Parliamentary public accounts committee refers National Skills Fund report to SIU

STANDING committee on public accounts (Scopa) chairperson Mkhuleko Hlengwa. Picture: Thokozani Mbunda/African News Agency (ANA)

STANDING committee on public accounts (Scopa) chairperson Mkhuleko Hlengwa. Picture: Thokozani Mbunda/African News Agency (ANA)

Published Oct 25, 2022

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The Department of Higher Education and Training has less than two weeks to meet with the Special Investigating Unit (SIU) after the report of the investigation into the National Skills Fund (NSF) was handed over to the investigating unit.

It was the Parliamentary Standing Committee on Public Accounts (Scopa) that referred the forensic report to the SIU following disclaimed audit outcomes from the auditor-general.

The report relates to R5 billion that was not properly accounted for at the National Skills Fund, which led to an investigation by the auditor-general.

Scopa chairperson Mkhuleko Hlengwa said the audit outcomes were “unacceptable” and a forensic investigation which came out in March 2022 was carried out by Nexus.

However, the committee has been trying unsuccessfully to access the report for a while. It received a letter from the Minister of Higher Education and Training, Dr Blade Nzimande, asking the committee to invoke Rule 189 of the National Assembly Rules requesting the report to be treated as confidential.

The initial reaction of the committee was to disagree with that request. Subsequently, however, the committee subjected its disagreement with that request to Parliament’s Legal Services with the intention of getting a concrete interpretation and how to apply Rule 198 of the NA Rules.

The legal opinion from Parliament’s Legal Services confirmed Scopa’s position on the matter. Based on that confirmation by Parliament’s Legal Services, Hlengwa informed Dr Nzimande that Scopa had not acceded to its request to treat the report as confidential.

Scopa received a briefing from the National Skills Fund (NSF) on the independent forensic investigation last week.

“The committee has noted certain limitations experienced by Nexus when it was conducting the forensic investigation. This is why the committee welcomes the commitment from the Deputy Minister of Higher Education and Training on fostering a working relationship between the Department of Higher Education and Training and the Special Investigating Unit (SIU) on this matter.

“Scopa wishes to ensure consequence management is meted out and also appeals for the recovery of funds. Furthermore, the committee calls on state institutions to work together to fight corruption and maladministration,” Hlengwa said.

The committee also welcomed the information that the NSF has been working with the auditor-general to ensure that the fund meets the audit requirements. Hlengwa said they hoped that the results of this work would be available in the next audit report.

In a Parliamentary statement, Scopa said that it also noted three areas that are emanating from the NSF process as it deals with the outcomes of the forensic report.

The first area is the disciplinary hearings that are taking place within the NSF, the second area is the Hawks-led criminal investigations which are under way.

The third aspect which must now take place is the SIU-led process on the civil litigations.

“Scopa also wishes to see a meeting between the department and the SIU taking place on this matter within the next 14 days to ensure that the third leg of this process unfolds. Scopa will monitor the process by requesting quarterly reports from all the involved parties to ensure that work is being done,” Hlengwa said.

The committee will only submit its report on this matter to the National Assembly once it has received feedback from the meeting that must take place between the department and the SIU within the next 14 days, Scopa said.

kailene.pillay@inl.co.za

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