The Transport Education and Training Authority (TETA) says it could not turn a blind eye to material irregularities in relation to the payment of its Discretionary Grants, whose payment has been delayed for the first time in the authority’s 25-year history.
This follows reports in the media over the weekend that TETA has failed to make grant allocations, leaving learners in limbo. The report appeared in the Sunday Times, among other platforms.
The report also states that TETA Chief Executive Officer Maphefo Anno-Frempong sought to control grant allocations through a private entity and to appoint service providers irregularly.
“TETA refutes the unsubstantiated claims by the Sunday Times Newspaper that its CEO colluded with service providers in a scheme that has essentially handed control over who gets access to hundreds of millions in grant funding to a private entity,” TETA said in a statement.
“This is a narrative sponsored by disgruntled individuals within and outside TETA, who would have preferred the new TETA board to turn a blind eye and rubber-stamp the recommendation to approve over R380 million worth of Discretionary Grants, despite serious discrepancies flagged by a probity audit.”
TETA says its probity process found that a number of companies that were recommended to receive the 2025/2026 Discretionary Grants had directors who were employed by the state.
It also found that 14 companies, who stood to be awarded contracts worth over R10 million, were deregistered with the Companies and Intellectual Properties Commission (CIPC).
“The board could not turn a blind eye to the serious discrepancies flagged by the probity and make the allocations as that would have constituted irregular expenditure,” the statement said.
“There is no way the board could have ignored clear governance red flags and proceeded to allocate public funds with recklessness. The mere suggestion that the board should have ignored these serious discrepancies is not only irresponsible, but is at odds with its fiduciary obligation as the Accounting Authority- operating under the Public Finance Management Act (PFMA)” which TETA has since suspended three executives.
TETA says, contrary to the Sunday Times claims, its board has since approved bursaries worth R78 million and R142 million in grants. By the end of the financial year at the end of March, the board expects to have approved a total of R474 million in Discretionary Grants.