President Cyril Ramaphosa has signed Proclamation 253 of 2025, granting South Africa’s Special Investigating Unit (SIU) the authority to investigate allegations of serious maladministration and financial mismanagement within the National Skills Fund (NSF).
The NSF funds skills development initiatives which aim to improve the skills base of the South African workforce. It supports various training programmes and projects targeting unemployed individuals and those seeking to upskill themselves.
The Portfolio Committee on Higher Education welcomed the investigation into the NSF and described it as “long overdue.”
The NSF appeared before the committee in 2025 and faced dissatisfaction from the committee due to financial irregularities, questionable investments, and payments made without due process.
Committee Chairperson Tebogo Letsie believes the SIU’s investigation is crucial in ensuring accountability and restoring public confidence.
We welcome the long-overdue Proclamation 253 of 2025, which grants the SIU the authority to investigate serious maladministration, improper or unlawful conduct by officials and employees of the Department of Higher Education and Training, as well as potential mismanagement of funds allocated to the NSF.
Letsie emphasised the importance of scrutinising procurement processes, contracting for skills development programmes, training projects, and the appointment of implementing agents.
The chairperson believes legal action must be taken against anyone found to have unduly benefited from public funds.
It is unacceptable that an institution meant to drive skills development underspent R3.7 billion in the 2023/24 financial year, especially given the high unemployment levels in our country,
What The Investigation Will Focus On
The SIU’s NSF investigation will focus on procurement and contracting for the implementation of skills development programmes, training projects, and the appointment of implementing agents.
The investigation will cover the following projects:
- Yikhonolakho Woman and Youth Primary Co-operative Limited (NSF 16/1/3/21)
- Dithipe Development Institute (Pty) Limited
- Dzunde Farming Co-operative Limited - Rural Development
- Dual System Apprenticeship Pilot Project - Port Elizabeth TVET College (NSF10/3/8/2/9)
- Rubicon Communication CC
- Centre for Education Policy Development (Fruitless & Wasteful Expenditure) - NSF 16/2/1/2 & NSF 10/4/4/3
- Emanzini Staffing Solutions (Pty) Limited (NSF16/1/4/55 and/or 2016-NSFWIL - 0174)
- ADA Holdings (NSF16/1/4/5, Ingewe TVET College - NSF/16/3/2/2 & Lusikisiki/ Bizana - NSF/16/1/2/3)
- Ekurhuleni West TVET College (NSF16/1/2/39)
- Passionate about People (Pty) Limited (NSF/16/1/3/12&16).
The SIU will also investigate any unauthorised, irregular, fruitless, or wasteful expenditure by the NSF or the Department of Higher Education and Training. The scope of the investigation includes any unlawful or improper conduct by suppliers, service providers, and other involved parties between 1 January 2013 and 28 March 2025 or related matters before or after this period.
The SIU previously conducted a similar investigation at the National Student Financial Aid Scheme (NSFAS) and recovered more than a billion rand in public funds.
