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By Thapelo Molefe
The long-standing allegations of corruption and mismanagement at the National Skills Fund (NSF) have finally reached a turning point, with President Cyril Ramaphosa signing a proclamation authorising the Special Investigating Unit (SIU) to probe financial irregularities plaguing the institution.
The investigation, given the green light under Proclamation 253 of 2025, grants the SIU sweeping powers to scrutinise improper conduct by officials and employees of the Department of Higher Education and Training, including the potential misuse of funds earmarked for critical skills development initiatives.
Portfolio Committee on Higher Education chairperson Tebogo Letsie said this week that the proclamation was a “long-overdue” measure to hold perpetrators accountable.
“We welcome this critical step in ensuring accountability and restoring public confidence. If anyone within the value chain has unduly benefited, the law must take its course. These brazen thieves have robbed our youth of the essential skills needed to drive economic growth,” Letsie stated.
The SIU’s investigation will delve into the NSF’s procurement and contracting processes, focusing on training projects, implementing agents and service providers.
Among the flagged entities are Yikhonolakho Woman and Youth Primary Co-operative Limited, Dithipe Development Institute and Ekurhuleni West TVET College.
The probe will assess transactions dating back to 1 January 2013, examining any unauthorised, irregular, fruitless, or wasteful expenditure that has drained the public purse.
The NSF, which is mandated to fund skills development initiatives to combat South Africa’s rampant unemployment, has been under scrutiny for years.
Earlier this year, the Portfolio Committee on Higher Education expressed its outrage over the NSF’s financial mismanagement, citing questionable investments, irregular payments and a R3.7 billion underspend in the 2023/24 financial year.
This latest development follows calls made by Letsie in February for the president to broaden the SIU’s mandate to include a thorough investigation of all NSF projects.
His appeal came after the NSF presented its audit action plan to the committee, outlining its efforts to address concerns raised by the Auditor-General in the 2023/24 annual report.
However, the report highlighted severe financial mismanagement within the NSF, including questionable investments and payments made without due process.
The committee further criticised the NSF for diverting skills development funds into business accounts rather than interest-bearing accounts designated for skills development providers (SDPs).
Among the most concerning findings was the improper payment of funds to Medirwe Investments without adhering to the required procedures.
“It is unacceptable that an institution meant to uplift the youth and address our unemployment crisis failed to utilise billions while millions of young people remain jobless,” Letsie added.
The SIU’s investigation into the NSF forms part of a broader crackdown on corruption within key state institutions.
Ramaphosa has also authorised investigations into the South African Broadcasting Corporation (SABC), Eskom, PetroSA, Transnet, and South African Airways (SAA), among others.
The SIU’s probe represents a crucial opportunity to rectify systemic failures and ensure that public funds are channelled toward their intended purpose.
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