The Department of Higher Education has written to the board of directors at the Construction Education and Training Authority (Ceta) demanding answers on allegations of poor governance and abuse of power.
Sunday World received a string of allegations from insiders at the Ceta, alleging that in February, the board issued a request for proposal to appoint a service provider to investigate the claims.
Among the allegations is that Nexus SAB&T was appointed to investigate the CEO and other executives without following the procurement policy.
It is further alleged that grievances against board members who are alleged to have been seen screaming and “undermining” members of the executive have been
ignored, thus creating an environment of mistrust.
The board is alleged to have interfered with Ceta’s operations by overturning an executive decision to suspend the organisation’s CFO.
Sunday World understands that since January, Ceta board members have held a total of nine meetings, when they are only supposed to meet once a quarter
“The board allegedly also signed off performance bonuses for employees, some of whom did not meet the basic requirements for the perk,” said the department.
Suspended supply chain management head Tumiso Mphuthi told Sunday World that the board members at Ceta were “not acting in the best interests of the organisation”.
Newly appointed Minister of Higher Education Nobuhle Nkabane is demanding answers from the Ceta board and the accounting authority.
“All allegations of poor governance and financial mismanagement at all entities are taken seriously. Under current circumstances at the CETA, where allegations of poor governance and financial mismanagement are levelled against the entity, Section 14A(1) of the Act empowers the Minister to issue a written instruction directing the entity to provide a comprehensive response addressing all the allegations raised.
“Accordingly, on receipt of the allegations pointing to poor state of governance and financial mismanagement at the CETA, the Minister has written an instruction letter as empowered by the relevant provisions of the Act cited above. In her letter, the Minister is instructing the Accounting Authority to:
• Submit a comprehensive report addressing the veracity of allegations raised.
• Submit an action plan / turnaround strategy with timeframes indicating how all allegations raised are addressed to ensure that the alleged governance shortfall including financial mismanagement are resolved,” said Nkabane in her response to questions.
Nkabane added: “Through the Minister’s instruction letter, the Accounting Authority has been directed to respond within 21 days after receipt of the ministerial instruction. Furthermore, the Accounting Authority has been directed to come and present the response to the Minister to enable her to assess the merits of allegations and decide about the next course of action based on the merits of the information presented.”
“The act empowers the minister to issue a written instruction directing the entity to provide a comprehensive response addressing all the allegations raised,” said Nkabane.
The Ceta board of directors has defended its actions.
“The appointment of SAB&T to conduct an investigation was handled by the board due to the sensitivity and high-level nature of the investigation,” said Ceta executive manager of strategic support Mabo Thobela.
Thobela added that all grievances by Executives have been taken seriously, “and the board continues to apply a systematic approach in dealing with all grievances brought to its attention”.
She said the decision on the payment of bonuses “was compliant with the performance management and remuneration policies of the Ceta”.
