Manamela Demands Answers on Seta’s R15m Lease Scandal
Higher Education Deputy Minister Buti Manamela has called for immediate accountability following revelations that a Sector Education and Training Authority (Seta) spent over R15 million on an unoccupied office building.
Manamela Demands Answers on Seta’s R15m Lease Scandal
Higher Education Deputy Minister Buti Manamela has called for immediate accountability following revelations that a Sector Education and Training Authority (Seta) spent over R15 million on an unoccupied office building.
Key Points
- A Seta has reportedly been paying R600,000 per month in rent for a building that has never been occupied by staff.
- The lease agreement has been active since 2024, leading to a total expenditure exceeding R15 million.
- Deputy Minister Buti Manamela is demanding a full explanation regarding the procurement process and the failure to utilize the space.
- The scandal has raised significant concerns regarding the mismanagement of public funds within entities overseen by the Department of Higher Education and Training.
Oversight and Financial Mismanagement
The Department of Higher Education and Training is facing intense scrutiny following reports of a "ghost lease" involving one of its Sector Education and Training Authorities (Setas). Deputy Minister Buti Manamela has formally demanded answers regarding the lease of a commercial building that has cost taxpayers roughly R600,000 per month since 2024.
Despite the continuous monthly payments, the building has remained empty for over a year. Reports indicate that employees have never moved into the premises, yet the financial obligations of the lease have been met consistently, accumulating a total loss of over R15 million in fruitless and wasteful expenditure.
Government Response
The revelation has sparked outrage over the perceived lack of internal controls and oversight within the Seta. Deputy Minister Manamela emphasized the need for transparency, questioning how such a contract was approved and why payments continued while the facility sat idle.
The investigation aims to determine who authorized the lease agreement and why the transition to the new offices was never completed. This incident adds to ongoing concerns regarding the financial governance of Setas, which are primarily funded through skills development levies intended to bolster South Africa's workforce.
Implications for the Department
The R15 million scandal is being viewed as a significant blow to the Department of Higher Education’s reputation, particularly at a time when funding for student services and vocational training remains under pressure. Critics argue that the R600,000 monthly rental could have been better utilized for student bursaries or skills programs.
As the inquiry proceeds, there are mounting calls for the recovery of the funds and for disciplinary action against the officials responsible for the oversight. The Deputy Minister has signaled that "heads must roll" if evidence of negligence or corruption is uncovered during the probe.