Axe hovers over ISETT SETA

Johannesburg, 16 Jul 2007

Parliament's Portfolio Committee on Labour is considering withdrawing its support for the Information Systems, Electronics and Telecommunications Technologies Sector Education and Training Authority (ISETT SETA), following two qualified reports from the auditor-general (AG).

ISETT SETA CEO Oupa Mopaki says the organisation has had some problems, but he is satisfied it is performing in accordance with its mandate.

Last month, the committee questioned the progress the authority had made in turning around what was perceived to be a dysfunctional organisation. Under discussion were the issues raised by the AG and the Standing Committee on Public Accounts.

At the time, Mopaki and ISETT SETA chairman Lucky Masilela said the organisation had addressed the AG's four areas of concern: implementing measures to prevent further disclaimers on its financials, curtailing high staff turnover, payment of bonuses despite the AG's disclaimers, and inadequate monitoring of consultants.

However, portfolio members were less than impressed with ISETT SETA's presentation, suggesting the organisation's future needed to be considered.

ANC committee member Eric Mtshali hit back at the authority, asking committee chairman, Onewang Kasienyane, to "register his dissatisfaction" at the presentation and answers offered by the SETA.

"Financially, policies and procedures are a problem. The AG says the high turnover of staff in the finance division is an issue. Why did you employ a [CFO] without the skills in the first place? This is just one of the issues.

"All these issues raise questions as to whether the committee should be trying to help the SETA continue or whether it should be closed down," he concluded.

Misunderstood

Mopaki says ISETT SETA's annual report for the 2006/07 financial year is with the AG and, while he does not want to pre-empt the conclusion, he believes the organisation has turned the corner.

Receiving an unqualified audit would restore its standing with the portfolio committee and remove the chance of losing its support, believes Mopaki.

"I was quite disappointed by the meeting. Rather than going through our 2005/06 annual report to understand our full performance, they just focused on the AG's disclaimer. There are two aspects to our responsibilities: first to meet the requirements of the National Skills Development Strategy (NSDS) and secondly to meet the financial management requirements of a government organisation.

"We received a 97% performance rating from the Department of Labour, so we are doing our job, we just didn't get the financial processes right. What we have done in terms of meeting the requirements of the NSDS indicate that we have performed," he stresses.

Obstacles removed

As for the issues raised by the AG, Mopaki believes the authority has dealt with these appropriately.

"Most of our issues related to our CFO. The person we hired made some basic accounting errors and we parted ways with this person. The acting CFO left when we appointed an outside person to the permanent position because the person was disgruntled - there is nothing I can do about that. So yes, we had some staffing issues."

Mopaki says ISETT SETA also had to "let go" of some managers in its education, training and qualification division because they were "simply not doing their job".

As for its remuneration policy, Mopaki is adamant the payment of bonuses to staff was fair and reasonable.

"The CEO's bonus is split; 80% is based on performance in line with NSDS, 20% is based on financial performance. The CEO forfeited the 20% because of the disclaimer. The CFO has a similar split, except the 80% is based on financial performance and 20% on NSDS performance. The CFO forfeited the 80% portion of the bonus. As for the rest of the staff, bonuses were paid [based] on their performance," he explains.

In terms of monitoring, the authority says it is putting in a system that will be functional in the new financial year.

"I must add that the committee members were requested to submit written questions to us as the meeting was strapped for time. We have not received any questions. That must mean they are satisfied with us," he concludes.