Minister of Higher Education, Blade Nzimande, has gazetted a proposal aimed at scrapping 21 Sector Education and Training Authorities (Setas) which receive more than an annual R13 billion in ring-faced funds. The funds will instead be directed to the National Skills Fund, where all the higher education funds will be centrally administered.
The highlight of the proposal is that Setas have two more years to make a transition from “authorities” to “advisory boards”. This will result in the bodies having little of their current role remaining.
This will also have serious implications on the sustainability of the new entities, which will potentially lose the big chunk of the skills levy funding. The skills levy is raised from 1% pay role tax.
The announcement follows recommendations made in the 2014 White paper for Post School Education and Training which suggested that the Setas be reshaped and their levy funds directed at the public education sectors will be implemented.
