By Odwa Bafana Mkentane
The Organisation Undoing Tax Abuse (OUTA) says its preliminary investigation has uncovered serious procurement and governance concerns at the Insurance Sector Education and Training Authority (INSETA). The organisation is questioning a dramatic increase in the authority’s student fund budget, the appointment of a service provider, and delays in bursary payments that are affecting hundreds of students.
Speaking to VOC News, OUTA Senior Project Manager Rudie Heyneke said the organisation had already been scrutinising INSETA Chief Executive Officer Gugu Mkhize before launching its latest investigation.
“Mkhize, the CEO of Insurance SETA, is a person of interest to us,” Heyneke said. He confirmed that OUTA has filed a High Court review application challenging Higher Education and Training Minister Buti Manamela’s decision to reappoint Mkhize for another term.
Heyneke said OUTA intensified its investigation after learning that Mkhize had been suspended earlier this year over allegations linked to the Insurance Sector Student Fund.
According to OUTA, the fund was established in 2021 and initially managed internally. However, the organisation became concerned after identifying a substantial increase in its budget for the 2024/2025 financial year.
“The first few years it appeared that Insurance SETA managed these funds internally. Then, in the 2024-2025 financial year, we saw a massive increase in the budget of this fund,” Heyneke said.
He noted that the budget increased from less than R20 million in previous years to approximately R443 million, describing the sharp rise as “a red flag”.
While welcoming increased funding for student bursaries, Heyneke questioned how the funds were sourced and whether they reached their intended beneficiaries.
“The more important question is, where did the money go? Wasn’t it paid out to deserving students, or did some of the money disappear along the way?” he asked.
OUTA stated that its investigation is continuing as it seeks greater transparency and accountability over the management of public and private funds allocated to student support.
Photo: VOCfm
