Buti Manamela overrules Inseta CEO suspension as governance crisis deepens

A governance storm has erupted at the Insurance Sector Education and Training Authority (Inseta) after higher education and training minister Buti Manamela dramatically intervened to overturn the suspension of the entity’s CEO, Gugu Mkhize, while simultaneously ordering multiple investigations into allegations of governance failures, unpaid student allowances and institutional instability.

In a sharply worded letter dated June 8 to Inseta board chairperson Refilwe Matenche, the minister accused the accounting authority of acting outside its powers when it suspended Mkhize on June 3 without first consulting him as executive authority.

The extraordinary intervention now lays bare deepening tensions inside one of the country’s key sector education and training authorities, with allegations of governance dysfunction, financial risk, staff intimidation and operational paralysis increasingly spilling into the public domain.

“The precautionary suspension of the CEO on June 3 2026 was effected without consultation with me as executive authority,” Manamela wrote.

“The accounting authority is directed to lift the pre-cautionary suspension and reinstate the CEO with immediate effect.”

While the minister stressed that his directive did not deal with the merits of the allegations facing the CEO, he nevertheless delivered a scathing assessment of the board’s handling of the matter, warning that the suspension process itself may have lacked legal foundation.

The minister revealed that though the board had previously submitted Mkhize’s conditions of service to the department, those conditions had never formally received ministerial approval — potentially rendering invalid the very framework relied upon to suspend Mkhize.

“The conditions of service you relied on in suspending the CEO are invalid without my approval,” the letter states.

At the same time, Manamela made it clear that serious concerns surrounding both Mkhize and Inseta’s governance structures remain unresolved.

The minister disclosed that as far back as October 2025, he had instructed the accounting authority to investigate allegations involving Mkhize and the entity and submit a report with corrective recommendations — which, he says, was never provided.

He further noted that the board had failed to satisfy conditions linked to the CEO’s appointment, including the completion of background verification processes.

Now, in a move likely to intensify scrutiny on the institution, Manamela has referred the matter to the National Skills Authority (NSA), which has been tasked with conducting an investigation and reporting back within 90 working days.

“The NSA report will inform my determination on the outstanding conditions of appointment and any further action required,” the minister warned.

But the governance crisis appears to extend far beyond executive tensions.

The minister also raised alarm over delayed payments linked to the Insurance Sector Student Fund bursary programme, affecting at least 263 beneficiaries across several institutions.

In one of the letter’s most pointed passages, Manamela said the delayed payments were “unacceptable” and threatened the academic continuity of affected students.

“The delayed payment of Insurance Sector Student Fund allowances, affecting 263 beneficiaries across multiple institutions, is unacceptable and places the academic continuity of students at risk,” he wrote.

The board has now been ordered to provide a detailed report and action plan within 15 working days explaining the status of outstanding payments, whether all students have been paid in full, and what disciplinary or corrective action may be taken against officials responsible for the delays.

I am equally concerned by reports that a staff member was prevented from delivering this memorandum and may have been subjected to disciplinary action.

—  Buti Manamela, higher education and training minister

The letter also reveals mounting concern over ongoing litigation involving the Graduate Institute of Financial Sciences (GIFS), which the minister says poses significant financial and reputational risks not only to Inseta, but also to the department and ministry.

Manamela directed the accounting authority, together with the department, NSA and the Quality Council for Trades and Occupations, to urgently develop a comprehensive strategy to deal with the litigation.

That strategy must include a review of legal opinions obtained, an assessment of litigation exposure, a proposed settlement strategy and confirmation that independent legal counsel without conflicts of interest has been appointed.

The minister also demanded updates on the status of court proceedings and ordered interim and final reports within strict deadlines.

Beyond the legal and financial concerns, the letter paints a picture of an institution increasingly consumed by internal turmoil.

Attached to the minister’s correspondence was reportedly a staff memorandum raising concerns about “institutional destabilisation, governance conduct and the treatment of employees”.

Manamela said he was particularly troubled by allegations that a staff member may have been prevented from delivering the memorandum and could have faced disciplinary action as a result.

“The memorandum raises serious concerns regarding institutional destabilisation, governance conduct and the treatment of employees,” wrote Manamela.

“I am equally concerned by reports that a staff member was prevented from delivering this memorandum and may have been subjected to disciplinary action.”

The board has now been instructed to provide a factual report explaining the circumstances surrounding the staff engagement, whether disciplinary measures were instituted, and whether any official attempted to block the memorandum from reaching the minister.

In another sign of broader instability, Manamela also ordered the finalisation of outstanding board vacancies within 60 days and announced that the department would facilitate governance orientation training for the accounting authority together with the National Skills Authority and National School of Government.

While framed diplomatically as part of broader Seta strengthening efforts, the intervention nonetheless signals growing concern within government over governance standards at Inseta.

For now, Manamela’s directive effectively restores Mkhize to office while opening the door to a potentially far-reaching investigation into the entity’s governance, operational conduct and financial management.

And with multiple reports now due to the minister within days and weeks, the unfolding conflict inside Inseta appears far from over.