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SETA Corruption Scandal: R13m Biometric System Never Functioned

Jul 21, 2025 · 2 min read

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By GlobalZa

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Investigation reveals payments continued for 18 months despite non-operational system

The Phantom Contract

A Sunday Times exposé has uncovered that the Construction Education and Training Authority (CETA) paid R13 million for a biometric learner management system that never became operational. Forensic evidence shows monthly payments continued for 18 months to a joint venture between Grayson Reed and another service provider.

Pattern of Corruption

OUTA CEO Wayne Duven revealed this follows an identical 2018 scheme at Services SETA involving R163 million. 'We're seeing the same playbook across multiple SETAs - inflated tenders, ghost deliveries, and whistleblower persecution,' Duven stated. The corruption network allegedly extends to insurance, construction, and education SETAs.

Leadership Vacuum

The scandal emerges as Higher Education Minister Dr. Nobuhle Kabani faces criticism for delaying appointments of new SETA board chairs. Parliament's portfolio committee has demanded urgent intervention as the 21 SETAs prepare to administer R27.8 billion in skills development funds next fiscal year.

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