Higher Education Department going insolvent
4 October 2017
The Auditor-General’s (AG) 2016-17 report on Higher Education and Training contains a range of ominous warnings which need urgent attention. The report found that:
- The Department is carrying substantial liabilities which have significantly increased this year. The AG says that the Department is in “a negative overdraft and negative cash flow” position. Next year the Department might well be unable to continue sustainably.
- Irregular expenditure reached an unprecedented R929 million in the 2016/17 year, 94% of which has not been investigated yet. Most of this irregular expenditure occurs in the SETAs. One SETA – EWSETA - misspent no less than R290m. and the National Skills Fund misspent R170m.
- 24 of the 50 TVET Colleges received a qualified, adverse or disclaimed audit opinion.