Safety and Security Sector Education and Training Authority (SASSETA) progress report on addressing Auditor-General of South Africa (AGSA)'s report issues

Higher Education, Science and Innovation

13 March 2013
Chairperson: Ms N Gina (ANC)
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Meeting Summary

The Portfolio Committee on Higher Education and Training met to consider the report of the Safety and Security Sector Education and Training Authority (SASSETA) (the Authority) on issues earlier highlighted in the Auditor-General (AGSA)'s report for 2011/12 session. The Chairman of the Board of the Authority led the delegation and in the team was the Acting Chief Executive Officer of the Authority.

The delegation discussed exclusively with the Committee issues raised in the Auditor General’s report on the 2011/12 financial year, the interventions made and remedial efforts. Salient amongst the issues dealt with were supply chain and catering services to the Authority, joint ventures, staff records, internal affairs and control.

Disciplinary investigation and measures handed out to erring officers were discussed and treated in confidence.

Meeting report

Election of Acting Chairperson
The meeting commenced with the Committee Secretary's informing Members of the Chairperson’s absence and the procedure to elect an Acting Chairperson. Mr G Radebe (ANC) nominated Ms N Gina (ANC) as the Acting Chairperson; Mr C Moni (ANC) seconded the nomination. There were no objections to the nomination and deliberations commenced.

Introduction
The Acting Chairperson welcomed all to the meeting and asked for introduction of all present, which was done promptly. Recourse was made to the proceedings of the meeting held in October 2012 and the need to resolve and work on the grey areas, hiccups and matters highlighted in the Auditor-General of South Africa (AGSA)'s report on the Safety and Security Sector Education & Training Authority (SASSETA) which was deemed unsatisfactory.

Mr Abbey Witbooi, SASSETA Board Chairperson, appreciated the Committee's efforts and acknowledged the need for more effort from the Board as well as the executives of the Authority. Relevant efforts were being made though not at the level the Committee might be looking forward to. He made a spirited effort to clear areas already in the report ranging from the supply chain to the audit sector. A background of the issues and the resultant effect was given, though it was also contained in the official report to the Committee.

The Acting Chairperson wanted the Board to go straight to the areas in question, detailing the issues and efforts put in place to address such.

Ms Ntombekhaya Qamata, SASSETA Acting CEO, made the presentation on behalf of the Board and highlighted the areas (findings), business process already put in place, the current status of action and remarks on each matter. There were 61 issues in all. Salient among the issues were supply chain management, internal affairs, joint ventures, capacity of staff, and audit. Mr Luvuyo Mboniswa, the Chief Financial Officer of SASSETA, gave explanations on catering services and bidding, and further explanation on the audit process. (See attached document).

Discussion

Mr G Radebe (ANC) in appreciating the efforts of the Committee sought clarity on the link of internal audit and catering. To the best of his knowledge, both were different sectors. He wanted an explanation on the issue.

Mr Mbonsiwa explained that services of above R2 000 in value were subjected to internal control by requiring three quotations. This explained where the internal control came in.

Dr L Bosman (DA) showed concern on some of the issues on the report. He sought confirmation on how confident the SASSETA was that the issues would be resolved before the end of the financial year. Likewise, referring to points 6-9, which centred on learners and certificates, he asked how difficult it was to procure and issue certificates. In his opinion, the certificates should be issued on time as these enabled learners to seek jobs in the market. He could not understand how the sector would not know the skills it was meant to provide. The financial situation of the Authority was worrying due to lapse of control at the top.

Mr C Moni (ANC) questioned the Authority on the exact number of quotations required by the supplier. He also sought clarification on the lack of capacity of staff whether based on non-competence or unwillingness to work of the staff. Also, reconciliation of leave should not be dependent on any one, as it needed only the effectiveness of the management.

