ISETT SETA 'turning corner'

Johannesburg, 11 Sept 2007

The Information Systems, Electronics and Telecommunications Technologies Sector Education and Training Authority (ISETT SETA) is on its way up, says CEO Oupa Mopaki.

The SETA was one of several training authorities to be called before Parliament's Portfolio Committee on Labour to explain its ongoing troubles.

In June, ITWeb reported ISETT SETA could face withdrawal of the committee's support.

At the time, ITWeb quoted ANC member of Parliament Eric Mtshali: "These issues raise questions as to whether the committee should be trying to help the [ISETT] SETA continue or whether it should be closed down."

Steadfast defence

However, Mopaki has repeatedly noted that the committee's concerns were based on its financial management alone and not its key performance.

"The committee has never had cause for concern regarding our delivery on our mandate from the Department of Labour. Unfortunately, we had some troubles in our financial department, with employees not being up to date on the requirements of the Public Finance Management Act (PFMA)," he reiterates.

Failure to adhere to the PFMA led to the organisation receiving qualified audits in its 2004/05 and 2005/06 financial years.

Although ISETT SETA received an unqualified audit in its 2003/04 year, the AG noted three areas that required "emphasis of matter". These included a non-balancing bank reconciliation, its materiality framework and investment policy.

In all three financial years, the SETA performed well against most of the objectives set by the Department of Labour.

On the up

When ISETT SETA releases its annual report for the 2006/07 financial year, it will include an unqualified audit, says Mopaki.

This recognition from the AG will hopefully turn detractors' attention to its operational performance, he adds.

"I'm not saying that we have not had problems, because we have. However, I do want to strongly point out that our performance against our mandated objectives has been very good. This year, the Department of Labour gave us a 120% score. If you want to criticise us, then look at our total performance," he says.

Democratic Alliance labour spokesperson Anchen Dreyer says she has yet to see the AG's opinion.

"If the ISETT SETA did indeed receive an unqualified audit report, it would mean it is recovering from its previous ills. However, it does not mean the SETA is out of trouble completely, as there could still be a host of 'emphasis of matter', as the auditor-general calls it. But this development is a sign that the SETA is moving in the right direction," she comments.

Restructuring

Mopaki says the changes introduced in the financial department to bring it in line with expectations will most likely be replicated throughout the organisation.

"I am very pleased that we have overcome the problems around our financials. Now we need to focus on ensuring the rest of the business is performing optimally. Moving forward, we need to address the efficiency and effectiveness of our processes and see what improvements can be made. We are turning the corner," he explains.

However, critics seeking a "radical" reduction in the time required to approve proposals may be disappointed.

"We can't lose sight of the fact that we are dealing with taxpayers' money. We must make sure the funding we allocate is used for the proper outcomes. Efficiency cannot and must not mean lower levels of oversight."