The National Skills Fund (NSF) has defended its handling of stipend payments to hundreds of engineering trainees at Denel, arguing that administrative hurdles on Denel’s side, rather than a lack of funding, were responsible for months of delays that left learners struggling with accommodation and transport costs.
The clarification follows a Sunday World investigation into the plight of 758 trainees enrolled under a rescue programme implemented through the Denel Technical Academy (DTA).
Several learners told Sunday World they had received only R300 on Friday despite apprentices qualifying for monthly stipends of R3 000 and Work Integrated Learning (WIL) participants qualifying for R6 000. Others reported facing eviction threats after accommodation payments allegedly failed to reach landlords.
READ: Denel trainees suffer as incompetence delays stipends for months
Treasury and banking issues delayed transfer
Responding after publication deadline, NSF spokesperson Lebohang Somo said the Fund had already secured the money but was unable to transfer it due to technical and administrative challenges.
According to Somo, the delays stemmed from a government Basic Accounting System (BAS) upgrade as well as issues relating to Denel’s banking details on National Treasury’s systems.
“Subsequent to BAS system upgrade and the correction of the Denel bank account on the National Treasury system, the NSF transferred the funds successfully on August 7 2026, which reflected in Denel’s project account on August 12 2026,” Somo said.
The transfer amounted to R11.58-million.
Denel acknowledges administrative role
The NSF’s explanation aligns with admissions previously made by Denel, which acknowledged that administrative processes on its side contributed to the delay.
Denel said the project’s account had not yet been registered on National Treasury’s Central Supplier Database (CSD), preventing payment from being processed.
“The delay in registration resulted from administrative processes that Denel had to undertake,” the state-owned defence company said.
The NSF maintained that the R11.58 million allocation covered stipend payments for April and July and that both months had effectively been paid.
However, it acknowledged that payments for 76 learners for July remain under reconciliation and verification, meaning about 10% of participants are still awaiting final processing.
May and June stipends still under review
While the Fund says April and July payments have been addressed, uncertainty remains over stipends for May and June.
The NSF has not yet confirmed whether learners will be paid for those two months, stating that no teaching and learning activities took place during that period following the termination of its agreement with the programme’s previous implementing partner.
The Fund said stipends are linked to attendance and participation, and the matter is currently under legal review.
The position places learners in a difficult situation because the NSF previously acknowledged that delayed stipends had contributed to transport challenges that prevented some trainees from attending classes.
Although the Fund said the May and June issue has been prioritised, it has not provided a timeline for a final decision.
Hundreds of learners affected
According to the NSF, the rescue intervention was approved for 761 learners, comprising 557 apprentices and 204 WIL participants.
Of those, 758 ultimately signed learner contracts and attendance registers and remain actively enrolled in the programme.
The trainees are pursuing qualifications in various technical fields, including aircraft mechanics, aircraft welding, electrical work, fitting and turning, mechanical fitting and related trades.
WIL participants are expected to complete their programmes in March 2027, while apprentice training is scheduled to continue until March 2028.
NSF defends Denel partnership
Despite the payment controversy, the NSF expressed confidence in Denel’s management of the programme and defended its decision to appoint the organisation as the rescue partner.
“There are currently no concerns regarding Denel’s administration of the project, as this is a rescue project,” Somo said.
The Fund praised Denel for making its facilities available to trainees and said both organisations were working closely to stabilise the programme and ensure its long-term success.
Learners still facing uncertainty
For many trainees, however, the rescue initiative has yet to deliver the stability they were promised.
Having already endured uncertainty and hardship under the previous implementing partner, learners now find themselves confronting fresh challenges linked to stipend delays, transport difficulties and accommodation concerns.
While the NSF and Denel insist progress is being made, hundreds of aspiring artisans remain in limbo as they wait for clarity on outstanding payments and the future of the programme.
- The National Skills Fund (NSF) stated that delays in stipend payments to 758 Denel engineering trainees were due to administrative and banking issues on Denel's side, not a lack of funding.
- NSF transferred R11.58 million on August 7, 2026, covering stipends for April and July, but payments for 76 learners for July are still being reconciled.
- May and June stipends remain under review because no teaching activities occurred after the termination of the previous implementing partner's agreement, and the legal status is being examined.
- Denel admitted that delays were caused by its failure to register the project's account on the National Treasury's Central Supplier Database, which prevented timely payments.
- The programme includes 758 active learners pursuing various technical qualifications, with apprentices finishing by March 2028 and Work Integrated Learning participants by March 2027.
Several learners told
READ: Denel trainees suffer as incompetence delays stipends for months
"Subsequent to BAS system upgrade and the correction of the Denel bank account on the National Treasury system, the NSF transferred the funds successfully on August 7 2026, which reflected in Denel's project account on August 12 2026," Somo said.
Denel said the project's account had not yet been registered on National Treasury's Central Supplier Database (CSD), preventing payment from being processed.
"
However, it acknowledged that payments for 76 learners for July remain under reconciliation and verification, meaning about 10% of participants are still awaiting final processing.
While the
Of those, 758 ultimately signed learner contracts and attendance registers and remain actively enrolled in the programme.
WIL participants are expected to complete their programmes in March 2027, while apprentice training is scheduled to continue until March 2028.
Despite the payment controversy, the NSF expressed confidence in Denel's management of the programme and defended its decision to appoint the organisation as the rescue partner.
"
For many trainees, however, the rescue initiative has yet to deliver the stability they were promised.
While the NSF and Denel insist progress is being made, hundreds of aspiring artisans remain in limbo as they wait for clarity on outstanding payments and the future of the programme.
