By Johnathan Paoli
The Democratic Alliance (DA) has raised alarm over what it describes as “exorbitant and unjustified” board remuneration within the Manufacturing, Engineering and Related Services Sector Education and Training Authority (merSETA).
It has again accused the African National Congress (ANC) of turning Sector Education and Training Authorities (SETAs) into cadre deployment hubs at the expense of struggling students and unemployed graduates.
“We have discovered that some SETA boards are being paid millions of rents while young graduates are struggling to find jobs and many students are forced to abandon their studies due to failures.
“Our call is simple. We must put students first, not politically connected individuals. If SETAs are allowed to become deployment schemes, then it is young South Africans who will continue to suffer,” DA MP and higher education spokesperson Matlhodi Maseko said on Wednesday.
According to figures revealed through a DA parliamentary question, merSETA board members collectively received R6.29 million in the 2023/24 financial year, in addition to R924,000 paid to the chairperson alone.
This brings total board-related remuneration for that year to R7.2 million, making it one of the most expensive SETA boards in the country.
The 2024/25 remuneration for the chairperson is R667,000.
Maseko pointed out that Mineral Resources and Energy Minister Gwede Mantashe’s son was allegedly earmarked for deployment to the board, a move the DA claimed to have blocked through public pressure and exposure.
The DA is now demanding a full audit by the Auditor-General into SETA board remuneration and performance, warning that several boards were being used to reward loyalty rather than competence.
The party also intends to push for the disclosure of the political affiliations of all board members and will pursue forensic investigations where necessary.
The DA compared merSETA’s figures to other SETAs, highlighting drastic discrepancies.
Services SETA paid its chairperson R1.27 million and board members R5.57 million in 2023/24; and the Wholesale and Retail SETA spent R3.99 million on board members and R351,000 on its chairperson.
Media, Information and Communications Technologies SETA paid R3.58 million to its board and R625,000 to the chairperson, while the Financial and Accounting Sector Education and Training Authority allocated R3.31 million to board members and R566,004 to its chairperson.
Remuneration structures include meeting allowances, preparation fees, travel claims, mobile data and tablet stipends, and membership to professional organisations like the Institute of Directors of South Africa.
Payments are determined by SETA-specific policies and National Treasury guidelines, but Maseko argues this framework is being abused.
The controversy comes amid a deepening governance vacuum at merSETA.
The board’s term expired in March this year, and despite reopening the nominations process in May, the Higher Education and Training Department has yet to appoint a new Accounting Authority.
In the interim, the department has controversially instructed SETA CEOs to act as governance structures.
At merSETA, this presents a major conflict, as the CEO position is also currently held in an acting capacity, compounding the leadership crisis.
The plastics manufacturing industry, among other sectors, has raised concerns over this arrangement, citing fears over ethical leadership, accountability and the risk of unchecked decision-making.
The DA has pledged to continue exposing cadre deployment in SETAs and ensuring that the post-school education and training system serves learners, not political elites.
In Parliament, the DA will push for urgent reforms to appointment processes, strengthened vetting procedures and transparency in the financial and political interests of all board members.
The DA is also calling on newly appointed Higher Education Minister Buti Manamela to distance himself from the ANC’s legacy of cadre deployment and to prioritise clean governance and student-centred leadership in his new portfolio.
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