1. With regard to the objectives and purposes of the Skills Development Act, Act 97 of 1998, what total amount has been paid by employers in skills development levies since the inception of the Skills Development Levy, National Skills Fund (NSF) and the implementation of the specified Act;
Employers have the direct relationship through the mandatory grant process. The NSF as a catalytic funder focuses on skills development across the value chain of SA and has a direct relationship with stakeholders and/or implementing agents such as Skills Development Providers, Government Departments, PSET institutions none of which pay a levy to the NSF.
2. what (a) total amount has been raised by the NSF in reliance upon the Act, in particular section 27, and (b) is the source of the funding in reliance upon section 27(2)(a) to (f);
The pilot project underway through the Presidency called the Presidential Youth Employment Initiative (PYEI) is the only source of additional funding and this has been included in the MTSF (through DHET).
Background
“Section 27 (1) of the Skills Development Act (SDA) states that the National Skills Fund is hereby established and section (2) further state that the Fund must be credited with:
Levies Act (SDL Act);
2 a) The total amount has been raised by the NSF in reliance upon the Act, in particular, section 27.
With reference to the Act and the question raised, the NSF was established in 1999 in terms of section 27 of the SDA without legal persona.
From that period of its establishment to the period of 2010, the NSF was placed under the Department of Labour (DOL) as a chief directorate /Directorate and the total amount that was raised by the NSF during this period was R 8 439 078 000.
In 2010-11 NSF was transferred to the Department of Higher Education and Training (DHET) and in 2011-12 the NSF was listed as Schedule 3A Public Entity in terms of the PFMA, retrospectively effective from 1 April 2012. From the period of 2011 to 2023 the total amount that was raised by the NSF during this period was R49 464 097 000.
In summary and in total considering the period when the NSF was in DOL and the NSF in the DHET, the NSF received a total amount of R57 903 175 000.
2 b) The source of the funding in reliance upon section 27(2)(a) to (f)
With reference to the section 27 of the SDA and the question raised, the NSF current main revenue sources are:
The NSF may also receive revenue from the following sources as per section 27 of the SDA (but this is not prevalent as NSF has not received any of the amount listed below):
With reference to the 20% of the skills development levies as contemplated in the Skills Development Levies Act, 1999 (Act 9 of 1999) (SDL Act) as per section 27 (2) (a), the NSF has accounted for R45 996 000 000.
With reference interest earned on investments contemplated in section 29 (3) of the SDA and as per section 27 (2) (d), the NSF has accounted for R6 789 000 000.
With reference to the funds received as a results uncommitted surplus from the SETAs that are transferred to the NSF in terms of SETA grant regulation 3(12) the NSF has accounted for R4 126 000 000.
With reference to section 27 (1) (f) “money received from other sources” / Other income the NSF has accounted for R 992 000 000 (for example transfers from DHET for special projects and
Finance income from advance payments to skills development programmes and projects)
3 a) Current value of the total amount raised.
The current value from 1 April 2023 to 31 Dec 2023 is the total of R4 152 000 000.
3b) The total monetary value of unspent skills development levies being held by NSF is R14,916 billion.
in terms of Section 29(3) of the SDA, the unexpended balance in the NSF at the end of the financial year must be carried forward to the next financial year as a credit to the NSF.
The unspent funds are currently invested investments held at the Public Investment Corporation (PIC) as per section 29 (2) of the SDA that state that Any money in the Fund not required for immediate use may be invested in accordance with an investment policy approved by the Director-General that complies with the requirements of the Public Finance Management Act and may be withdrawn when required.
The total value of the unspent skills development levies being held of R14 916 000 000 is intended to be utilised for:
The NSF in terms of its strategic plan and annual performance plan intends to support and respond to the National Skills Development Plan (NSDP)/MTSF/WP-PSET/NP-PSET and also responding to the other projects of national priorities by funding projects that are :
4. what is the total number of accredited qualifications that have been funded by the (a) skills development levies and (b) NSF;
The National Skills Fund has funded various programmes in relation to the Skills Development Act and National Skills Development Plan. The table below provides the reader with number of qualifications in the financial years 22/23 and 23/24.
Qualification |
22/23 |
23/34 |
Number |
Number |
|
Learnerships |
10775 |
10818 |
Apprenticeship / Artisans |
7071 |
5888 |
Bursaries (incl. Int) |
813 |
1426 |
In addition to the numbers above, as a value add included are learners trained in:
5. What are the reasons that the money, raised through levies on employers and other sources of funding, has not been spent on skills development
The NSF in terms of its strategic plan and annual performance plan intends to support and respond to the National Skills Development Plan (NSDP)/MTSF/WP-PSET/NP-PSET and responding to the other projects of national priorities by funding projects that are: