By Siphokazi Vuso
The Black Management Forum (BMF) has raised concerns over allegations of mismanagement of money intended for the National Skills Fund (NSF), warning that such discrepancies threaten the economic growth and development of small enterprises.
This comes as the Special Investigating Unit (SIU) has been tasked with investigating allegations of serious maladministration and improper or unlawful conduct by officials or employees of the Department of Higher Education and Training, and the mismanagement of funds allocated to the NSF.
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As part of the investigation, 10 projects are being probed, with service providers distributed across KwaZulu-Natal, the Eastern Cape, the Western Cape, Limpopo and Gauteng.
SIU spokesperson Kaizer Kganyago said the investigation would cover unlawful conduct by suppliers, service providers and others from 1 January 2013 to 28 March 2025, as well as related matters before or after this period.
“In as far as the National Skills Fund is concerned, Proclamation 253 of 2025 authorises the SIU to investigate allegations of serious maladministration, improper and unlawful conduct by officials or employees of the Department of Higher Education and Training and the possible mismanagement of funds allocated to the National Skills Fund,” Kganyago said.
BMF managing director Monde Ndlovu said the misuse of funds only exacerbated the challenges faced by SMMEs.
“There is always a concern when funds meant for SMMEs are looted or misused. These funds are supposed to benefit businesses and deliver positive outcomes, but when these allegations arise, it sets back the goals we are working towards. SMMEs are a critical part of the economy and they need more attention from both the government and the private sector to ensure their survival,” he said.
Ndlovu also raised concerns about the gaps in the oversight and administration of funds allocated to SMMEs.
“The allegations highlight gaps in oversight and the administration of these funds. The government needs to focus more on how administrators are appointed and held accountable because they are the people who manage these funds, as there are processes that are not fully understood or not deliberately followed once these allegations come to the surface,” he said.
“A number of SMMEs shut down within a few years due to challenges such as limited access to markets, capital, resources and competition. Ultimately, what we want to see is SMMEs surviving and growing. To achieve this, we need a more holistic approach that addresses their challenges in a comprehensive way.”
South African Small and Medium Enterprises Association spokesperson Howard Johnson said the allegations were deeply concerning.
“The NSF plays a critical role in funding skills development initiatives that many SMEs rely on to upskill their workforce and gain access to trained professionals. If funds have been mismanaged or looted, it means that many deserving businesses and entrepreneurs have been denied opportunities to develop the skills necessary to grow and contribute to the economy,” Johnson said.
He urged the authorities to ensure that the investigation led to accountability and reforms that restore trust in the NSF.
“It is essential that future funding allocations prioritise transparency, accessibility and the needs of SMEs to maximise economic and employment benefits. We also call for increased stakeholder engagement, including input from small businesses, to ensure that the NSF fulfils its mandate effectively moving forward,” Johnson said.
