Amended Skills Development Act

(1)           A SETA is financed from –

(a) 80 per cent of the skills development levies, interest and penalties collected in respect of the SETA, as allocated in terms of sections 8(3)(b) and 9(b) of the Skills Development Levies Act;

(b) moneys paid to it from the National Skills Fund;

(c)  grants, donations and bequests made to it;

(d) income earned on surplus moneys deposited or invested;

(e) income earned on services rendered in the prescribed manner; and

(f)   money received from any other source.

(2)           The money received by a SETA must be paid into a banking account at any registered bank and may be invested only in-

(a) savings accounts, permanent shares or fixed deposits in any registered bank or other financial institution;

(b) internal registered stock contemplated in section 21 (1) of the Exchequer Act, 1975 (Act No. 66 of 1975); and

(c)  any other manner approved by the Minister.

(3)           The moneys received by a SETA may be used only in the prescribed manner and in accordance with any prescribed standards and criteria to –

(a) fund the performance of its functions; and

(b) pay for its administration within the prescribed limit.

(3A)       For the purposes of subsection (3)(b), the Minister –

(a) must prescribe the total expenditure that a SETA may make on its administration; and

(b) may prescribe –

(i)         the amount that a SETA may spend on any aspect of its administration;

(ii)        salary bands within which categories of employees must be remunerated;

(iii)      the conditions under which employees may receive performance-related payments and the maximum payment that may be made to and employee in this regard;

(iv)      the allowances that may be paid to members and office-bearers of SETAs or any other persons who serve on a committee or other structure of a SETA.

(3B)       For the purposes of subsections (3) and (3A), the administration of a SETA includes any aspect of the administration or management of a SETA, irrespective of who performs it.

(4)           A SETA must be managed in accordance with the Public Finance Management Act.

(5)           Every SETA must –

(a) prepare annual budgets, annual reports and financial statements in accordance with Chapter 6 of the Public Finance Management Act; and

(b) furnish the Director-General with copies of all budgets, reports and statements contemplated in paragraph (a) and any other information that it is required to submit in terms of the Public Finance Management Act.

(6)           The Auditor-General must –

(a) audit the accounts, financial statements and financial management of a SETA; and

(b) report on that audit to the SETA and to the Minister and in that report express an opinion as to whether the SETA has complied with the provisions of this Act, and its constitution, relating to financial matters.

14A.     Minister may issue written instructions to SETAs

(1)           The Minister may issue a written instruction to a SETA if –

(a) the SETA is not performing any of its functions or not complying with its service level agreement;

(b) the SETA is not managing its finances in accordance with this Act;

(c)  the SETA’s membership is not representative of the constituencies contemplated in section 11; or

(d) the SETA has not prepared and implemented an employment equity plan as contemplated in section 20 of the Employment Equity Act, 1998 (Act No.55 of 1998).

(2)           An instruction issued under subsection (1) must set out –

(a) the reason for issuing the instruction;

(b) any provision of the Act that the SETA has not complied with; and

(c)  the steps that the SETA is required to take and the period within which such steps must be taken.

(3)           At the request of a SETA, the Minister may –

(a) extend the period for complying with an instruction; or

(b) revise the terms of the instruction.

(4)           If a SETA has not complied with an instruction issued in terms of this section within the specified period, the Minister may –

(a) direct the Director-General to withhold all or part of the allocation to the SETA in terms of section 8(3)(b) of the Skills Development Levies Act for such period and on such conditions as the Director-General may determine;

(b) invoke section 15 without further notice to the SETA;

(c)  order an investigation into the management and administration of the SETA; or

(d) take any other steps necessary to ensure that the SETA performs its functions or manages its finances in accordance with this Act.

(5)           If a SETA has unreasonably failed to institute disciplinary proceedings for misconduct against any employee of the SETA, the Minister may direct the SETA to institute disciplinary proceedings against that employee.