2.2 Construction SETA Mr T Mhambi: Administrator led the presentation which highlighted the following: . Construction SETA was placed under administration by the Minister of Higher Education and Training with effect from the 31 March 2011. . In the past six year, the SETA was not able to achieve its modest targets. Mandatory grants were not fully paid to large companies and this negatively affected workplace training in the construction sector. The Adult Basic Education and Training (ABET) programme had been a failure in the construction sector since many employees rejected it. Most employees in the sector had been there for a very long time and Recognition of Prior Learning (RPL) would have been a better option. . The SETA had more than 300 projects worth R300 million that were not successful. It emerged that 80% of the projects were fraudulent and R214 million was defrauded. The money of the SETA was not utilized for good purposes. . Poor corporate governance was the main reason for the poor performance of the SETA. Projects were fraudulently managed and the previous board did not take measures to correct the situation. Upon arrival of the new accounting authority, there were no staff personnel in the projects unit of the SETA. . The new accounting authority had changed the strategic plan of the SETA since it did not respond to the requirements of the National Skills Development Strategy (NDSS III) and the new strategic plan would be submitted at the end of June 2011. . The SETA had a total budget of R313 million for the current financial year. Lack of levy information led to an unpaid amount of R47 million for mandatory grants at year ends and the grants would be paid by 30 June 2011. The surplus for the current financial year was R187 million.