Inseta suspends CEO Gugu Mkhize amid mounting governance concerns

The development follows years of concerns raised by OUTA regarding governance, procurement practices, transparency, and accountability within the organisation. OUTA says the suspension should mark the beginning, not the end, of efforts to uncover the full extent of any maladministration or wrongdoing at the Insurance Sector Training Authority (Inseta).

Inseta manages billions of rands collected through skills development levies and is entrusted with advancing skills development within South Africa’s insurance sector. OUTA says these public funds must be managed with the highest levels of integrity, transparency, and accountability.

“For years, serious questions have been raised about governance, procurement, and transparency at Inseta,” says Wayne Duvenage, OUTA CEO.

“A suspension is not accountability. It is the start of a process. South Africans now need assurance that these concerns will be investigated thoroughly, independently, and without fear or favour.”

OUTA recently instituted legal proceedings against Higher Education and Training Minister Buti Manamela to review and set aside his decision to reappoint Mkhize to the Inseta Board for a further five-year term from 2025 to 2030. OUTA contends that the appointment process was procedurally flawed and failed to adequately consider concerns relating to governance and accountability.

The organisation has also raised concerns about Inseta’s audit outcomes. During Mkhize’s tenure as the accounting authority, Inseta received qualified audit outcomes for five consecutive years, raising serious concerns about governance, financial controls, and oversight within the institution.

Over several years, OUTA submitted numerous requests for information to Inseta in terms of the Promotion of Access to Information Act (PAIA), seeking records related to governance and procurement matters. Despite following the prescribed processes, the requested information was not provided.

After escalating the matter to the Information Regulator, OUTA continues to pursue all available avenues to obtain access to the information and remains committed to ensuring transparency and accountability at Inseta.

“Transparency is not optional in publicly funded institutions,” says Duvenage.

“When access to information is repeatedly denied, and concerns remain unanswered, public confidence is undermined. Accountability requires openness, particularly where public funds are involved.”

OUTA says any investigation should extend beyond the immediate circumstances surrounding Mkhize’s suspension and examine broader governance, procurement, and financial management concerns within the organisation.

The organisation believes investigators should engage with all relevant stakeholders and examine concerns that have been raised over several years regarding procurement processes, governance failures, and financial management practices at Inseta.

“A credible investigation must follow the evidence wherever it leads,” says Duvenage.

“It should establish whether there was irregular or wasteful expenditure, whether procurement processes complied with the law, whether conflicts of interest existed, and whether any provisions of the Public Finance Management Act were breached.”

OUTA says the suspension represents an important development, but accountability will ultimately be measured by the quality of the investigation and the consequences that follow if wrongdoing is uncovered.

“If misconduct is identified, appropriate disciplinary, civil, and criminal action must follow. South Africans deserve confidence that public institutions are governed in the public interest and not for the benefit of a few.”

Supporting Documents

• A soundclip from Wayne Duvenage, OUTA CEO is available here.