For a decade, Minister Blade Nzimande turned a blind eye to procurement issues, but the new Higher Education Committee is now tackling SSETA corruption, as exposed by OUTA. 

OUTA has been investigating and exposing tender corruption and procurement irregularities at the Services SETA (SSETA) since 2018. Some key issues uncovered by a Werksman’s investigation into the matter – brought about by OUTA’s persistent pressure on SSETA – revealed shocking irregularities. This includes a tender ballooning by over 1200% (from R6.6m to R89m) awarded to a bidder who should have been disqualified early in the process. The subsequent report compiled by Werksmans revealed further irregularities, such as a mere five-day gap between orders and payments, no checks on bidders’ experience or capacity, and a former CFO’s conflict of interest due to a past relationship with a winning bidder.

These are just some of the shocking violations under Themba Mhambi (former board chair), Andile Nongogo (then CFO, later CEO), and Tsheola Matsebe (CFO from 2017). OUTA began investigating the matter in 2018 after three SSETA employees came forward with evidence of corruption.

Despite the damning Werksmans report, the institution failed to act on any of the law firm’s recommendations to hold senior executives and board members accountable. Meanwhile, the three whistleblowers were fired.               

Werksmans investigated nine SSETA tenders and found none followed the proper process outlined in National Treasury regulations. Two tenders—Grayson Reed Consulting and Star Sign and Print—were also scrutinized by OUTA, resulting in criminal charges. We laid additional charges over another overpriced tender awarded while Nongogo was CEO. (These charges are actively investigated, and we are in regular communication with the investigators.)

After SSETA refused to share the Werksmans report with us, we took the matter to the Information Regulator, which eventually ordered SSETA to release the report. We promptly shared it with Parliament’s Portfolio Committee on Higher Education, along with our findings.

In a welcome turn of events, the Committee grilled SSETA leadership on October 9, 2024, sharply criticising their failure to act on Werksmans’ recommendations.

We appreciate this action and look forward to working with the Portfolio Committee and the new Minister of Higher Education, Dr. Nobuhle Nkabane, to eliminate corruption in the sector. This sector’s funds should be spent on the further education and upskilling of our youth, not lining the pockets of cadres.

For a more comprehensive explanation of the issue and the findings of the Werksmans report, click here.