1. Department of Higher Education and Training
Briefing on finalisation of the new SETA landscape; private TVET colleges adhere to the payment of certification; bid adjudication process to construct the remaining TVET college campuses and responses on UniZulu, MUT, WSU, NSFAS, CPUT and Intellimali
22 November 2017

2. Presentation Outline
Briefing by the Department of Higher Education and Training on:
Progress in the finalisation of the new SETA landscape;
Steps taken to ensure private TVET colleges adhere to the payment of certification fees owed to Umalusi;
Update on the bid adjudication process towards the appointment of service providers to construct the remaining TVET college campuses; and
Response to the Committee’s recommendations on the meeting with UniZulu, MUT, WSU, NSFAS, CPUT and Intellimali.

3. Progress in the finalisation of the new SETA landscape

4. Consultation/Engagement
White Paper for Post-School Education and Training
Ministerial Task Team Report on SETA Performance
Human Resource Development Council Report on the Skills System Review
Number of other reviews and reports considered
National Skills Development Strategy and SETA Landscape Proposal (NSLP 2015) – 29 February 2016
SETA Landscape due to lapse 31 March 2018
NSDS III due to lapse 31 March 2018
Government Gazette issued to extend NSDS III and Re-establish SETAs until 31 March 2020
Cabinet
NSLP Public Comments
Task Teams (WP/MTT)
NEDLAC
National Skills Authority (NSA)
SETAs
QCs
Inter- governmental engagements
Consultation/Engagement
Background

5. Road Map
Gazette calling for Public Comments to be issued by end November 2017
Ministerial Approval of the NSDP – 31 March 2017
Gazetting of the NSDP and commence with development of phased-in implementation plan/s – including legislative reviews, engagements and consultation on the NSDS drafting, research and business case etc – 1 April 2018.

6. Part 1: Overarching Principles
Principle 1:Towards an integrated post-school system
Focus on greater levels of integration and coordination of the planning, funding, monitoring and evaluation of the system.
This in intended to encourage stakeholders to actively participate and articulate their concerns and objectives as DHET will take responsibility for driving this system by working closely with key social partners.
These changes are intended to improve the quality, quantity and relevance of post-school education and training system in South Africa.
Principle 2: Locating the post-schooling system within a wider context
The White Paper sets out a vision of a transformed post-school education and training system, which is expanded, equitable, diverse and integral to government’s policies and contribute to the development of the economic, social and cultural life of our country.
This speaks directly to the Vision 2030 and the youth focus of the National Development Plan.

7. Principles for the Skills Landscape
Transformational Imperatives – NSDS
Principle 1: Advancing an equitable and integrated system
Partnership and collaboration
Principle 2: Greater Inclusivity and Collaborations across the system
Access and standardisation
Principle 3: Focusing on support systems for learners/ stakeholders
Improving Accountability Framework through improved Monitoring and Evaluation
Principle 4: Strong Emphasis on Accountability
Ensure greater coherence of system while also rationalising and streamlining of institutional and functional overlaps
Principle 5: Rationalising and Streamlining the skills Landscape

8. Objectives – Building on NSDS III
- Framework for collaboration with Educational institutions to increase enrolment;
Funding Occupations in High Demand (49.5%) – WPBL Incentives
Fund National Priorities that focus on the needs of the poor (20%);
Longer term planning
Fiscus and Levy to support occupational priorities;
Longer term planning and funding to build capacity to deliver programmes to address occupations in high demand;
Support Workplaces and institutions partnering - Incentives
Quality Councils to ensure qualifications and curricula in place;
Demand Analysis to inform enrolment Planning;
…Enhancing articulation
- Partnerships with ……..TVET/CETC/HEI
Determine Occupational Demand based on workplace demand and Government Priorities through research and analysis
Understanding Demand
Steering Supply – Qualification and Provision
Steering Supply - Funding
Growing Supply

