Neelam Rahim | neelam@radioislam.co.za
3-minute read
22 July 2025 | 12:40 CAT

R163 million missing in learner stipends? OUTA demands accountability as corruption allegations rock Services SETA. Whistleblowers and court battles reveal a disturbing trail of ghost contracts and inflated tenders.

A damning investigation by the Organisation Undoing Tax Abuse (OUTA) has uncovered staggering levels of corruption within the Services Sector Education and Training Authority (Services SETA), revealing a years-long web of tender manipulation, ghost contracts, and inflated prices, all at the cost of South Africa’s unemployed youth.

Speaking to Radio Islam, OUTA CEO Wayne Duvenhage described the situation as “corruption on steroids.” He detailed how the probe began in 2018 when “three whistleblowers came in to show us what was going on with regards to tender manipulation, irrational expenditure, inflated costs, and irregular supply chain management.”

OUTA discovered that many contracts awarded by the SETA were either for services that were never delivered or grossly overpriced. Tenders were manipulated, evaluation processes interfered with, and suppliers were handpicked despite clear red flags. Among those implicated was Andile Nongogo, who, after leaving Services SETA, was appointed CEO of NSFAS, where similar irregularities followed.

“We saw the same companies, same people, following them to NSFAS,” Duvenhage noted. “This is a cesspool. A whole network of corrupt and fraudulent activities that have been taking place for years.”

Companies like Grayson Reed, Five Star Communications, and Coinvest repeatedly appeared across various SETAs, raising alarm bells. OUTA received recordings implicating senior officials in inappropriate dealings with these entities. Despite reporting the findings, whistleblowers and OUTA itself faced legal threats and intimidation.

In a disturbing development, Duvenhage revealed that a Services SETA employee suspected of being a whistleblower was recently dismissed without a hearing. “This is intimidation. You can’t just fire someone without due process. This is the brazen conduct we’re dealing with.”

OUTA is calling for the blacklisting of implicated companies, criminal charges against responsible individuals, and a firm stance from government. “We need ministers and departments to stop protecting corrupt individuals and start enforcing accountability.”

As South Africans grapple with rising youth unemployment, OUTA’s findings underscore the betrayal of a generation meant to benefit from skills development programmes. The time for transparency and justice, OUTA insists, is long overdue.

Listen to the full interview on Your World Today with Mufti Yusuf Moosagie and Wayne Duvenhage.