DA demands SIU probe into National Skills Fund mismanagement

15 October 2024

Today’s presentation by the National Skills Fund (NSF) has demonstrated that the President can no longer turn a blind eye to the urgent need for an SIU investigation into the NSF. The only investigation that has taken place thus far is the Nexus forensic report, which, while important, lacks the statutory authority needed to fully uncover the scope of irregularities.

The Auditor-General’s findings, which highlighted a lack of internal controls and an inability to account for critical skills development funding, point to severe lapses in governance within the NSF. The qualified audit opinion for 2022/23, as well as the AG’s concerns over the entity’s financial management, further raise questions about the integrity of NSF’s operations. It is especially alarming that the NSF has reported zero irregular, fruitless, wasteful, and unauthorised expenditure, a claim that is highly questionable given the AG’s inability to verify key areas of funding.

The Nexus report revealed a host of concerning findings, including a failure to conduct due diligence in project funding, unverified beneficiary bank accounts, and a lack of oversight on funds once disbursed. While the Hawks are currently investigating, the limitations of the Nexus report – which did not have the authority to summon documents or witnesses – make it clear that a more robust investigation is required.

The President must act now and issue a proclamation authorising the SIU to investigate the National Skills Fund. Only through the SIU’s statutory powers can we get to the bottom of the NSF’s financial mismanagement and ensure accountability. The time for delays is over; the future of skills development and the credibility of public institutions depend on it.

Issued by Desiree van der Walt, DA Deputy Spokesperson on Higher Education, 15 October 2024