in classrooms owing to a

shortage of adequate infrastructure to support the student enrolment

was noted as a serious concern.

5.4.12 The relationship between the college’s management and labour

unions was marked by distrust owing to a number of unresolved

labour disputes.



5.4.13 Despite a significant progress by the State Information Technology

Agency (SITA), Umalusi and the Department in resolving the

NC(V) certification backlog, the college still had a challenge of

pending results and outstanding NC(V) certificates for students

dating back to 2012. The college was requested to send the names of

the affected students.

5.6 Gauteng Community Education and Training College: PQ Vundla

& Setlakalana Molapo Community Learning Centres

5.6.1 The CET sector was seriously underfunded and there was no suitable

funding to support teaching and learning needs. 95 percent of the R2

billion total budget for the CET sector was allocated for

compensation of the employees’ costs and the remaining 5 percent

was for operations.

5.6.2 The CET sector had a high number of learners (68.7% of total

enrolment) enrolled for the matric rewrite programme, but there was

no funding from the Department of Basic Education to support this

function.

5.6.3 The Department inherited dilapidated infrastructure from the

provincial government, which was used as the CLCs. The

Department did not have sufficient funds to refurbish the inherited

infrastructure.

5.6.4 The CLCs that did not have their own infrastructure were expected

to pay rental tariffs to the School Governing Bodies (SGBs) for the

use of schools for teaching and learning.

5.6.5 Some of the CLCs faced the possibilities of having their power cut

by Eskom due to unsettled electricity bills and other rates.

5.6.6 There was no clarity as to who was responsible for the payment of

historic municipal debts incurred by the former primary schools

inherited by the CLCs. It was noted that discussions were underway

between the DHET Regional Coordinator with the Gauteng

Department of Public Works.

5.6.7 There was a high drop-out rate of learners, particularly in the

General Education and Training Certificate (GETC) Adult Basic



Education and Training (ABET) Level 4 programme. The CLCs did

not have tracking mechanisms for learners who dropped-out.

5.6.8 There was a serious shortage of textbooks and other learning

materials for learners, particularly, for the matric re-write

programme.

5.6.9 There was a challenge with the issuing of certificates because the

State Information Technology Agency (SITA) IT system was not

able to consolidate learner examination data written in different

exam cycles. The CLCs administration support staff experienced

challenges in capturing the outstanding marks, owing to the absence

of suitable IT system for this function.

5.6.10 Unfavourable conditions of service of lecturers had resulted in high

staff turn-over in the CET sector to mainstream education.

5.6.11 Some of the skills programme offered by the CLCs were not

accredited and this made it difficult for learners to articulate to other

PSET institutions.

5.6.12 The CLCs did not have the necessary infrastructure such as

workshops for the skills programmes they offered to learners.

5.6.13 The Community Learning Centres were still not sure about their

expanded mandate as the new institutional type, in particular, their

role with regard to the communities they served.

5.7 Public Service SETA / GCRA & Ifihlile Training Academy

5.7.1 It was noted with serious concern that the PSETA could only assist

0.4 percent of the public workforce owing to its limited financial

resources.

5.7.2 The non-payment of the 1 percent skills levy by government

departments was noted as a serious concern given the huge demand

for skills development in the public sector.

5.7.3 The accessibility of the PSETA was noted as a serious concern since

it did not have regional offices in other eight provinces.

5.7.4 The concentration of the PSETA projects, particularly in the more

urban provinces was noted as a concern.



5.7.5 The PSETA was commended for funding the Refrigeration

Mechanic artisan programme since it was in demand and formed part

of the scarce and critical skill list.

6. Conclusion

The oversight visit of the Committee specifically focused on the role played

by the post-school education and training (PSET) institutions in the training

and development of artisans to grow the economy. The National

Development Plan (NDP) had set a target for South Africa to produce

30 000 artisans annually by 2030, and this was a massive target, which

required collaborations from all artisan development role-players to achieve.

The Committee embarked on an oversight visit to the NSF and SETA

funded projects in Gauteng to assess whether the investment into the artisan

development projects yielded the intended outcomes, as per the government

priorities.

The oversight visit to the NSF and SETA funded projects was the first of its

kind for the Committee. Members had an opportunity to interact with the

role-players involved in artisan training as well the apprentices who were

involved in the training programmes. The oversight visit also included the

site visits to the workshops where practical learning was offered to the

students. The students were also given an opportunity to demonstrate their

acquired skills to members. Most of the students who interacted with

Committee members indicated that the apprenticeship and learnerships

funded by the NSF and the SETAs were a life changing opportunity that

would enhance their opportunities of gaining employment and even starting

their own businesses.

As part of the oversight visit, the Committee also visited one TVET College

and the Community Learning Centres around Soweto. The Committee

observed that the TVET and Community Education and Training sectors

were underfunded, while the demands for the skills offered by these

institutions was growing. The absence of a dedicated infrastructure funding

for both the TVET and CET sectors remained a challenge for their future

expansion. It was also concerning that some of the programmes offered at



these institutions were not relevant to the skills needs of the industry, and

the students struggled to find employment after completing their studies.

The Committee committed to further engage with the Department to deal

with the urgent matters that affected the TVET and CET sectors.

