OUTA takes action against the irregular reappointment of the Inseta CEO
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HOLDING PUBLIC OFFICIALS TO ACCOUNT: TAKING ACTION AGAINST THE INSURANCE SETA, GUGU MKHIZE AND THE MINISTER
In late 2025, OUTA lodged a legal challenge to the reappointment of Gugu Mkhize as the Insurance Sector Education and Training Authority (Inseta) CEO for another five years, on the grounds that the appointment process was irregular and Mkhize was not competent. The case was filed in the Pretoria High Court.
Why OUTA is taking Inseta and the Minister to court
OUTA is challenging the legality of the Minister’s decision to re-appoint the Inseta CEO. The case centres on failures to follow mandatory legal and governance processes, and OUTA argues that transparency, accountability and public trust in SETAs are at stake. The application is brought in the public interest, given the scale of public funds involved.
This case has implications raises fundamental questions about whether governance rules across all SETAs are being followed, and whether public institutions can bypass the law without consequence. OUTA’s position is clear: the law applies to everyone, and public power must be exercised lawfully, transparently, and in the public interest.
- OUTA believes the reappointment is unlawful: OUTA contends that the Minister of Higher Education and Training reappointed the Inseta CEO without complying with the Skills Development Act and its regulations. The decision constitutes administrative action that, in OUTA’s view, is unlawful and must be reviewed and set aside. OUTA believes that the Minister did not apply his mind when making the appointment.
- OUTA believes the recruitment process was neither transparent nor lawful: Even where a CEO is being considered for re-appointment, the law requires a transparent and structured process. OUTA argues that no proper recruitment, shortlisting, or evaluation took place, and that legal safeguards were ignored.
- OUTA says there is no record of proven satisfactory performance: The regulations allow CEOs to be reappointed only if their performance has been shown to be satisfactory. OUTA maintains that there is no indication that Gugu Mkhize’s performance was properly evaluated or that her track record was meaningfully considered before the decision to reappoint her was made.
- The accounting authority was not properly constituted: OUTA raises serious concerns that Inseta's accounting authority (the board) was not lawfully or fully constituted at the time key decisions were made. This calls into question whether any recommendation to the Minister was legally valid.
- OUTA acts to protect the public interest and public funds: The SETAs manage billions of rand in public money. OUTA argues that allowing unlawful governance practices to go unchallenged undermines accountability, service delivery, and public confidence in the skills development system.
The court papers
The case is brought by OUTA, and the five respondents are the Minister of Higher Education and Training, the Inseta board, the Department of Higher Education and Training, the Inseta, and Gugu Mkhize.
The court papers are here:
- The notice of motion is here;
- The notice declining mediation is here;
- The founding affidavit, by Advocate Stefanie Fick, OUTA Executive Director for Accountability, is here;
- The annexures are here: FA3 (Inseta constitution); FA4 (regulations for appointing a SETA CEO); FA5 (submission to the Minister on SETA CEO recommendations); FA6 (Minister's announcement on appointment of SETA boards); FA7 (letter from OUTA to Minister); FA8 (letter from Minister to OUTA); FA9 (Facebook post); FA10 (SETA internal advert); and FA10.1, FA10.2, FA10.3 & FA10.4 (SETA audit reports 2022 to 2025).
Timeline
1 April 2020: The Insurance sector education and training authority (InSETA) board was appointed for a five-year term. This body is legally responsible for overseeing governance and recommending CEO appointments.
30 June 2024: President Cyril Ramaphosa appoints Nobuhle Nkabane as Minister of Higher Education and Training.
15 November 2024: Minister Nkabane directs all SETA CEOs to invite nominations for SETA board members.
19 November 2024: Minister Nkabane gazettes a call for nominations for the chairpersons of the boards of all the SETAs. Without chairpersons, the boards are not properly constituted.
15 December 2024: Extended deadline closes for submission of chairperson and board nominations.
March 2025: Minister Nkabane extends all SETA CEO contracts by six months to 30 September 2025 and, in the absence of boards, appoints them as acting accounting authorities.
12 March 2025: The Department of Higher Education and Training’s Director-General reports to Parliament on progress with SETA board appointments.
Early May 2025: Minister Nkabane announces the appointment of SETA chairpersons.
16 May 2025: Minister Nkabane withdraws chairperson appointments following public and political pressure.
23 May 2025: New call for nominations for SETA chairpersons published, closing on 13 June 2025.
21 July 2025: President Ramaphosa removes Nkabane and replaces her with Buti Manamela as Minister of Higher Education and Training.
19 August 2025: Minister Manamela appoints administrators for the Services SETA, Construction SETA (CETA) and Local Government SETA.
29 September 2025: Minister Manamela directs SETA boards to recommend existing CEOs for five-year reappointments.
30 September 2025: Previous SETA CEO contracts expire.
2 October 2025: Minister Manamela announces the appointment of boards for all SETAs, effective 30 September 2025 (see here). No chairpersons are appointed.
October 2025: Minister approves and signs five-year reappointment letters for SETA CEOs, expiring March 2030.
23 October 2025: Inseta publicly celebrates the reappointment of Gugu Mkhize as CEO of Inseta. This occurred before any formal ministerial or Cabinet approval.
5 December 2025: Cabinet approves the appointments of the SETA chairs, including Refilwe Matenche as Inseta chair (see here).
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