Civil society group Outa has called for a full forensic investigation at the Insurance Sector Education and Training Authority (Inseta) after its CEO Gugu Mkhize was suspended over governance concerns.
Outa CEO Wayne Duvenage said on Tuesday Mkhize had been suspended after years of concerns that Outa raised about governance, procurement practices, transparency and accountability in the organisation.
He said Mkhize’s suspension should mark the beginning of efforts to uncover the full extent of any maladministration or wrongdoing at Inseta, which manages billions of rand in skills development levy funds for the insurance sector.
Duvenage said five consecutive qualified audit outcomes raised serious questions about governance and financial management at Inseta and stressed it needed to manage funds with integrity, transparency and accountability.
“For years, serious questions have been raised about governance, procurement and transparency at Inseta. A suspension is not accountability. It is the start of a process. South Africans now need assurance that these concerns will be investigated thoroughly, independently and without fear or favour,” Duvenage said.
Outa recently instituted legal proceedings against higher education and training minister Buti Manamela to review and set aside his decision to reappoint Mkhize to the Inseta board for a further five-year term, from 2025 to 2030.
South Africans deserve confidence that public institutions are governed in the public interest and not for the benefit of a few
— Wayne Duvenage, Outa CEO
“Outa contends that the appointment process was procedurally flawed and failed to adequately consider concerns relating to governance and accountability. The organisation has also raised concerns about Inseta’s audit outcomes,” Duvenhage said.
“During Mkhize’s tenure as the accounting authority, Inseta received qualified audit outcomes for five consecutive years, raising serious concerns about governance, financial controls and oversight in the institution.
“Over several years, Outa submitted numerous requests for information to Inseta in terms of the Promotion of Access to Information Act, seeking records related to governance and procurement matters. Despite following the prescribed processes, the requested information was not provided.
“After escalating the matter to the Information Regulator, Outa continues to pursue all available avenues to obtain access to the information and remains committed to ensuring transparency and accountability at Inseta.”
Duvenage said transparency was not optional in publicly funded institutions, and when access to information was repeatedly denied and concerns unanswered, public confidence was undermined.
“Accountability requires openness, particularly where public funds are involved. The organisation believes investigators should engage all relevant stakeholders and examine concerns that have been raised over several years regarding procurement processes, governance failures, and financial management practices at Inseta.
“A credible investigation must follow the evidence wherever it leads. It should establish whether there was irregular or wasteful expenditure, whether procurement processes complied with the law, whether conflicts of interest existed and whether any provisions of the Public Finance Management Act were breached.”
If misconduct is identified, appropriate disciplinary, civil and criminal action must follow.
“South Africans deserve confidence that public institutions are governed in the public interest and not for the benefit of a few.”
The Inseta board said in a statement it had placed Mkhize on precautionary suspension pending the outcome of an internal process. “The decision was taken in the interest of good governance and to allow due process to unfold without interference. The suspension is precautionary in nature and does not constitute a finding of wrongdoing.
“Business operations and service delivery will continue uninterrupted during this period, under the leadership of Zanele Malaza as the acting CEO and the oversight of the board.
“Inseta remains committed to transparency, accountability and maintaining the integrity of the organisation’s operations and governance processes,” the board said.
Update: June 9 2026
This article has been updated with comment from the Inseta board
Business Day
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.