The current model of Sector Education Training Authorities has to be overhauled as it has created a private network of self-enrichment and possible corruption in the R8-billion sector.

This is according to Higher Education and Training Minister Blade Nzimande, who yesterday presented a departmental budget vote that contains his grand plan to completely overhaul the operation of the Setas to bring them in line with the country's skills development plans.

"The Setas are just about the only institutions that accredit people and also give them tenders to provide training. I mean you are creating, really, a haven for corruption.

"We want to change that because . that's real patronage, that's where you can actually have patronage because you simply accredit your friends and then give them the millions of rands to go and do training," he said.

He said about R7-billion of the Setas' R8-billion budget was being channelled to private training institutions that often develop inadequate short courses at high cost. In one instance, he said, one of the Setas wanted to pay R45000 a head to a private institution to "train" domestic workers over a 19-day period.

Such wastage, he said, will have to be stopped.

"We want to know, where do they spend their money? Who are their private providers and how much are they using the public system?" asked Nzimande.

In terms of the overhaul, Setas would have a uniform constitution and the size of their boards would be reduced to 15 members each. Their work will be aligned to programmes offered by training colleges and other higher education institutions.

But Nzimande's appointment of new chairmen and boards for the Setas has met resistance. The Services Seta recently won a Labour Court victory that temporarily prevents the minister from removing its chairman and replacing him with ANC Western Cape activist Sihle Moon.

Today, Nzimande will lodge an application to appeal.

Meanwhile, Nzimande announced that allocations to the National Students Financial Aid Scheme would double to R5.4-billion and that the financial aid scheme would no longer be allowed to blacklist students who are unable to repay their loans.