SETA corruption blocks opportunities for youth to participate in the economy.
The Organisation Undoing Tax Abuse (OUTA) believes that if Government is serious about creating jobs for our youth, it needs to address the corruption in the Sector Education and Training Authorities (SETAs).
In the SoNA, President Ramaphosa said that agreements between organised labour, business, community and government hoped to create 275 000 direct jobs, in addition to those expected to be routinely created.
He also said the new Youth Employment Service would place unemployed youth in paid internships in companies across the economy.
“The President’s idea is noble, however, its practical application is limited by the corruption-driven failure of the SETAs to fulfil their mandate,” says Dominique Msibi, OUTA’s Portfolio Manager for Special Projects.
“Mr President, OUTA advocates that your higher education priority should be to address the corruption at the SETAs for them to be run and governed effectively,” says Msibi.
“The SETAs are not working. They are paralysed by deep-seated corruption. Students are not paid their stipends, some service providers do not provide the training they are paid to deliver, while some are not paid for their services so stop providing training.”
The SETAs are intended to provide crucial support for young inexperienced people to get enough employment and basic skills to become employable. They are funded through compulsory levies from business, which are meant to fund training and stipends for young job-market entrants. During 2018/19, the SETAs received about R17bn from these levies.
In July 2018, OUTA reported how the Services SETA padded expenses