Blade Nzimande

Cutting out the private sector?

http://www.thenewage.co.za/blogdetail.aspx?mid=186&blog_id=%20929

Services SETA - Latest

http://www.businessday.co.za/articles/Content.aspx?id=147873

Services Seta wins court case

The labour court has granted an application by the Services Seta (sector education and training authority) to have a constitution and board imposed on it by higher education and training minister Blade Nzimande declared unlawful.

SSETA

The following notice was gazetted in Gazette no 34245 on 21 April:



Department of Higher Education and Training

No 372

21 April 2011

SKILLS DEVELOPMENT ACT, 1998 (ACT NO 97 OF 1998)

APPOINTMENT OF THE SERVICES SECTOR EDUCATION AND TRAINING AUTHORITY SETA (SERVICES SETA) ADMINISTRATION

I, Gwebinkundla Felix Qonde, Acting Director-General: Department of Higher Education and Training, by virtue of the powers vested in me by section 15 (2) of the Skills Development Act, 1998 (Act No 97 of 1998) hereinafter referred to as the Act, hereby suspend the Accounting Authority (AA) of the Services SETA as directed by the Minister of Higher Education and Training in terms of section 15 (1) and section 15 (4) of the Act; and in terms of section 15 (2) (d) hereby directs the transfer of all of the funds in the Services SETA’s bank account to the National Skills Fund with immediate effect; and

Appoint Dr S Moon as an Administrator for a period of six (6) months from the date of publication of this notice to take over the administration of the Services SETA that was established in terms of Government Notice No R1055 in Government Gazette 33756 of 11 November 2010, read with Government Notice No R252 in Government Gazette 34155 of 25 March 2011 and the appointment which may be reviewed at the expiry of the said period.

The Powers and Duties of this Administration shall be as indicated in Schedule 1 of this Notice.

Mr Gwebinkundla Felix Qonde

Acting Director General: Department of Higher Education and Training

20 April 2011

SCHEDULE 1

POWERS AND DUTIES OF THE ADMINISTRATOR

1. Powers of the administrator are as follows:

(a) The role of the accounting authority of the Services SETA as provided for in the Public Finance Management Act (PFMA), 1999 (Act No 1 of 1999) and the relevant Regulations;

(b) Transfer all of the funds in the Services SETA’s bank account to the National Skills Fund with immediate effect;

(c) Establish, if necessary, with the Minister’s approval, chambers as provided for in sections 12 and 13 of the Act;

(d) Review the terms and conditions of employment of the Services SETA employees where necessary;

(e) Suspend, institute disciplinary proceedings or replace, where it is necessary any of the officials of the Services SETA for reasons as contemplated in relevant legislation;

(f) Facilitate the review of a constitution for the Services SETA in terms of section 13 of the Act and other relevant legislation for approval and publication by the Minister if necessary;

(g) Facilitate the appointment of a new Services SETA Accounting Authority;

(h) Ensure the management of the Services SETA funds in liaison with the Department of Higher Education and Training (DHET) using the relevant provisions of the Act and as provided for in the PFMA Act, 1999 and the relevant Regulations;

(i) Make rules relating to Services SETA and chamber meetings, financial matters, general procurements and administrative matters which are in accordance with the provisions of the Constitution of the Republic of South Africa, 1996, the Act or any applicable law.

2. Duties of the Administrator shall include the following:

(a) The Administrator will work closely with the:

- Acting Chief Executive Officer of the Services SETA;

- Established joint working committees comprising of Sector Experts;

- The key stakeholders of the Services SETA and their subsequent delegated committees or officials;

- Acting Director-General: Department of Higher Education and Training.

(b) Perform the functions of Services SETA in terms of the Act, the Public Finance Management Act 1999 and other relevant legislation;

(c) Transfer of all of the funds in the Services SETA’s bank account to the National Skills Fund with immediate effect;

(d) Ensure the management of the National Skills Development Strategy III within the Services SETA;

(e) Ensure proper management of the Services SETA funds in liaison with the DHET using the relevant provisions of the Act and as provided for in the PFMA Act, 1999 and the relevant Regulations;

(f) Ensure submission of the progress report with regard to the developments pertaining to the administrative progress of the Services SETA to the acting Director-General: Department of Higher Education and Training;

(g) Perform any such other tasks as may be delegated or instructed by the Minister or acting Director-General: Department of Higher Education and Training, related to the SETA from time to time;

(h) Conclude the project and submit a close out report to the Department of Higher education and Training.

