Higher Education and Training Minister Blade Nzimande said on Thursday that there was no intention to "kill" excellence at universities as his department contemplates a new funding framework for tertiary education.

"We have no such intention to kill what is excellent in the system," Nzimande said in his budget speech delivered to Parliament's education committee.

"What is good in the system must be protected and strengthened, but it must be accessible to all."

The department is drafting the terms of reference for the appointment of a task team to review the funding framework of universities.

Academics and opposition parties have raised concerns that the new model may divert resources away from university research projects.

Nzimande said that he was particularly concerned about "addressing the challenges faced by historically disadvantaged universities".

This would receive his dedicated attention and it was this funding formula would have to respond to.

"The review of the funding framework for universities will focus on the special situation of historically disadvantaged universities and infrastructure needs," he said.

Universities would receive R17,5-billion, while R1,9-billion had been allocated to the National Student Financial Aid Scheme in the department's budget, Nzimande said.

Another R3,265-billion had been allocated in infrastructure funds to universities for the 2010/11 and 2011/12 financial years to help increase production of graduates in engineering, life and physical sciences, teacher education and health sciences.

The department would work with the department of science and technology to examine gross national investment in research and its distribution across sectors and institutions.

Some R431-million had been allocated for teaching development grants to universities to "improve graduate outputs" while another R185-million was allocated for "foundation provision" for students who needed "scaffolding".

Work towards the establishment of universities in Mpumalanga and the Northern Cape would also continue this financial year.

"We are appointing two task teams with representatives from these provinces to explore appropriate university models for the needs of these provinces and come up with concrete proposals and time lines," Nzimande said.

A five year strategic plan had been developed "to systematically strengthen the skills and human resource base.

The department, which has a budget of R32,144-billionn, would spend R8,4-billionn on Sector Education and Training Authorities (Setas) and the National Skills Fund and R3,8-billion on Further Education and Training (FET) colleges.

Nzimande, who takes responsibility for the NSF on April 1, would "immediately institute processes" to address concerns raised "repeatedly" by the Auditor General and many frustrated beneficiaries.

"We will strengthen the capacity of the NSF to monitor and evaluate the impact of the disbursements made and we will address the problem of under-expenditure that has historically dodged the fund," he said.

He said that Setas had been successful in registering 17 228 artisans for training in 2009, while 109 351 workers completed training in scarce and critical skills through learnerships, apprenticeships and other learning programmes.

"We will increase the numbers and the quality of skilled artisans, particularly in priority trades, through a synergy or strengthening FET colleges, Seta's work and business initiatives," he said.

Nzimande promised to clamp down on corruption in the department.

He said that there was a danger that all the department's resources would go "into the pockets of tenderpreneurs".

"We are sending a message that we are actually, as this department, going to be fighting corruption very hard and we are going to be uncompromising on that."

Council members, Student Representative Councils and staff could not be associated with tenders or service providers in the institutions they served, Nzimande said.

"You can't be sitting on council, having inside information and then be associated with a service provider. It is corrupt. So it is a no-no. We are going to deal with this firmly."

He said that he would institute a management review of tender procedures at all universities this year.