The Constitution of the Republic of South Africa (Act 108 of 1996) recognizes that legislatures have a critical role to play in overseeing and monitoring the performance of Departments and Public Entities. Section (65) of the Public Finance Management Act requires that Ministers table the Annual Reports for Departments and Public Entities for which they are responsible.

The date for tabling of Annual Reports of Public Entities and Departments is 30 September annually. The Minister tabled the Annual Reports of: South African Council for Educators, South African Qualifications Authority, Umalusi Council for Quality Assurance in General and Further Education and Training, Council on Higher Education and National Student Financial Aid Scheme.

Based on the referrals, the Portfolio Committee on Education invited six entities. The hearings were scheduled for 11-12 October 2005. Entities that participated in the hearings were:

2. UMALUSI: Council for Quality Assurance in General and Further Education and Training

The Chief Executive Officer, Dr Peliwe Lolwana briefed the Committee. The main focus of the briefing was on lack of financial resources to execute its mandate, the appointment of New Chairperson, moderation and monitoring process, evaluation and accreditation unit, challenges and way forward. While they were proud to execute most of the functions stipulated in the General and Further Education and Training Quality Assurance Act of (No 58 of 2001), lack of financial resources and the hiatus caused by the uncertainty around the outcomes of the review of the National Qualifications Framework stalls progress.

She said that if these challenges are not addressed, it would compromise the credibility of the ETQA in the general and further education and training sectors.

2.1 Appointment of New Chairperson

During the financial year under review, saw the appointment by the Minister of Mr. John Pampallis the Director of the Centre for Education Policy Development taking over from Dr Cassius Lubisi who moved to the National Department of Education. The year was significant due to the fact that the processes for the quality assurance assessment had been significantly improved. The research that was conducted to assess the standard of the Senior Certificate Examination had enabled the Council to strengthen the processes.

2.2 Moderation and monitoring process

While attention was paid to the maintenance and improvement of the moderation and monitoring processes relating to the Senior Certificate, much was put into Adult Education and training and vocational education and training to establish the broader framework for the quality assurance of assessment. In assuring the quality of assessment for the Senior Certificate, they moderated about 2 600 question papers. Monitors were deployed to monitor the conduct of exams as well as the marking and processing and capturing of results. Moderation of exam papers uncovered irregularities in the results of the Mpumalanga Senior Certificate examinations. The discovery resulted into them (Umalusi) conducting an investigation [that was conducted]* in various phases and stretched over more than two months. A team of twenty independent specialists assisted them in the probe resulting into withholding results of 843 candidates.

2.3 Evaluations and Accreditation Unit

The Evaluation and Accreditation Unit developed into a fully-fledged functional entity. The unit undertook provisional accreditation of independent schools, further education and training colleges and adult basic education and training providers. Provisional accreditation were accredited to 127 Further Education and Training Colleges and 72 ABET providers on a three year accreditation. The research and development unit started to function and a three year research plan was developed. A total of nearly 700 000 certificates were issued which included Senior, National, N3 and the General Education and Training certificates. A new certificate was designed replacing the old South African Certification Council.

In terms of section 38 (1) of the Public Finance Management Act, entities should implement effective, efficient and transparent financial management and internal control systems. The financial performance of Umalusi resulted in a net surplus of R5,1 million due to the additional R5 million received from the Department on the 23 March 2005. Their spending is within allocated budgets and strategic priorities.

2.4 Challenges

Even though the spending is within allocated budget and strategic priorities, they are faced with the following challenges, uncertainties clouding the future role and finances of the entity need to be solved; non-continuation of the accreditation process due to lack of available funds and lack of finding an acceptable and accessible language in the conceptualization of standards.

2.5 Way forward

Even though there are challenges hampering its progress to perform, they are advancing their understanding of the strengths and weaknesses of the bodies they are assessing. New quality assurance of qualifications and curriculum unit had been developed to design a criteria and procedures within which it would conduct its function of monitoring the adequacy and suitability of qualifications and curriculum and the soon to be implemented new National Senior Certificate as well as the Further Education and Training and Vocational Certificates are receiving urgent attention.

3. Council on Higher Education

The Chief Executive Officer of the Council on Higher Education, Prof Saleem Badat briefed the Committee. The main focus of the briefing was on responsibility of CHE, the highlights and challenges facing the institution.

3.1 Advising the Minister at his/her request or proactively on all policy related matters relating to higher education.

The advice focused on aspects of Distance Higher Education in South Africa; student enrolment planning in Public Higher Education: minimum admission requirements for Higher Certificate, Diploma and Bachelor's Degrees, the Higher Education Qualifications Framework and the Ministry's Draft Code for Cross Border/Transitional Delivery of Higher Education programs

3.2 Assuming executive responsibility for quality assurance within Higher Education and Training, including program accreditation, institutional audits, program evaluation and quality promotion and capacity building.

