Seta funds exposed to risk as audit flags dodgy ID numbers

ETDP Seta has been rocked by concerns over public funds management, with 2869 employers pocketing grants. The Education, Training and Development Practices Sector Education and Training Authority (ETDP Seta) has been rocked by concerns over public funds management, with 2 869 employers pocketing grants despite having outstanding skills development levy contributions. According to findings contained in the auditor-general’s (AG) 2025-26 management audit report, 141 students have dodgy identification numbers and 412 student identification numbers appeared across multiple Seta databases. Seta funds exposed to risk The audit report additionally identified 164 student identification numbers linked to different surnames, while 10 beneficiaries were older than 65 when enrolled in funded interventions. Auditor-general Tsakani Maluleke said that the weaknesses increased the risk of duplicate funding, inaccurate performance reporting and public money being allocated to beneficiaries whose eligibility had not been established. “The analysis identified students whose ID numbers were recorded in learning programme listings of ETDP Seta and one or more other Setas during the same reporting period,” said Maluleke’s report. “A total of 523 exceptions were communicated to management. After inspection of the evidence submitted we confirmed that 412 were valid exceptions,” her audit report states. The audit identified weaknesses in the validation of student identification information before enrolment, funding and performance reporting. “The presence of invalid ID numbers creates a risk that expenditure may have been incurred for students who could not be verified as valid beneficiaries, which may result in inaccurate student records, overstated performance achievements and possible financial loss.” AG identified R15.8 million in irregular expenditure The AG said that these further limited the Seta’s ability to demonstrate that skills development funding reached legitimate beneficiaries and contributed to measurable skills development outcomes. The AG also identified R15.8 million in irregular expenditure from non-compliance with relevant legislation and that R1.59 million remained under assessment for more than 12 months without a determination on whether it constituted irregular, fruitless and wasteful expenditure. Auditors also flagged R1.28 million in rental and related expenditure incurred at Seta’s Johannesburg head office during periods when the premises were not fully occupied or utilised for their intended purpose. The Seta explained that the duplicate ID number exceptions relate to students who participated in programmes funded by various Setas during the relevant reporting periods. Spokesperson Anna-Joy Motene said the skills development system currently had no centralised platform to facilitate cross-verification of learner records across the sector. “The 141 records containing invalid ID numbers were subsequently corrected…and reviewed by the [AG]. These errors were associated with projects administered through external implementing partners,” she said. Audit found 141 students have dodgy ID numbers According to Motene, the issue of different surnames was attributed to spelling errors and changes in students’ surnames following marriage or for personal reasons, which had not yet been updated in the ETDP Seta’s records. She said all 717 student records relate specifically to ETDP Seta-funded students, as reported in the organisation’s audited 2025- 26 annual report. “Management confirms that these exceptions did not result in duplicate funding or inflated performance figures,” Motene said. She said a forensic investigation has been commissioned into the head office building scandal to establish the circumstances surrounding the expenditure and determine any accountability measures required. “Written warnings were issued to officials in respect of the travel-related expenditure and the appointment of the service provider whose tax affairs were not compliant at the time of award,” Motene said.