About 800 students enrolled in two separate state-funded skills development programmes have been left in limbo amid allegations of mismanagement and maladministration.
About 470 learners are enrolled in a 16-month project management occupational certificate programme at South West Gauteng College (SWGC) campuses in Soweto, Roodepoort and Randburg.
The programme, funded by Services Seta at a cost of R16,000 per student, was intended to equip unemployed young people with skills and practical experience to improve their employability.
But students were instructed to stop attending classes after their monthly stipends of R5,000 were halted for two months without explanation.
The dispute was resolved last week after the Sunday Times sent questions to Services Seta and Cosmopolitan College, the little-known institution responsible for implementing the programme. The outstanding July and August stipends were paid between Thursday and Friday.
Services Seta administrator Lehlogonolo Masoga confirmed that all outstanding stipends had been paid by Friday afternoon and said the programme would continue.
“As per our standard operating procedures, Services Seta issued a legal notice of project rescue on 24 August 2026 demanding that Cosmopolitan College remedy the July 2026 and August 2026 unpaid learner stipends by 27 August 2026, failing which Services Seta will terminate the project,” Masoga said.
He said Services Seta was considering alternatives to ensure students could complete the programme and would pursue legal avenues to recover funds already disbursed but not legitimately expensed.
Masoga said the organisation had conducted project induction and routine monitoring at predetermined intervals to assess compliance with the project implementation plan and quality assurance requirements.
There were so many loopholes that we did not pay attention to because we were desperate. We signed contracts in May but had to wait for a month and a half before the programme started.
— Student
Cosmopolitan College director Malesela Gwangwa promised to respond to questions but had not done so by deadline.
Two students, speaking on condition of anonymity for fear of reprisals, described the programme as a “rushed job”. They alleged that lengthy assessments were completed within a week in September.
“There were so many loopholes that we did not pay attention to because we were desperate,” one female student said. “We signed contracts in May but had to wait for a month and a half before the programme started.”
A male student from the SWGC Randburg campus alleged that Gwangwa told students at a meeting that money intended for their stipends had been used elsewhere. Students were given payment dates that were not honoured, he claimed.
Although students were reportedly told that people who had previously participated in Seta-funded learnerships would be excluded by the system, the Sunday Times established that some participants had taken part in similar programmes before.
SWGC spokesperson Sabelo Tshabalala said the college had entered into a memorandum of understanding with Cosmopolitan College and was only involved primarily in recruiting former learners.
“SWGC’s role was primarily to facilitate access to its former learners and support recruitment processes,” Tshabalala said.
The second programme, involving about 300 students, has been hit by a separate funding crisis.
The learners, placed at the Denel training academy, are part of an aviation programme implemented by FlyFofa and funded by the National Skills Fund (NSF). The initiative was intended to upskill students in artisan and engineering fields, as well as aviation disciplines.
Funding was approved in 2024 for a 31-month programme intended to benefit 390 students. Training included private pilot licence preparation, advanced hour building, drone piloting and cabin crew training.
However, students have not received stipends since June, and some accommodation providers have threatened to evict them because of unpaid rent. Transport disruptions have also affected attendance.
A letter seen by the Sunday Times states that Denel Training Academy could only process student stipend payments once funds had been received in the project account.
The NSF told learners it had experienced technical problems with its basic accounting system, preventing stipend payments from being processed.
“Since 1 July 2026, the NSF has experienced technical challenges with the payment system which have affected the processing of payment,” the fund said.
“Although the NSF successfully initiated the payment on 10 July 2026, the transaction could not be completed due to the persistence of the technical system error.”
The NSF said it was working with the Treasury and the department of higher education and training to resolve the matter.
But it disputed claims that it had disrupted training or abandoned the students. Acting CEO Melissa Erra said the implementing partner, FlyFofa, had decided to halt training this month amid unresolved contractual and funding matters.
“The NSF cannot approve additional financial commitments or variations outside established procedures simply to expedite a decision,” Erra said.
She said such requests had to undergo the required governance and approval processes, adding that the NSF was treating the matter urgently to protect students.
Tensions have risen among students, with some seeking intervention from parliament’s portfolio committee on higher education and training.
In a letter seen by the Sunday Times, students were warned not to march to the NAF or Denel academy over project matters and were instructed to use prescribed communication channels.
They were told to first raise complaints with the relevant service provider, followed by the Denel and NSF project managers, then the NSF regional manager.
“Failure to adhere to the prescribed communication channels will be regarded as non-compliance with the project conditions and may result in appropriate contractual action,” the letter warned.
Students have also written to parliament’s portfolio committee, outlining their grievances and asking for protection against retaliation.
Portfolio committee chairperson Tebogo Letsie described the situation in skills development programmes as deeply concerning and said some programmes were being targeted by people who lacked the capacity to provide proper training.
“People who adjudicate such things are corrupt to the core. They appoint some people who may be close to them but have no capacity to do training,” Letsie said.
He said the committee intended to refer cases of concern to law-enforcement agencies.
Letsie also acknowledged that Setas sometimes contributed to delays by taking too long to confirm students on their systems, creating opportunities for problems during registration.
Education expert Mary Metcalfe said Services Seta had been among the more troubled entities in the skills development system, citing qualified audit opinions, ongoing corruption allegations under investigation and persistent safety concerns.
The two programmes highlight the vulnerability of unemployed young people who rely on state-funded training opportunities to gain qualifications and enter the job market.
While Services Seta has moved to resolve the stipend dispute affecting the project management students, uncertainty remains over the future of the aviation programme, with students facing financial pressure and disruption to their training.
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