7. Recommendations

The Committee recommends that the Minister of Higher Education and

Training consider the following:

7.1 National Skills Fund and Eskom Artisan Development Partnership

7.1.1 Strong partnerships should be created between Eskom and the

surrounding Technical High Schools to expose learners to the

apprenticeships programmes offered by the Eskom Academy of

Learning (EAL);

7.1.2 There is a need for better coordination in the training of artisans,

particularly by the State Owned Companies (SOCs) including the

exit plans for artisan learners;

7.1.3 Engagements with the industry should be undertaken to improve the

working conditions, particularly for welders since they are mostly

employed on short term contracts; and

7.1.4 There is a need for the development of a new generation of artisan

trainers given the high number of ageing artisan trainers.

7.2 Institute for the National Development of Learnerships

Employment Skills and Labour Assessments (INDLELA)

7.2.1 Interventions should be made to engage the SITA on the

procurement costs of its IT system.

7.2.2 The filling of outstanding vacancies should be prioritised, especially

the appointment of assessors for the trades that are in high demand;

7.2.3 The institute should convert the workshop for low demand trades to

high demand trades, in order to achieve its targets of the average lead

time from the trade test application received until trade test

conducted;



7.2.4 The 2010 OMA forensic audit report on allegations of theft and

fraud at INDLELA should be furnished to the Committee;

7.2.5 The procurement of modern equipment to conduct trade tests should

be prioritised, since the workshops had outdated equipment;

7.2.6 The Information and Communication Technology (ICT) systems of

the institute should be upgraded to eliminate the use of manual

system and to prevent corruption and fraudulent activities in trade

assessment from recurring; and

7.2.7 The Department in partnership with other State Owned Entities

involved in artisan training should develop and fund a strategy

towards a new generation of trade assessors, given that the country

was facing a challenge of ageing trade assessors.

7.3 Transport Education and Training Authority (TETA) and PUTCO

Bus Company Artisan Development Partnership

7.3.1 The funding of artisan training and development programmes should

also be spread to rural areas;

7.3.2 The transport industry should create an enabling environment for

females to work, given the low representation of women in the

sector;

7.3.3 The training of female candidates in the Diesel Mechanic and Auto-

Electrician trades should be expedited.

7.4 Education Training and Development Practices SETA and Edutel

Youth Development Learnership Partnership

7.4.1 The ETDP SETA / Edutel Youth Development Learnership should

be expanded to other provinces given its impact in changing the

lives of the young people;

7.4.2 The Committee should engage the National Treasury on the non-

compliance of some of the Government departments in the payment

of levies to the ETDP SETA and other government related SETAs;

7.4.3 The delays in the issuing of certificates to learners that have

completed their learnerships should be addressed;



7.4.4 The ETDP SETA should partner with the DHET in developing the

curriculum suitable for the needs of adults and youth in the

Community Education and Training (CET) sector; and

7.4.5 Adequate funding should be allocated for the matric re-write

programme given its huge demand.

7.5 South West Gauteng TVET College

7.5.1 The Department should brief the Committee on 12 October 2016 on

the improvement plans regarding the challenges raised by the

stakeholders at the South West Gauteng TVET College; and a

follow-up meeting should be convened with the South West Gauteng

TVET College and the Department in January 2017 to receive a

progress report towards addressing the challenges raised;

7.5.2 A meeting should be convened with the Department, Umalusi and

the Quality Council for Trades and Occupations to address the issue

of curriculum review for the National Certificate Vocational

(NC(V);

7.5.3 The funded vacant posts should be filled to capacitate the college,

and to eliminate the underspending on compensation of employees’

budget;

7.5.4 The Department should address the issue of outstanding NC(V)

certificates and pending results for students;

7.5.5 The Department should facilitate a dialogue between the college

management and the unions to address with the ongoing conflict

between the stakeholders;

7.5.6 The college’ management should develop a platform for the

consideration of all the stakeholders grievances, and communication

between management and stakeholders should be improved; and

7.5.7 Additional funding should be allocated to the college to support its

student enrolment requirements.



7.6 Community Education and Training (CET)

7.6.1 Additional funding should be allocated to the CET sector to support

its expansion;

7.6.2 The conditions of service for the CET lecturers should be improved

to reduce the high staff turn-over;

7.6.3 The Department should engage with the Gauteng provincial

government to resolve the historic debts inherited by the Community

Learning Centres (CLCs) due to the migration process;

7.6.4 The Department should resolve the challenge of non-availability of

duplicate certificates for CET qualifications;

7.6.5 The Department should procure a functional system for

consolidation of the outstanding marks for CET examinations;

7.6.6 SETAs should work closely with the CET sector to fund and accredit

the skills development programmes offered by the CLCs;

7.6.7 The employment of suitably qualified lecturers should be prioritised

for the CET sector; and

7.6.8 The Committee should confer with the Portfolio Committee on Basic

Education and the Select Committee on Education and Recreation on

the funding for the Matric Rewrite Programme/ Matric Second

Chance in the CLCs; and to also engage on the reasons for the

mainstream schools not to allow those who failed Matric to repeat at

the their respective schools.

7.7 Public Service SETA and Gauteng City Region Academy (GCRA)

Artisan Development Partnership

7.7.1 Government departments should be encouraged to pay the 1 percent

skills levy to the PSETA to address the need for skills development

in the public sector; and

7.7.2 PSETA’s skills development programmes should be extended to

rural areas where there is high unemployment and huge demand for

training.


Documents

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