Seta CEO in MPs' firing line

The CEO of the Public Services Seta has failed to explain to parliament why the authority paid consultants almost R1-million for an investigation that could have been undertaken by a government institution at a cheaper price.

Appearing before the standing committee on public accounts yesterday, Shamira Huluman sparked the fury of MPs when she said the authority paid auditing firm PricewaterhouseCoopers more than R800000 in 2010 for an investigation that failed to crack financial irregularities at the Seta, when the Special Investigating Unit could have done the work at a fraction of the price.

PSeta was established to lead the implementation of the national skills development strategy in the civil service, but its financial books have been a shambles.

It was put under administration in 2010 and slapped with a disclaimer - the worst audit opinion - by the auditor-general for the 2010-2011 financial year because of a litany of questionable transactions.

ANC MP Roy Ainsely said it did not make financial sense for Huluman to hire consultants who did not have powers to subpoena witnesses in an investigation related to the mismanagement of public funds.

"Eight hundred thousand rand for what? To tell you at the end of the day that 'sorry, we have no power to subpoena'? You should have known that in advance . it's highly irregular," said Ainsely.

Huluman said the decision had been taken in 2007 by her predecessors and admitted that it was ill-advised.

Kenny Gove nde r, the deputy director-general of the Department of Public Service, told the committee that an official was jailed after being convicted of fraud involving more than R10.8-million. But he could not explain why action had not been taken against two officials who were transferred from the PSeta to his department and were implicated in allegations of fraud involving R900000.

He said he was not in a position to provide clarity because he did not have the facts at hand, drawing an angry response from committee chairman Themba Godi.

"If you come here without the facts then what's the point of being here if you don't have the facts, the details of something very directly related to the Seta that we are engaging here today."

The Special Investigating Unit is investigating corruption in the PSeta and many other similar institutions following a proclamation by President Jacob Zuma.

Higher Education and Training Minister Blade Nzimande, under whose department the Setas fall, said the public training bodies were not giving government value for money.

Nzimande said those managing them were using them as get-rich-quick schemes.