Date: 08/03/2012
Source: The Department of Higher Education and Training
Title: SA: Nzimande: Briefing by the Minister of Higher Education and Training, at a meeting with the PWC of FETCEO, eThekwini

The Meeting we have had this morning arises out of discussions that have taken place between the Further Education and Training Colleges Employer Organization (FETCEO) of Kwa Zulu Natal and the MEC for Education, Mr Senzo Mchunu, where a number of issues came out. Some of the issues had also been brought to my attention. There was also an urgent request I received from members of the Provincial Working Committee (PWC) of FETCEO for today’s meeting.
By way of background ladies and gentlemen, FETCEO is registered as an employer organization with the Registrar of Labour Relations in the Department of Labour. The PWC consists of members of the FETCEO (Council members) and College Management. It is part of the constitutional structures of the FETCEO, and also manages the affairs of FETCEO in the Province, while at the same time providing leadership in relation to governance and issues of mutual interest in relation to Colleges. They have developed a programme to discuss issues of curriculum delivery, programme offering, funding and labour relations.
This is the first meeting I have held with this structure since the establishment of the Department, which is unfortunate as FETCEO is a crucial part of the stakeholder fraternity within the FETC Sector.
The following are issues were discussed this morning:
i) Migration of FET Colleges to the DHET: Legislation has been passed by parliament to this effect and will be signed by the President of the Republic of South Africa shortly. FET Amendment Bill hands over management of Colleges to the national department. This will bne followed by a Constitutional Amendment law to allow for the taking over of provincial functions by the DHET, and this includes responsibilities. In essence this means the running of the Colleges reverts to the DHET nationally. It is important to emphasise however that the function shift does not mean that the DHET will not consult with Provinces, municipalities and communities about matters relating to FET Colleges. These Colleges still have to respond to local economic and social priorities of the region so that they remain relevant to local developmental need.
ii) Some of the things that need to be done in relation to the migration relate to Governance which the DHET will take over immediately. Related to that, the filling in of posts is being prioritized. Provinces should stop making appointments without the DHET. Going into the future, we need to appoint Principals who essentially understand their role in relation to the National Skills Accord. The determination of posts and staff to be transferred to DHET will be handled sensitively as it has a number of dimensions to it. The Department will also conduct an audit of all staff in the FET Colleges.

iii) Matters relating to the funding of FET Colleges, with the key issue being the shortfall. In this regard the Department also wants to raise issue of other sources of funding. Apart from the funding from National Treasury, we are saying Colleges must engage with the SETAs to access the funding from the SETAs.It is incorrect that Colleges still do not access the funding of SETAs. The Department has also made available funding from the National Skills Fund which Colleges may access through the submission of bids, applying for Projects that can run into millions of rands.
iv) With regards to the recapitalisation of FET Colleges, the Department is looking for sources of funding this in the National Skills Fund (NSF), the PIC and other sources for infrastructure development. These will have to be driven from the centre for effective oversight and control. Capital investment planning is now a national focus area. I am of the view that the increase in funding for expansion will assist colleges in maintaining their plant and equipment. This funding is in the form of an expanded bursary allocation and NSF top up. The Department has also made additional funds available to the colleges via NSF. The principle additional value is 20% for NC(V), 100% N1-N3 (Engineering) and 30% N4-N6. This was extensively communicated to colleges earlier this year.
v) The filling of vacancies has become a very urgent matter, more particularly the position of the CFO as it cannot be that none of the Colleges in the province have CFOs when the NSFAS allocation to Colleges in the 2010-2011 financial period was increased to R3, 7billion. It is a serious problem to put in money without the requisite appointment of CFOs to manage and account for those funds efficiently. To this end the Department has made a proposal toSouth African Institute of Chartered Accountants (SAICA) nationally to work with us to capacitate and strengthen financial management in colleges. In the interim, SAICA will also provide CFOs to these Colleges for financial management and to also train finance staff with the required financial management skills. The process of appointing CFOs will commence by the end of April 2012.
vi) College registration has risen by 60 per cent this year. The challenge this has created in some colleges is one of capacity. Some Colleges have created a platoon system to manage this increase. In some colleges lecturers are resisting the appointment of new lecturers because they have become used to being paid overtime. The position of the Department on the issue of overtime payment for lecturers versus the appointment of new lecturers is that new teachers have to be employed. In instances where there is opposition from lecturers from employing more staff because they are making more money out of platooning and working overtime, this cannot be allowed to continue. This is a non-negotiable, and the Department will meet with all teacher-organisations to make this clear. Full time lecturers in terms of current regulations are appointed to work 35 hours per week. It is the intention to extend these hours to 40 hours per week as per the hours when a College opens and closes. Overtime can only be granted if there is sufficient proof that the College could not find additional staff to teach learners coming for part time classes or after hour classes. Every College should have a policy on overtime which is in line with the Basic Conditions of Employment Act. As this is an issue of mutual interest, it is advisable that the policy on staff utilization be finalized. The matter will be tabled at the FETC Bargaining Unit.
vii) There is also the issue where students are demanding that colleges refund them money from NSFAS when they have not used it to the full. Students seem to now regarding NSFAS as a grant that they are entitled to, and it’s is suspected that sometimes they will register for courses simply to claim NSFAS and then use it for non academic purposes. We will engage with youth and student organizations on this matter. If FET Colleges do not pay immediately they strike. There has to be a policy regulating NSFAS refunds. The answer to this is simple: There are no refunds. Any unutilized funds must be transferred back to NSFAS. Colleges are aware of this as standard procedure, and should inform students.
The Term of Office for some College Councils has come to an end, we will extend it for a period of nine months. If the Term of Office of any Council expires before the transfer of the function, the Term of Office must be extended for a period not exceeding 9 months to allow for a smooth transition to the new Act.
As soon as the Act is promulgated the DHET will establish Interim Councils utilizing the current governing council members pending the establishment of the new councils under the Act.
In the case of KZN, the Terms of Office expired last month (29 February), so the Minister is advised to request the MEC for Education to extend the Term of Office till September 2012 or until the completion of the appointment process by the DHET, whichever is the sooner.
All parties agreed that there will be ongoing consultation and discussion of the issues we discussed this morning.