R600 00 per month in rent has been paid since 2024 despite employees never occupying the building.
Higher Education and Training Minister Buti Manamela is demanding answers from the Education, Training and Development Practices Sector Education and Training Authority (ETDP Seta) after a lease agreement scandal that has cost taxpayers R15 million.
The ETDP SETA reportedly went into a lease agreement for a building in the Johannesburg CBD for R600 000 rental per month, but staff cannot use this building because it has been declared hazardous.
According to media reports, staff has been working from home since July 2024 when the lease was signed.
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SKG Africa, the company that received the tender for the lease, is allegedly known to be leasing more than 15 buildings to government departments and state agencies making over R40 million a month from the state.
A law firm has since been appointed to investigate the tender processes that led to SKG Africa receiving this contract.
Manamela seeks report over Seta lease saga
In a statement on Sunday, Manamela’s spokesperson Matshepo Seedat said the allegations raised serious concerns relating to governance, building compliance, and the potential implications for public funds.
“The minister has therefore requested an urgent report by the department, which is engaging the ETDP Seta.
“The report should establish the full facts surrounding the procurement process, lease agreement, and the circumstances that led to the non-occupation of the premises.
“The report should also address the financial exposure of the Seta, the health and safety considerations affecting staff, and any investigations currently underway relating to the matter,” said Seedat.
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‘Governance failure’
Seedat added that Manamela remains concerned about the safety of the ETDP Seta staff and he is worried about the manner in which public funds have been used.
“Any governance failures or irregularities identified will be dealt with in accordance with the applicable laws and regulations.
“The department will assess the report and advise the Minister on the appropriate course of action, once all relevant facts have been established.
“The ministry will only communicate on the matter once the report has been received, studied and an appropriate way forward has been determined,” she said.
Since coming into office in July 2025, Manamela has pledged to resolve governance matters concerning Setas.
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