SETA controversy shows why board appointments cannot be a tick-box exercise

Reported findings by the AGSA of irregularities in the appointment of Accounting Authorities at 15 SETAs raise serious concerns about the integrity of public-sector board appointment processes, says the Institute of Directors in South Africa (IoDSA).

According to media reports, the auditor-feneral found that appointment processes did not comply with requirements of the Skills Development Act, with deficiencies reportedly including incomplete vetting, unverified qualifications, outstanding or outdated criminal-record checks, and late or missing declarations of interest.

“Good governance starts before a board ever meets,” says IoDSA CEO Parmi Natesan. “Who gets onto a board, whether they are suitably qualified and experienced, whether proper background checks have been performed and whether conflicts have been identified are not procedural niceties. They determine the quality and credibility of the governing body from the outset.”

The Skills Development Act establishes the statutory framework for SETA Accounting Authorities and includes requirements relating to their composition, appointment and eligibility. Compliance is therefore not simply a matter of good practice.

A troubling history

The latest developments are particularly concerning given the recent history of SETA board appointments.

In 2025, Parliament investigated the process followed by the former Higher Education and Training Minister in appointing SETA Accounting Authority chairpersons.

The Portfolio Committee found that the intended independent selection process “did not materialise” and recorded its view that the Minister had “wilfully misled Parliament” about the role of the independent panel.

Importantly, it seems the latest reported AG findings relate to a subsequent appointment process under current Minister, rather than simply revisiting those earlier appointments.

In October 2025, announcing the newly constituted Accounting Authorities, Manamela described their appointment as “a critical milestone in stabilising governance across the skills development sector”.

“The prior events should have sounded a very loud warning about the governance of SETA appointments,” says Natesan. “Once confidence in an appointment process has been damaged, the replacement process needs to be beyond reproach. The fact that serious concerns are now reportedly being raised about the subsequent process is therefore particularly troubling.”

SETA boards matter

SETAs play a central role in South Africa’s skills-development system and direct significant levy-funded resources towards developing skills, supporting learners and meeting the needs of employers and the economy.

“South Africa cannot afford for institutions tasked with addressing one of our greatest socioeconomic challenges – skills development – to be repeatedly distracted by governance concerns,” says Natesan. “The quality of the board ultimately affects the quality of oversight, strategy, accountability and decision-making throughout an organisation.”

King V is clear

The concerns reportedly identified by the AG also go directly to King V.

Principle 5 provides that the composition of a governing body should be balanced in terms of the competencies, diversity and independence necessary for it to discharge its obligations objectively and effectively. Its recommended practices specifically call for thorough background checks before nomination, with qualifications and designations independently verified.

“These requirements exist for a reason,” says Natesan. “A name on a CV and a completed nomination form are not due diligence. Verification needs to happen before appointment and conflicts need to be identified and appropriately managed.”

The IoDSA has consistently advocated for public-sector board appointments to be transparent, rigorous and competency-based, supported by appropriate due diligence.

“The Skills Development Act provides the legal framework for these appointments, while King V articulates the governance discipline that should underpin them,” concludes Natesan. “The lesson from both the 2025 controversy and the latest reported findings is simple: governance cannot begin after appointments have been made. Good governance begins with how we choose the people who will govern.”

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