On its own initiative on HE issues in providing policy advice the advice focused on GATS and its implications for Higher Education and Government Regulation, institutional autonomy and academic freedom.

3.3 Monitoring and evaluating whether how and to what extent and with what consequences the vision, policy goals and objectives for higher education are being realized, including reporting on the status of South African education The appropriate shape and size of the HE system, including its desired institutional configuration, the advice focused on aspects of Distance Higher Education in South Africa and student enrolment planning in Public Higher Education.

3.4 Contributing to developing higher education, giving leadership around key national and systematic issues. Advising the Minister in particular on the new funding arrangements for HE, the advice focused on Commissioning of investigation into financing of Higher Education Institutions.

3.5 Consulting with stakeholders around higher education and formulating advice for the Minister which included ongoing collaboration with Department of Education and South African Qualifications Authority regarding Higher Education Management Information System in relation to CHE databases for monitoring and quality assurance.

3.6 Finances

For CHE to carry out its five mandated areas, an amount of R18 million had been set aside. In terms of section 38 (1) of the Public Finance Management Act, entities should implement effective, efficient and transparent financial management and internal control systems, CHE achieved its seventh unqualified report from the Auditor-General and this was achieved by an all Black-women team.

3.7 Challenges facing CHE

Five strategic areas, which are regarded as priority if quality in higher education would be achieved, were; Increasing investment in National Student Financial Aid Scheme; Improving learning and teaching of previously disadvantaged students: Extending and deepening the curriculum innovation and renewal and restructuring that is needed: Mobilizing and securing additional and adequate finances in producing the next generation by equipping academics to deal with new generation of students and; Capital infrastructure to be improved to equip and advance the intellectual prowess of academics in producing the quality of students and attracting young black women to institutions.

4. South African Qualifications Authority

The Chief Executive Officer of SAQA, Mr. Samuel Isaacs briefed members of the Committee. The main focus of the briefing was on overall highlights and challenges facing SAQA, standings and settings, quality assurance, national learner records database, research and communications and challenges facing SAQA.

4.1 Overall highlights

The overall highlights of the financial year under review were: SAQA successfully utilized the Joint Implementation Plans: they and IEC signed a JIP agreement to generate qualifications and unit standards for various aspects pertaining to elections; they developed the qualifications and unit standards under the auspices of the SGB for Democracy, Human Rights, Peace and elections and through the auditing of twenty ETQAs the goal of quality education and training was supported and the findings of the audit reports showed a substantial improvement nationally in quality management systems.

4.2 Standards and settings

SAQA generated and registered unit standards and qualifications that were nationally recognized and internationally comparable; a major achievement saw the registration of more qualifications and unit standards in 2004 than any other year combined; it registered standards and qualifications that were responsive to the needs of the economy under Human Resource Development Strategy, the national skills development strategy and the growth and development summit targets.

4.3 Quality Assurance

It is the South African Qualifications Authority's responsibility to guarantee quality qualifications for a learning nation and foster a culture of quality qualifications in education and training by means of, quality auditing of ETQAs to determine the extent to which they comply with their statutory obligations; accreditation of Education and Training Quality Assurance bodies (ETQAs) to ensure the quality of delivery of specific qualifications and unit standards and the monitoring of the ETQAs to ensure continuous improvement of the processes that deliver quality qualifications

4.4 National learner records database

The National Learners Records Database manages SAQAs comprehensive database of learner achievements

4.5 Research and communication

SAQA mooted the idea of reviewing progress in the development and implementation of the NQF. The first cycle of the Study was completed and the findings were published as Report 1 establishing criteria against which the progress of NQF was measured: the establishment of the NQF regional forums was a big step in support of the advocacy and communication of the NQF, SAQA had supported the harmonization of qualifications in the SADC region it assisted in the development of the concept paper on the Regional Qualification which was approved by SADC Integrated Council of Ministers in June.

4.6 Challenges facing SAQA

Even though SAQA is able to implement its Constitutional obligations, it faced the following challenges, of moving from compliance to performance, the lack of coherent policy development and implementation and finalization of the NQF review and ensuring appropriate funding.

5. South African Council for Educators

The Chief Executive Officer, Mr. Rej Brijraj briefed the Committee. The main focus of the briefing was on finances, service delivery, organizational structure, levy increases, information and communication technology, and action plan for 2005/06.