Ivor Blumenthal - his latest battle.

http://www.iol.co.za/business/business-news/services-seta-will-sue-nzimande-over-hijack-1.1054743

Services Seta ‘will sue Nzimande over hijack’
April 11 2011 at 06:04am
By Ayanda Mdluli


--------------------------------------------------------------------------------

The Services Sector Education and Training Authority (Seta) announced on Friday that it would take legal action against the Minister of Higher Education and Training, Blade Nzimande, citing a lack of consultation on the proposed new constitution, and unlawful interventions by the department in the Seta’s governance affairs.

The attempted overhaul of the Setas by Nzimande could result in a boycott by business of the payment of the skills development levy, said Ivor Blumenthal, the chief executive of the Services Seta.

“They may simply choose to ignore it… and business will no longer create learnership and internship opportunities because the Setas have been hijacked,” he said.

Blumenthal said Nzimande wanted to reduce the size of the Seta boards to 15 members.

This move would silence small industries and businesses that made up 90 percent of the 180 000 companies associated with the Services Seta, said Blumenthal.

Thousands of services firms pay skills development levies, of which 20 percent goes to the minister’s National Skills Development Fund. The rest is allocated to the Services Seta, which provides a budget of R750 million every year.

“We object to the administrative intervention by the minister in the governance of the Services Setas to the extent that he has acted unlawfully,” said Blumenthal.

Business Unity SA said it was also preparing an application for an urgent interdict against Nzimande.

Last week Nzimande appointed Sihle Moon, a former ANC researcher and SA Local Government Association Western Cape representative, as the Services Seta’s independent chairman. After the confirmation of his appointment on Friday, his first step was to suspend Blumenthal.

Blumenthal said he was still the chief executive and that the constitution did not have a clause that would enable Nzimande to appoint a chairman to sack him.

Alex Ferreira, an attorney at Edward Nathan Sonnenbergs, the law firm representing the Services Seta, said the legal issues in the case extended beyond the functioning of the Seta and maintained that everyone had to be subject to the law.

He added that the case, which would be heard at the Labour Court, could go all the way to the Constitutional Court because the Seta’s constitution, which was signed on February 18 this year, was being ignored by the department.

The gazetted constitution says that it is the members of the Seta who appoint the chief executive and the council.

Gwebs Qonde, the director-general of the Department of Higher Education, said he could not comment on the Seta’s decision to take the department to court.

Qonde said the department had not received “anything” from the Services Seta or its attorneys. - Business Report

Services SETA v CHE

The Services SETA (Sector Education & Training Authority)
P O Box 3322, Houghton, 2041
Tel: 011 – 276 9600, Fax: 011 – 276 9648
Customer Service Hotline: 0861 10 11 48
Email: customercare@serviceseta.org.za
Website: www.serviceseta.org.za


9 April 2011

TO:
ALL MEMBERS OF THE BUSINESS CAUCUS AND EXCO



Dear Members


Re: PRESS CONFERENCE: 8 APRIL 2011
DECISION OF DEPARTMENT OF HIGHER EDUCATION AND TRAINING TAKEN FOR THE SERVICES SETA


By now you will be aware of the press conference which took place on Friday 8 April 2011, which was chaired by myself together with Dr Ivor Blumenthal and Mr Alex Ferreira representing our attorneys.

We were able to give a clear picture of what had transpired in The Services SETA resulting from us not signing the forth constitution submitted by the Department of Higher Education and Training which in actual fact gave all the decision making to the Ministry and therefore marginalised the structures of organised business and labour in appointing members to the New Council or Accounting Authority.

Again we fully stress that all we required was constructive engagement with the Ministry and, in particular, the Director General primarliy addressing the issue of the nominations and appointments to the New Council. You are fully aware of the background to this which was discussed at the Bosberaad and subsequently in engagements with members of EXCO and the National Council that we have had over the past few weeks.

