A multimillion-rand head office lease at the Education, Training and Development (ETD) Seta, now under forensic investigation and linked to the precautionary suspension of a senior executive, was formally approved and signed by the entity’s former CEO, internal procurement documents show.
The records indicate that while the procurement process was handled through internal bid structures, the final decision to award the contract rested with and was exercised by the then chief executive, Nombulelo Nxesi.
The probe is looking into the lease agreement valued at about R50.5-million over a multi-year period from 2024 to 2030.
The paper trail shows the transaction moved from committee recommendation to executive approval, ending with Nxesi’s signature on a deal worth over R50-million.
The starting point is an “internal submission” from the bid adjudication committee (BAC) to the CEO, dated April 23, 2024, under the title “BAC recommendation”. Its purpose is explicit: “to present the bid adjudication committee’s recommendation to the CEO” for the lease.
That submission sets out the scope of the deal, stating the Seta sought “to appoint a service provider to lease office space for its head office staff from 1 July 2024 till the end of 31 March 2030”.
It further specifies that the site had to be in “Johannesburg CBD or Midrand or Bedfordview or Parktown or Braamfontein” and within a “1–3 kilometre radius” of public transport.
It also imposed strict technical requirements, including “ninety-seven basement and/or covered parking bays” and “fifteen overflow covered parking”, bringing the total to “one hundred and twelve covered parking bays”.
The documents show seven bidders responded, but only three “complied with the ‘administration compliance evaluation requirements and proceeded to site evaluation’.”
The BAC states it “has adjudicated the transaction and has satisfied themselves of the evaluation outcome”, adding that “all issues raised by the BAC were corrected by the bid evaluation committee (BEC)”.
However, the same submission records internal concerns. Among those were “security and environment”, where the location posed “significant risks to the safety of employees”, alongside concerns about building structure, office configuration and long-term suitability.
The committee went further, proposing that the CEO, together with internal structures, should “conduct a site visit to assess at first hand the premises and the concerns raised to ensure that all the factors stipulated herein are thoroughly considered”.
The recommendation was marked “Recommended: Yes” and signed off by the BAC chairperson on April 24, 2024.
The next step shifted the locus of accountability.
The approval page is marked “Approved: Yes” and carries Nxesi’s name as chief executive officer, with her signature dated 25/04/24.
Beneath it, a handwritten note records her direct engagement: “I will have to go and view the site” and “also opportunity to take final decision.”
The final award document confirms that decision and states: “This letter serves to inform you that your organisation has been awarded the above-mentioned tender for the ETDP Seta.”
It sets the total budget at R50 500 830 and notes that “the CEO of the ETDP Seta should sign the service level agreement”.
The letter is signed by Nxesi and dated April 26, 2024.
A separate bid evaluation committee record dated April 17, 2024, shows that the deal was processed through the BAC, chaired by the chief financial officer, Nokukhanya Mafahla, who has since been placed on precautionary suspension as part of an ongoing investigation linked to concerns about the integrity of the investigative process, including cooperation and access to information. No findings have been made.
However, the paper trail draws a clear distinction between stages of the decision.
The BAC documentation reflects the recommendation phase. The approval and award documents show that the authority to conclude the transaction was exercised at the executive level.
Taken together, the records do not show a process ending at the committee level. They show one that moved from evaluation to adjudication, raised internal concerns, and then proceeded to executive approval.
Documents show the decision-making chain did not end in the committee room but with a signature.
Nxesi the could not be reached for comment and Mafahla declined to comment.
- A R50.5-million multi-year lease for the ETD Seta head office was formally approved and signed by former CEO Nombulelo Nxesi, as shown by internal procurement documents.
- The lease covers office space from July 2024 to March 2030, located within specific Johannesburg areas and meeting strict technical requirements including 112 covered parking bays.
- The bid adjudication committee (BAC) recommended the lease despite internal concerns over security risks, building structure, and long-term suitability.
- Nxesi personally reviewed the site and took the final decision to approve the lease, signing the contract documents in late April 2024.
- The CFO and BAC chairperson Nokukhanya Mafahla, now under precautionary suspension linked to the investigation, handled earlier stages, but final approval was made at executive level; both Nxesi and Mafahla declined to comment.