9. Part 2 : Institutional Arrangements
SETAs with no limited lifespan but mechanism to address non performance;
SETAs demarcation based on industrial classification, value-chain and financial viability;
Establishment of Shared Services
Standardised systems for applications (All types of applicants)
Establishment of SETAs
Stakeholder Driven Boards;
Limit Board Size determined by DHET based on sector;
Board focus on Strategic (not operational) and DHET determine remuneration;
Administrator appointed based on review report by an Assessor appointed by the department.
Accounting Authorities
Tighten focus of the SETAs in line with the objectives set in the WPPSET;
Quality Assurance arrangements between SETAs and QCTO made explicit – qualification development against priorities and workplace approval.
Scope of SETAs/QCTO
Longer term planning aligned to MTSF and fiscal allocation to educational institutional planning;
Reporting – non performance re claw back
Planning, Reporting and Accountability
Align skills levy to fiscal allocations against occupations in demand
Cost savings – Quality Assurance and Shared Services;
NSF – National Priorities.
Funding
Strengthen the role of NSA for monitoring and evaluation as well as policy development and advisory role inclusive of Quality Assurance (QCTO), NSF and SETAs.
Strengthened NSA

10. Key proposals of the NSDP
Moving beyond monitoring and evaluation by addressing systematic coherence, function alignment, funding flows, longer terms planning, support and monitoring and evaluation of the entire skills landscape as part of the PSET system of South Africa;
Inclusion of transformational imperatives;
Alignment of strategic objectives of skills landscape with PSET objectives; and
Strengthening all strategic aspects of the system (no longer just about effectiveness and efficiency).

11. Key proposals of the NSDP
Reducing the number of SETAs:
Post the approval of the NSDP the reduction of the number of SETAs in terms of two criteria is proposed:
Value Chain e.g.. AgriSETA and FOODBEV as well as Finance, Banking and Insurance amongst others;
Financial Viability e.g. AGRISETA, CATHSETA, PSETA,
A government gazette on the SETA Classification informed by the criteria will be issued for public comment in 2018 in order to gazette the legislation and institutional arrangements by prior to the 31 March 2020 (the end of the extension period).

12. Key proposals of the NSDP
Amendments to Legislation and Policy:
Amendment to the Skills Development Act:
Skills Institutional function alignment e.g.. SETA Functions, QCTO Functions in terms of Quality Assurance and NSA expanded mandate and functions.
Amendments to SETA Constitution to strengthen governance and accountability;
SETA Lifespan in terms of permanency and longer term planning;
Introduction of Assessor Appointment to inform actions to be taken e.g.. Administration, forensic investigation and poor performance.
The provisions for the establishment, amalgamate and disestablishment of SETAs is currently provided in the Act and would enable the SETA classification process.
Include regulations that the Minister will issue to address issues of effectiveness and efficiency such as shared services, standardisation, governance, planning.
Align other legislative provision and policy directives e.g. SETA Grant Regulations, SETA Governance Regulations, etc

13. Key proposals of the NSDP
Public Service contribution and participation in Skills Development:
A Task Team between the DHET, DOL, DPSA and National Treasury identified that public service is contributing to Skills Development across various system allocations;
However the DPSA and National Treasury agreed that they need to ensure that the public service contribution to SETAs (that is the 30%) would be more effectively enhanced.
The mechanisms identified to ensure the public service contribution to SETA will include the introduction of regulations to compel the collection, allocation and funding arrangements for public service.

14. Key proposals of the NSDP
National Skills Authority vs National Skills Employment Council:
Business and Labour proposed that a National Skills and Employment Council (NSEC) be established to steer the strategic policy and monitoring and evaluation of the Skills system – in other words the NSEC would determine all strategic priorities and thus the funding allocations. However a separate institution the National Skills Agency would administer and process payments.
The Department is in the process of publishing the NSDP to further solicit input whilst committing to continue with the bi- laterals with social partners.