Mr S Mayathula (ANC) pointed out his concerns on technical issues in the report. The meaning of “Legend” used was not stated. In the chart used, there was discrepancy in the figures, as the 8% should read 13%. The use of abbreviated words should be avoided where not explained, as on page 5 “AOPO”. On issue 39, confirmation on the general standard was needed in so far as it concerned catering. He noted the over reliance of the executives on referring matters to Board sitting in March and wanted to confirm whether the Board had not met since the Auditor-General had highlighted the issues. On issue 59, the real situation was not clarified. Ms Qamata had said ‘addressed’, while the column still read “Not Addressed”.

Mr Radebe voiced his opinion on his concern about the non-prioritisation of the executive of the issues in question and the main objective of the Authority. The issue of learners and certificates should be of the utmost importance and should be addressed. The difference in amount between the old and new lease should be known and clearly stated. Issues 15 and 16 needed in-depth clarification. Management of the joint ventures should be explained elaborately. On issue of internal control, other issues, like stationery, filing, finance etc., should be examined also and not only catering.

Mr S Makhubele (ANC) expressed his amazement at the lack of information and communication technology (ICT) of the Authority as no back-up was said to exist. This could be a disadvantage to records and filing. On issue 32, the executive had not explained why evaluation was not done. Failure to carry out the evaluation was not mentioned. He challenged the Authority to maintain a standard policy. Flouting of policy and accounting principles should be discouraged. The manners at which service providers would be rotated should be known as well as the manner of competition and the ceiling on the charges applied.

The Acting Chairperson, in imploring the Board, sought for sincere responses and to take the Committee into confidence, especially in connection with capacity of the workers.

Mr Witbooi, in response, defined the lack of capacity as lack of efficiency in staff, wherein their willingness and commitment to work was questioned.

Ms Qamata told the Committee that questions would be answered by the senior managers concerned.

Mr Bhekinkosi Mvovo, a member of the SASSETA Executive Committee, explained the issue of technicalities as confusion in identification and numbering. The main objective of the Authority was still in focus but issues like catering, minutes of meeting, and management were problems which had been examined in order to help the Executive Committee sharpen its focus. These impediments to implementing targets and objectives were being addressed through policy making and structuring. By the next financial year, things would have been sorted out.

Ms Qamata explained the management actions as interventions based on the supply chain. The officer in charge had been suspended. Such actions by the Executive Committee were the interventions in the Authority. The next financial year would be devoid of repeat findings as the senior managers had been made accountable for their respective departments so as not to allow any shortfalls. Letters were sent out to the senior managers to address this situation and to ensure no repeat in the 2013/14 year.

Mr Solly Ngoasheng, SASSETA Senior Manager: Skills Development and Administration, stated that there was no back-log of certificates as at December 2012. The certificates pending were the result of receiving information late, and the movement and correction of salient errors. This has since been rectified and resolved.

On the issue of the 'host sector skills plan', Ms Qamata admitted the shortcomings and stated that a revised plan, with the help of the Department of Higher Education and Training (DHET), had been submitted which was now in conformity and compliance with the plan required and had no issue raised when submitted for interim audit.

The CFO explained the issue of financial control on procurement goods and services. The transactions were based on certain levels. A transaction of value above R2 000 required three quotations while a transaction above R500 000 went to the Tender Board. Payment went through to the provider after approval and certification. This was done through verification of invoices and the approval. These were the controls put in place in this area. On the issue of lease, capital and interest, no problem had existed with the auditors and the matter had been rectified.

Mr Clive Mtshisa, DHET Acting DDG: Skills Development, implored Executive Committee members to answer the questions of the Honourable Members in a structured manner so as to satisfy all questions asked.

Ms Qamata reiterated the commitment of the Executive Committee to resolve the issue of relief reconciliation. But this has been hampered due to the non-availability of electronic devices, as the manual one, not signed off by the human resources (HR) unit, was the one complained about in the AGSA report. The discrepancies surrounding the pie chart as well as the acronyms were looked into and would be amended appropriately.

The CFO addressed issue 60 and stated that it had been rectified and was no longer pending. The policy approved by the Board for suppliers/caterers was still been used and the quotation was adhered to. The rotation policy was, however, proving difficult at times. A price ceiling/range was involved depending of the supply. Some of these decisions were left to the Board for decision.

