The National Skills Authority’s (NSA) characterisation of the Insurance Sector Education and Training Authority’s (Inseta) responses as “condescending” underscores the increasingly strained correspondence between the regulator and the seta’s accounting authority as a governance investigation progresses.
The remark appears in a letter in which the NSA states it had sought “to engage in an amicable manner” but found that “the seta’s responses were condescending towards the NSA”.
The language used by the Inseta board’s legal team from Cliffe Dekker Hofmeyr, however, does not seem be condescending. It insists that the accounting authority respects the NSA’s legal power and plans to cooperate fully. It says they are asking for more time and information before the interviews.
The exchange forms part of an inquiry into alleged irregular conduct and possible governance breaches involving Inseta chairperson Refilwe Matenche and the accounting authority.
The NSA says it intervened after learning of the board’s decision to suspend the CEO, Gugu Mkhize.
The authority maintains that it is empowered, under section 5 of the Skills Development Act, to investigate matters arising from the application of the act and to inspect records where necessary.
As part of the investigation, the NSA has asked the board for a wide range of documents, including its constitution, meeting agendas and minutes; papers about the media briefing held by the accounting authority; information on board pay; details about the
Insurance Sector Student Fund bursary project; the Graduates Institute of Financial Sciences lawsuit; the suggestion to reappoint the chief executive; legal costs; and emails with Higher Education Minister Buti Manamela about Mkhize’s suspension.
The NSA has also requested meetings with the chief financial officer, the head of human resources, the Insurance Sector Student Fund project manager and the senior official responsible for quality assurance in relation to the Graduates Institute of Financial Sciences matter.
The board has not disputed the NSA’s legal authority to conduct the investigation. Instead, it argues that the documentary record comprises hundreds of pages spanning governance, financial, operational and disciplinary matters.
“The documentation … is voluminous,” Cliffe Dekker Hofmeyer wrote, adding that meaningful preparation required board members and their legal representatives to review the material before being interviewed.
The documents show the investigation was triggered after the NSA was informed that the accounting authority had resolved to place the CEO on precautionary suspension.
It subsequently cited media reports and governance concerns as reasons for seeking an urgent meeting with the seta, saying the issues had the potential to damage the organisation’s reputation and create governance instability.
The documents further show that the NSA’s inquiry did not arise from a single complaint. The regulator says the information before it was drawn from several sources, including correspondence submitted to the Department of Higher Education and Training, internal governance documents, the notice of intention to suspend the CEO and a staff memorandum raising concerns about the conduct of the accounting authority.
- The National Skills Authority (NSA) condemned the Insurance Sector Education and Training Authority’s (Inseta) responses as “condescending” amid an ongoing governance investigation.
- Inseta’s legal team denies condescension, affirming respect for the NSA’s authority and requesting more time and information before interviews.
- The investigation involves alleged governance breaches concerning Inseta chairperson Refilwe Matenche and the CEO’s suspension.
- The NSA has requested extensive documents and meetings with key staff to probe the issues, citing concerns about potential reputational damage and governance instability.
- The inquiry is based on multiple sources, including media reports, internal documents, and staff concerns, not just a single complaint.
