Skills Development Act, 1998 (Act No. 97 of 1998)

Regulations

Standard Constitution of SETA Regulations

22. Taking Over Administration of SETA
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(1)The Minister may, in terms of section 15 of the Act, after consultation with the NSA and the Accounting Authority, if any, by a notice in the Government Gazette, direct the Director-General to appoint an Administrator to take over the administration of the SETA or to perform the functions of the SETA, if—
(a)the SETA fails to perform its functions;
(b)there is mismanagement of the SETA's finances;
(c)the Accounting Authority's membership no longer substantially represents the composition contemplated in section 11 of the Act;
(d)the SETA has failed to comply with its SLA; or
(e)that the Accounting Authority has failed to comply with an instruction by the Minister in terms of section 14A of the Act.

 

(2)The Director-General must by notice in the Government Gazette appoint an Administrator and, in that notice, the Director-General—
(a)must determine the powers and duties of the Administrator, which may include the Administrator's performance of the Accounting Authority's functions in terms of the PFMA;
(b)may suspend or replace one or more of the members of the Accounting Authority for any reason contemplated in subitem (1);
(c)may suspend the operation of the SETA's constitution; and
(d)may direct the transfer of all or some of the funds in the SETA's bank accounts to the National Skills Fund.

 

(3)If a notice is published in the Government Gazette in terms of subitem (2), the Minister may—
(a)amend the constitution in question;
(b)reinstate any of the members of the Accounting Authority; and
(c)withdraw or amend any provision of the notice referred to in subitem (2) and may impose such conditions as may be appropriate in order to ensure that the SETA resumes the performance of its functions.

 

(4)The Minister may act in terms of subitem (1) without consulting the NSA and the Accounting Authority if there is financial mismanagement of the SETA and  the delay caused by such consultation would be detrimental to the SETA's capacity to perform its functions.