PRESENTATION ON THE PROPOSED NEW LANDSCAPE AgriSETA National Road Shows March – April 2016 PRESENTATION ON THE PROPOSED NEW LANDSCAPE Jerry Madiba: (CEO AgriSETA) / Thembelani Mangena (Manager Operations)

Organogram for the CEO CEO: AgriSETA Jerry Madiba Board & Compliance Administrator VACANT Manager: Skills Delivery Gerard Mamabolo Fanny Phetla Manager: ETQA Pumlani Xaba Skills Planning Acting Manager: HR Onicca Moloto Project Manager: SCM Manager: Operations Thembelani Mangena PA: Ntokozo Nzimande Marketing: Caren Cleinwerck

What does it include Proposed funding –Pages 06 NSDS Process from 01 April 2018: Proposed funding –Pages 06 Current problems –Pages 11-13 Option considered –Pages 13-16 SETAs to SETABs –Page 36 Roles of SETABs in NSDS IV –Pages 24-28 Three basic concepts -Pages SETAs as public sector ‘intermediaries’ –Page 19 Representations by stakeholders and SETAs to DHET (1 month)

Continuation of the inclusion NSDS Process from 01 April 2018 : SETAB cluster management by DHET –Page 42 Role of the DHET with SETABs related activities –Pages 40-41 Structural Implication –Page 45 Government Gazette –Pages 2-4

Proposed funding PRESENT FUNDING OUT OF R100.00 PROPOSED FUNDING OUT OF R100.00 NSF receives R20 and SETAs R80 NSF receives R60.10 while SETABs receives R39.90 SARS receives R2 and SETAs administration R10 SARS receives R2 and SETABs administration is R10 National Skills Priorities R18 and Mandatory R20 National Skills Priorities R18 and Mandatory (WSP ) is R20 Discretionary is R49.50 and QCTO receives R. 50 QCTO receives R.50 and Discretionary (Sector Specific Grant) is R9.90 PIVOTAL GRANT under NSF is R39.60

PROPOSED FUNDING 100% levy Current Levy/ grant system Proposed Levy/grant system 20% National Skills Fund 10% SETA Administration SETAB Administration plus cluster management and shared services SETA Mandatory Grant SETAB Workplace Skills Plan 0.5% SETA allocation for QCTO National Skills Fund for QCTO 20% of 49.5%( 9.9% of total levy paid SETA sector discretionary grant SETAB Sector Specific grant 80% of 49,5%(39.6 % of the Total Levy paid SETA PIVOTAL grants NSF( ring-fenced)- Utilized for PIVOTAL programmes

CURRENT problems Many SETAs have failed to meet their targets as agreed in their APP and SLA as agreed with Director General and Minister DHET Collectively SETAs have failed to disburse over R2.6 Billion allocated, e.g. in 2014/15 Every other SETA have own system and time frames resulting in 21 duplication Some SETAs with strategic importance have a low income due to the low wages of their sectors e.g. AgriSETA

CURRENT problems -Continued Delays in allocation of grants is a widespread complain by employers There has been persistence challenges with governance of some SETAS The administration costs of the system is too high

OPTIONS CONSIDERED OPTION 1: Minimal changes : leaves a lot of challenges unattended OPTION 2: Cluster SETAs: Merger of Institutions brings disruption to service delivery OPTION 3: A National Skills Council: will entrench Silos within DHET OPTION 4 SETAs as an integral part of the larger PSET system : Accepted as viable due to White Paper on Post Schooling

SETAs to SETABS (pages 36) Sectorial Education and Training Authorities (SETAs) will change to become Sectorial Education and Training Boards (SETABs ) SETABS will be established as Specialized Delivery Units of DHET in terms of 7B of the Public Service Act ( 1994, No 103 of 1994) Advisory Boards will not have Executive functions and the Minister will effect changes to Skills Development Act and Skills development Levies Act Oversight of the SETABS by DHET will be undertaken in a clustered fashion

ROLES OF SETABS IN nsds iv Determine the Skills needs of employers by OFO for the sector Secure workplace-based learning opportunities for learners Support education and training institutions to meet their skills needs, and Perform system support and manage the budget linked to their mandate

SETAB Cluster management BY DHET P42 Cluster 1 Cluster 2 Cluster 3 Cluster 4 Cluster 5 Public Sector Services Financial Sector Service Food, tourism & Recreation Resources and infrastructure Manufacturing and Technology LGSETA INSETA AGRISETA MQA MERSETA ETDP BANKSETA WRSETA TETA MICT HWSETA FASSET CATHSSETA CETA CHIETA PSETA SERVICES EWSETA FP&MSETA SASSETA FOODBEV

Role of dhet with SETABS related activities Skills Planning Shared Services Occupational Teams and Intermediate Bodies SETAB Cluster Management in DHET

Shared services focus areas SHARED SERVICE FOCUS AREAS (p40) Corporate governance ( risk management, Audit) Business management ( Human resources Management support Financial management Information and Communication Technology management Knowledge management Facilities management Document management Project management Contract management

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