3. The following formed part of the discussion Theta It emerged that during the year under review Theta overcommitted its funds and as a result the SETA incurred a shortfall in its debts. It was noted with concern that the Seta underperformed against its targets especially on new venture creations, critical skills programmes and Adult Education and Training (AET) while administration expenditures were extremely high. The Committee wanted to know the reasons for the significant decline in the skills funding from the National Skills Fund (NSF) and mandatory grants during the year under review. It was noted with concern that remuneration of employees in the tourism hospitality sector was below average compared to other sectors. The Committee indicated that lack of transformation in the tourism hospitality sector is unacceptable and the Seta needs to prioritise transformation since it's a national priority of government. The Committee was extremely concerned with the maladministration and discrepancies in supply chain management discovered by the forensic audit. It emerged that the Theta board were in disagreement with the forensic audit and sought for validity of the findings. Thetha was requested to explain its mechanism in place to deal with the findings of the forensic audit. The Committee was concerned that Theta operated without a valid license, it has no regional offices for easy access to people in poor rural areas, incurred a bad debt and all of these challenges reflected a state of crisis in the affairs of the Seta.