Ms Qamata clarified the notion of over-reliance on the Board and the Board's late attendance to issues. Matters relating to the issue had already been tabled back in December but the Board elected to deal with the whole issue at once. The Board sat next on 22 March to resolve all the issues.  The management of joint ventures was addressed as soon as the problem was noticed. The Authority would not allow such ventures again and the report would be available after the briefing. On the issue of difference in amount between the leases, the exact figure was not disclosed but earlier amount was put at R330 000 and now the Authority was saving R110, 000 on the new building. This was the estimated amount saved so far. Part of the intervention by the Executive Committee was the retro-filing put in place for the Authority’s documents. Conversion of manual hard documents to backups was in progress.

Mr Makubetse Sekhonyane, SASSETA Senior Manager: Skills Implementation, clarifying issues on the failure to evaluate the Letlhabile Project, aligned them to the discontinuance of the project by the initial provider. The need for a new provider had arisen but had not been finalised.

Mr Witbooi reiterated the Board’s willingness to do the right thing and used the catering example as the yardstick used by the Board for the interventions.

Ms Qamata explained the issue of performance of co-ordination of management objectives and preparation of budget. It had been addressed and resolved. The budget was now been prepared to align with the performance, which was the subject of complaint originally. Full accountability had now been placed in the office of the CEO for implementation of policies and objectives. This had been lacking all the while. The bidding process employed was pending because it was not up to the R500 000 limit as at the reporting stage. The process could either be discretionary (DG process) or an administrative bid process. The latter entailed the supply chain bidding process. This area had been effectively addressed upon intervention of the Executive Committee, which led to the dismissal of an official. The Authority had eight temporary workers still on board and helping in the preparation for the next audit of the Authority.

Mr A Mpontshane (IFP) wanted an explanation from the Chairman of SASSETA Board as to the idea of a consultant running the secretariat, the financial implication and the skills of the workers in the section.

Mr Witbooi reiterated the commitment of the Board to revitalise the secretariat. After the dismissal of the secretary and non-effectiveness of the successor, a law firm was employed for an initial three months to provide legal advice as well as secretariat duties. This was a temporary measure though.

The Acting Chairperson, while admonishing the Authority not to lose focus on its main objective and to explore all available avenues to make it work, asked the Department of Higher Education and Training when the incoming Chief Executive Officer of SASSETA would be appointed.

Mr Mtshisa replied that both the Minister and the Cabinet had approved the appointment, and the letter of appointment was with the accounting officer. The next step was to get in touch with the appointee.

The Executive Committee left the room so that Mr Witbooi and Ms Qamata could present the report of intervention and disciplinary matters to the Committee.

Mr Witbooi informed the Committee that the new CEO had been informed of her appointment and that she would start on 01 April 2013. She would attend the next Board meeting.

With respect to the investigation carried out, Mr Witbooi informed the Committee of disciplinary actions taken. Different investigative panels were set up and the outcomes were being looked into. Necessary steps had been taken to address the outcomes. The lawyer of the Authority had been notified to look at some of the contracts entered into for legal advice as well as how to get a refund. Officials involved in the investigations were still 'under wraps' as they had not been informed, but they would be duly charged upon outcome of the investigations: the documents were labelled classified. Decisions already arrived at included non-renewal of the internal auditing firm contract with the Authority. Performance bonuses to senior managers ceased as their performance was not encouraging.

Mr Bosman, showing displeasure at the developments, asked Mr Witbooi to ascertain the exact figure in question.

Mr Witbooi replied that an exact figure could not be ascertained, as an investigation was still ongoing.

Mr Mtshisa expressed satisfaction at the Board's action in sanitising the Authority.

Mr Mpontshane expressed appreciation on the work done so far by the Board.

The Acting Chairperson appreciated the effort of the Board and pledged the support of the Committee in helping remedy all discrepancies, where necessary.

Committee minutes
The Committee postponed consideration and adoption of minutes until the next meeting.

The meeting was adjourned. 

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