CATHSSETA Annual Report Briefing: Challenges and Way Forward

2. Annual Report Briefing Select committee on Education and Recreation 26 November 2014, South African Parliament Cape Town

3. Outline • Introduction • CATHSETA Background / Overview • Legislative Mandates • CATHSSETA Strategic Direction • Learning Programmes • Financial Performance • Human Resources • Governance • Way Forward • Questions

4. Core Mandate of CATHSSETA • The Purpose of the CATHSSETA is to contribute to South African Economy through the facilitation of skills development in the relevant Sub-Sectors. • CATHSSETA is broken into six (6) sub-sectors namely; • Culture, Arts & heritage • Tourism and Travel services • Hospitality • Sport, Recreation and Fitness • Conservation • Gaming and Lotteries

5. Legislative Mandates • South African Constitution • Skills Development Act of 1998; • South African Qualifications Authority Act of 1995; • Education and Training Quality Assurance Bodies Regulation of 1998; • Skills Development Levies Act of 1999; • Learnership Regulations of 2006; • National Qualifications Framework Act of 2008; • Public Finance Management Act • New Grant Regulation effective from 1 April 2013.

6. Overview/Background of the 21013/14 ARP • CATHSSETA has been facing challenges of consistently not meeting its predetermined objectives. • There’s been serious allegations made against some Board members and CEO • The Board commissioned Grant Thornton to investigate the allegations and make recommendations • The Board couldn’t act on the findings due to their differences • The Minister instructed the Board to resolve the challenges • The infighting within the Board affected the performance of the organization wherein the targets were not met on a quarterly basis. • For the FY 2013/14, CATHSSETA received a qualified Audit with matters of emphasis • Due to disfunctionality, the Minister instructed the DG to put the SETA under administration • An Administrator was appointed on the 16th October to take over as the Accounting Authority for CATHSSETA

7. Overview(continued) Distribution of Employees Per Sub-Sector Summary: Highest employed are in the hospitality and lowest Arts, Culture, and Heritage

8. CATHSSETA Strategic Direction • Vision:Sustainable People Development for Prosperity • Values: Service Excellence; Efficiency; Equity; Integrity; Partnership; Quality; and Accessibility • Mission: To facilitate the skills development of our people through creating strategic partnerships to ensure a meaningful contribution to the economic growth within our sector Strategic Objectives • Establishing A Credible Institution Mechanism For Skills Planning • Increasing Access To Occupationally Directed Programmes • Promoting The Growth Of Public Fet College System That Is Responsive To Sector, Local, Regional & National Skills Needs & Priorities • Addressing the Low Level Of Youth & Adult Language & Numeracy Skills To Enable Additional Training • Encourage Better Use Of Workplace-based Skills Development • Encouraging And Supporting Cooperatives, Small Enterprises, Worker Initiated, NGO & Community Training Initiatives • Increasing Public Sector Capacity For Improved Service Delivery And Supporting The Building Of A Developmental State • Building Career & Vocational Guidance

9. Priority Scarce and Critical Skills • Hotel Manager • Restaurant Manager • Sport facility Manager • Small Business Manager • Park Ranger • Conservation Scientist • Sound Technician • Chef • Sports Official • Cook

10. Learning Programmes

11. Learning Programmes These are programmes that lead to a Qualification • Learnerships • Internships • Academic learning programmes • Skills programmes (short courses) • Learnerships & Internships are the core mandates as they interact workplace experience

12. Number Certificated by Province 878 970 513 1508 275 412 970 1026 2232 • Comments • Highest in Western Cape • Lowest in Northern Cape

13. Learner Equity

14. Assessor and Moderator Registration

15. Bursaries Awarded by Province 37 13 40 5 37 39 40 52 • Comments • Highest in Western Cape • Lowest in Northern Cape • Unknown Limpopo

16. Discretionary Fund expenditure by Province

17. STATEMENT OF FINANCIAL PERFORMANCE (ANNUAL REPORT P 170) R’000

18. Administrators Observations • Divided organization with high levels of mistrust amongst employees • High levels of pending disciplinary hearings • Contracts awarded without following procurement procedures especially unsolicited bids • Contracts awarded to non accredited providers and compliance being facilitated expost facto • Award of international outside of the policy • Broken relationships between AGSA, Internal Auditors and management • No implementation plan for AGSA recommendations • Qualified Audit opinion by AGSA

19. What has been Done by the Administrator • Meeting management for a briefing • Meeting with AGSA & Internal Audit for a briefing • Follow up on AGSA findings and develop a plan to ratify identified weaknesses • Assessment of CATHSSETA’s financial position • Precautionary suspension of the CEO &CFO • Completion of outstanding investigations • Stabilizing the organization • Address staff uncertainties & communicate change • Review plans, budgets and targets for current FY • Review strategy & APP for 2015/16 FY • Weekly management meetings and monthly staff meetings • Engagement of Stakeholders in Gauteng, Durban and Cape Town • Rationalization of functions to ensure integration and improve performance • Finalize Window 2 Discretionary grants allocations

20. What’s the Plan until Financial Year end • Engagement of TVETs to strengthen partnership and assess capacity for training • Sign MOUs with TVETs and workplaces for training and placement of learners • Bimonthly engagement of stakeholders • Establish joint working committes across sectors • Finalize plans for 2015/16 FY • Develop and implement systems to address AGSA findings

21. QUESTIONS / COMMENTS THANK YOU