THE National Skills Authority is considering a recommendation that the construction education and training authority (Ceta) be placed under administration. The authority had begun to look closely at Ceta after the labour department’s performance management unit recommended it do so, Sam Morotoba, executive officer of the authority, said.Ceta has been wracked with financial problems since 2005, when it was discovered that employers and skills training providers had defrauded it of about R150m.
Ceta chairman Narius Moloto said yesterday a forensic team was steadily recovering the lost funds, and there was no basis to place the training body under administration. Ceta management had submitted documentation to prove it was on the road to financial recovery after a meeting with the authority last month, Moloto said.Ceta was R63,9m in credit by the third quarter of 2006-07 financial year.But Morotoba said the authority’s concerns for Ceta’s future were not only about its financial health. “Financial management is one thing, but there’s also meeting (statutory) targets and governance,” he said.“We will look at corrective measures they’ve put in place and only if the authority thinks these won’t help will we put Ceta under administration.” SA is crying out for construction and engineering skills amid a first industry boom in 30 years, and instability in Ceta, which is funded by a tax of 1% of payroll, has already caused problems in construction training.Last year, Ceta’s problems resulted in the Master Builders’ Association of SA investigating a scheme for its members to train construction workers without the authority’s help. - Caretaker for building Seta
Ceta chairman Narius Moloto said yesterday a forensic team was steadily recovering the lost funds, and there was no basis to place the training body under administration. Ceta management had submitted documentation to prove it was on the road to financial recovery after a meeting with the authority last month, Moloto said.Ceta was R63,9m in credit by the third quarter of 2006-07 financial year.But Morotoba said the authority’s concerns for Ceta’s future were not only about its financial health. “Financial management is one thing, but there’s also meeting (statutory) targets and governance,” he said.“We will look at corrective measures they’ve put in place and only if the authority thinks these won’t help will we put Ceta under administration.” SA is crying out for construction and engineering skills amid a first industry boom in 30 years, and instability in Ceta, which is funded by a tax of 1% of payroll, has already caused problems in construction training.Last year, Ceta’s problems resulted in the Master Builders’ Association of SA investigating a scheme for its members to train construction workers without the authority’s help. - Caretaker for building Seta
How long before you realize that R150 million is missing out of your company? Or is it OK if it is not your funds?