A corporate governance framework for Sector Education and Training Authorities (SETAs)

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Peer-Reviewed Research


The establishment of Sector Education and Training Authorities (SETAs) was initially seen as a lifeline for a country plagued by massive inequalities in income and skills provision. The continuous supply of skilled professionals and core skills remain the foundation for a competitive emerging economy and young democracy such as South Africa. SETAs are established for a five year period and are aligned to the financial year of government. The SETAs attracted much media attention as a result of poor service delivery primarily attributed to poor corporate governance. Despite the many positive contributions by SETAs, they remain the most criticised entities in post-democratic South Africa. Corporate governance is important for managers in organs of state (more specifi cally SETAs) policy makers in the field of public administration and politicians. The board of a SETA is ultimately accountable for the implementation of corporate governance. The article assesses the role of the board, accounting offi cer and audit committee among others and the legislative framework supporting the implementation of good governance. The analyses show an unstable framework of operation in SETAs and this is further complicated by the lack of skilled human resources specifi cally in financial management