15. Steps taken to ensure private TVET colleges adhere to the payment of certification fees owed to Umalusi

16. Steps taken to ensure adherence by private TVET colleges adhere
The DHET has inherited a backlog of NC(V) certificates from the Department of Education and DHET has worked in partnership with State Information Technology Agency (SITA) and the quality assurer Umalusi in a special project to clear outstanding NC(V) certificates for Technical and Vocational Education and Training (TVET) Colleges going as far as 2007.
As at September 2017 a total of certificates have been processed and released to colleges on weekly basis.
The backlogs for NC(V) certificates has been cleared and certificates of candidates are now released three months after the release of the results.
This progress report was presented to the Portfolio Committee held on 05 October 2017.

17. Steps taken to ensure adherence by private TVET colleges adhere
As at 14 June 2017 there was 659 certificates belonging to private students which were not created by Umalusi because students owed Umalusi and needed to pay first before their certificates could be created and released. The DHET consulted with Umalusi regarding this issue and it was agreed that certificates for these candidates will be created and released when students pay the outstanding fees to Umalusi.
Umalusi has cleared the outstanding certificates on the system and there is no longer outstanding certificates for these candidates and the record is kept by Umalusi in respect of those that received the certificates after paying.

18. Update on the bid adjudication process towards the appointment of service providers to construct the remaining TVET college campuses

19. BID invitation Date advertised: 03 May 2016
Media: Tender Bulletin, CIDB, DHET website
Compulsory Site Briefing Sessions: 18 May and 03 June 2016
Closing Date and Time: 17 June 2016, 11h00
Number of bids received on time: 389

20. TVET SITES Graaff – Reinet (Construction) Ngqungqushe (Construction)  
Graaff – Reinet (Construction)
Ngqungqushe (Construction)
Sterkspruit (Construction)
Aliwal North (Construction)
Giyani (Construction)
Balfour (Construction)
Msinga (Construction)
Umzimkhulu (Construction)
Nkandla B (Construction)
Greytown (Construction)
KwaGqikazi (Refurbishment)
Nongoma (Refurbishment)
Vryheid (Refurbishment)
TVET SITES

21. NUMBER OF RESPONSIVE BIDS RECEIVED PER SITE
Sites
Number Received
Non-responsive
Responsive
1. Aliwal North 42 32 10
2. Balfour 49 34 15
3. Giyani 37 28 9
4. Graaff – Reinet 35 25
5. Greytown
6. KwaGqikazi 12 11 1
7. Msinga 27 22 5
8. Ngqungqushe 21 18 3
9. Nkandla B 17
10. Nongoma 20 13 7
11. Sterkspruit 31 6
12. Umzimkhulu
13. Vryheid 26 8
Total
389
290 99

22. NUMBER OF QUALIFYING BIDS RECEIVED
Sites
Number of bidders
Bids scoring less than 50% on functionality (disqualified)
Bids scoring 50% and above on functionality (qualified)
1. Aliwal North 10 6 4
2. Balfour 15 5
3. Giyani 9 3
4. Graaff – Reinet 7
5. Greytown
6. KwaGqikazi 1
7. Msinga 2
8. Ngqungqushe
9. Nkandla B
10 .Nongoma
11. Sterkspruit
12. Umzimkhulu
13. Vryheid 8
Total 99 58 41

23. SITES WHERE BIDS CAN BE RECOMMENDED FOR APPOINTMENTNo
Sites
Bids to be recommended
Price to be negotiated
No acceptable bid offer 1
Aliwal North X 2
Balfour 3
Graaff – Reinet 4
Greytown 5
Umzimkhulu 6
Giyani 7
KwaGqikazi 8
Msinga 9
Ngqungqushe 10
Nkandla B 11
Nongoma 12
Sterkspruit 13
Vryheid
Total

24. CURRENT STATUS AND WAY FOREWARD
BAC recommendations:
Approved by Accounting Officer
Validity period: Extensions:
Until 30/11/2017 (possible to further extend with permission of bidders)
Matters to be finalised:
Capacity Assessment: Bidders who are recommended for more than one site.
Negotiation: Bidders who quoted considerably more than the estimated BOQ amount.
Operational budget: Funds to be secured.

25. Thank You