1 PSETA ROAD AHEAD…….. PRESENTATION TO PORTFOLIO COMMITTEE ON PUBLIC SERVICE AND ADMINISTRATION 8 SEPTEMBER 2010

2 PSETA MATTERS:- 1.Turn around strategy:  Implementation of the MoA between SETA and DPSA  AG Report and Management letter  PWC Forensic Audit 2.Highlights for 2009/ Strategic Objectives 4.Challenges 5.Conclusion

3 MoA between DPSA and PSETA  Objective of the MoA:  Securing PSETA’s Operational Independence from DPSA  Assist PSETA in setting up effective operational infrastructure, i.e. Organisational policies and procedures.  Transfer DPSA seconded staff to PSETA – committee established to facilitate transfer – union representation.  Facilitates transfer of funds from DPSA to PSETA ito of PMFA  Deadline 31 March 2011

4 Forensic Audit  PWC commissioned in 2007 to conduct forensic audit subsequent to the fraudulent activities conducted on the NSF Account  Report finalised July referred to the SIU for further investigation.  Briefing to the SIU to be finalised in two weeks – to include widening the scope of investigation.  End result = Close chapter of fraud & corruption within PSETA.  Start on clean slate with culture of high ethics, accountability and sound governance.

5 AG Report and Management letter  Set up Action Plan to resolve challenges raised by AG within the next 6 months. Some of the key areas of focus and action taken are:  Lack of supporting evidence. Developing Records Management Policy in line with National Archives and implemented integrated MIS.  Lack of polices and procedures. Review of current policies and procedures and development of sound internal controls  Controls of learner contracts are not effective: Develop verification plan and operating procedure manual, taking into account recommendations of the SIU  Non-compliance with the PFMA: Internal Audit function and Audit Committee already set in place. Risk Assessment Committee to be set in place.  NSF Liability & DPSA Receivable: Measures to resolve outstanding issues put in place, including mediation by Treasury

6 Highlights for 2009/2010  Key milestones  Developed three learning frameworks for three learnerships  Revised the learner agreement registration process and provided government departments with an induction workshop.  Trained 132 Skill Development Facilitators on the use of the Sector Career Guide and Scarce and Critical Skills List in six provinces  Successful SAQA audit and recertification of PSETA as ETQA for the public sector  Identified and assisted fifth Institute of Sectoral or Occupational Excellence (ISOE) to achieve strategic provider status.  Accredited sectoral training providers for the Department of Home Affairs and Statistics SA

7 Strategic Objectives  To facilitate and campaign for the amendment of the Skills Development Levy Act and S 30 of SDA in favour of the Public Sector to contribute the Skills Development Levy.  To develop a dynamic funding model and concomitant strategies to alleviate the funding situation of the PSETA and ensure its capacity to deliver its turnaround strategic plan.  To strengthen the PSETA Governance Capacity and thereby improve the Board’s capacity to fulfil its governance and fiduciary responsibilities.  To rebrand and step up the public profile of the PSETA amongst the general public based on renewed sense of purpose and direction.  To establish a full-fledged PSETA that is independent from the DPSA financially and administratively.

8 FORTH COMING EVENTS  Skills Needs Symposium 17 September 2010 – development of Sector Skills Plan  Induction Workshop for Training Committees of Dept of Public Works, Roads & Transport - 23 September 2010  Feedback and SSP workshops from 12 October 2010 to 16 November 2010 with Provinces and National Departments.  Inter- Gseta forum – PSETA – to be instrumental in co- ordination, and catalyst for identifying workplaces in Public Service for absorption of learners

9 Road ahead …..key challenges  Implications of Administration by DHET  Conclusion of SIU investigations asap.  Independence from DPSA – certificate of assurance – putting in place effective policies, systems, procedures & staffing within 6 months  Review of PSETA Scope – parastatals, public entities, other SETAs  Funding model for PSETA to receive 1% levy from Government departments (S 30 of SDA)  Clarify relationship with DPSA and DHET in relation to skills development needs of Public Service – interaction with Joint Ministerial committee…..alignment of PSETA objectives and activities with NSDS III

10 Conclusion  Turnaround of PSETA has begun  New CEO and CFO committed to establish PSETA as a leading, independent, sustainable Training Authority  PSETA has potential to lead government as the skills development champion in the country, providing workplaces for learnerships and apprenticeships to other sectors in the labour market, and becoming a catalyst for job creation.  PSETA is best placed to play this facilitative and co- ordinative role in partnership with the critical role players.

11 END Q & A