When our nominations had been submitted for Organised Business and Organised Labour from the Services SETA, there had been two from each represented group accepted and we found this totally unacceptable and were forced to seek legal advice on our position.

Having signed the first draft agreement, which was summarily declined by the Ministry, we are, in terms of our legal opinion, still goverened by our existing constitution which was ratified in 2002 and therefore the Accounting Authority was still vested in the existing National Council.



This gives the existing Council Authority, which should have stepped down on 31 March 2011, its constitutional right too be accountable for The Services SETA and therefore responsible for our CEO Dr Ivor Blumenthal who reports directly to National Council.

Following the press conference it is quite evident that news leaked out quickly, and our CEO, Dr Ivor Blumenthal was contacted by the Director General of Higher Education and Training, Dr Sihle Moon who has been appointed as the new chairman of The Services SETA who expressed his displeasure that The Services SETA would even take this step at this time.

Shortly after this, our CEO Dr Ivor Blumenthal was informed that he was now suspended and no longer responsible for the day to day operations of The Services SETA.

We find this situation totally unacceptable and unconstitutional, and, bearing in mind, the primary foundation of the SETA's is equal representation from Organised Business and Organised Labour and a partnership between Organised Business, Organised Labour and Government. One fails to see the true partnership with measures taken such as this, by suspending the CEO without due communication with the other parties and due process.

It is certainly time that Organised Business, and particularly our representatives on the National Council, to stand up and be counted. Each member represents a constituency and sector in The Services SETA.

It is critical that each member actively engages with their Schedule 1 Association that they represent, advising them of this move and, in particular, seek their genuine support that fairness must prevail and constructive engagement is the primary requirement. This has not been forthcoming from the beginning and whilst we have actively pursued a way forward to a new Constitution as well as a new Board/Accounting Authority to be nominated, our endeavours have not been successful.

One particular statement that has been made is that the chairman of the Business Caucus has not engaged with his members of the Caucus. This is totally untrue and has in fact been ongoing for some weeks so that the last step one would have to take is to seek litigation purely to get fairness and justice for an institution we have all worked for over many years to get it to it's successful level and standards where it is today. We in Business cannot step aside from our responsibility in this endeavour.

New appointees have been gazetted by the Minister and whilst on revieiwing them, there are a number which would be acceptable to the Services SETA, not only from an extpertise and industry point of view, but from a skills aspect but there are some that are totally unknown and perhaps questionable.

I would therefore appeal to each and every member of Business on Schedule 1 organisations to do their rightful duty in advising their constituency of the current position and seek general support to our way forward.

The one most crucial factor for The Services SETA is that we represent many thousands of small and medium sized businesses who, by and large, are not represented in the structures and not actively represented in structures of BUSA through to NEDLAC.

Whilst individuals have driven hard to make that possible, this has not been the case and hence the formation of the BCSA Business Coalition of South Africa which is a collective group of Associations to represent small businesses being formed.



I would urge the participants of the BCSA to also stand up and be counted at this time and through their network seek increased participation in the interest of growing small businesses. When one talks of job creation it is undoubtedly going to come through small business and not through large big organisations/businesses. It is for this very fact that the Services SETA has been substantially successful over the years driving the small and medium sized enterprises and servicing them and growing the skills base there.

Time is short and a meeting has been tentatively set up for Tuesday 12 April with members of EXCO and the Director General. It could also include other parties who we are not necessarily aware of at the moment.

As the outgoing Deputy Chairman of the SETA and Chairman of Business, I know that we can count on each and every person to do their duty and that is why they were initially nominated to the National Council which is the Accounting Authority of the Services SETA still in place. Already a number of our members have taken action and I am most grateful for this.

I also too acknowledge the outstanding support and collaboration with the Labour Sector of the Services SETA where we have both jointly worked together in the best interests of an excellent organisation which provides benefits to learners, employers, employees and providers who are our stake-holders.

So let us do what has to be done as for good to prevail, good people must not remain silent.

Yours faithfully



JAMES McLUCKIE


copy to members of the labour caucus for information

Spotted in a training session...