5.1 Finances

The income for the financial year 2004-2005 amounted to R11 million and was made up of education levies at R2 per month per educator. SACE experienced a surplus amounting to R772 281 mainly due to the delay in the appointment of the new Council. Out of the R11 million allocated, R6 million included paying for the legal expertise required for code of conduct activities, data capturers for registration and research capacity for professional development. The R5 million that remained was mainly for administration costs relating to meeting expenses.

5.2 Service delivery

The three main areas of delivery as per its mandated in the SACE Act 2000 are registration of educators, professional development and ethics. 10 264 educators were registered of which 3 132 were provisionally registered during 2001/2. By the end of 2003-2004 financial year, 464 959 were registered of which approximately 18 000 were provisional.

In its quest to promote professional development, the professional development portfolio (PDP) and policy formulation continued in the continuous professional teacher development. It processed 60 complaints against educators for the year under review. Three educators were struck off the register, one was suspended and others escaped with lesser punishment. One case came under the spotlight where it was alleged that SACE "slapped" an educator on the wrist for raping a 13-year girl.

To remedy unethical conduct, the Council conducted workshops, networked and trained educators. The Ministry requested the Council to conduct more workshops on the ethics of the profession in respect of corporal punishment and to scrutinize the exam fraud.

To enhance service delivery, a 24-hour help line (012) 663-0419 and a complaints suggestion box had been established. Lifts facilities had been installed to assist physically challenged visitors.

5.3 Levy increase

The levy increase had been delayed. Council is still considering increasing the levy from R2 to R4. Once that had been secured it would be in a position to deliver optimally.

5.4 Way forward 2005/06

To improve the register update including verification and completion; to improve advocacy and outreach regarding ethics in the profession and processing of priority cases: ensure professional development of teachers and initiatives to ensure that all educators are able to track their professional growth in an organized way; systematize professional development of educators to ensure that programs provided by providers are evaluated: ensure that suitable programs and activities are advocated and ensure that educator's achievements are recognized, recorded and rewarded.

6. Education, Labour Relations Council

The Chief Executive Officer Mr. M Govender, briefed the Committee. The main focus of the briefing was on service delivery, dispute resolution, disputes per province, case-load per province, negotiations, finances and research.

6.1. Service delivery

For the past 11 years, they contributed significantly towards the development and delivery of quality public education. To achieve delivery of quality education, the core business of ELRC, was to promote the maintenance of labour peace in the public education through dispute prevention and resolution. By providing negotiations and consultation on collective bargaining both provincial and nationally.

6.2 Dispute resolution

The primary function of the Education Labour Relations Council is to resolve disputes in the Educator sector. And to maintain and promote labour peace, prevent and resolve labour disputes and to conclude and enforce collective agreements. During the financial year under review, a total of 671 disputes were referred to the Council. Of those that were referred, 467 were successfully dealt with through conciliation and arbitration, 160 cases are still being processed.

6.3 Number of disputes per province

According to statistics provided, KwaZulu-Natal tops the list of disputes followed by the Western Cape Province.

6.4 Case load per issue

In terms of disputes statistics per issue in the year under review almost 60% of disputes referred were about unfair labour practice, such as promotion, demotion, benefits, suspension and training.

6.5 Negotiations

Through the process of negotiations, the national collective agreements had been successfully concluded resulting into major changes in the lives of educators in the public education sector.

6.6 Finances

ELRC generates funds from the levies, revenue, operating surpluses collected.

6.7 Levies

The total levies collected amounted to R13.5 million as compared to R15.6 million the previous year. The decrease of R2 million was as a result of the decrease in levies per educator that came into effect in the middle of the previous financial year.

6.8 Revenue

The amount of revenue collected amounted R19.8 as opposed to R17.3 the previous financial year. An amount of R6.3 million was transferred from the reserves to meet the budgetary requirements.

6.9 Operating surplus

The amount of operating surplus was R3.7 million. This surplus is as a result of the postponement of some capital expenditure to the next financial year.

6.10 Research

During the financial year under review, meaningful research concerning "determinants of supply and demand" and "post provisioning norms and educator workloads" had been initiated. The outcome of this research would serve to inform and guide stakeholders on the necessary action that needs to be taken to enhance service delivery of quality education. The research is not exhaustive in itself. The report found a high prevalence of HIV among educators, which was of great concern as they have the responsibility to teach life skills to learners to prevent HIV infection. The report found that educators living in rural areas were more likely to be HIV positive than those in urban areas due to mobility and migration of educators. Findings of HIV/AIDS prevalence study among educators per province were as follows:

• Provinces with the highest HIV prevalence were, KwaZulu-Natal and Mpumalanga that had an HIV prevalence of 20%.

• Provinces with more than 10% but less than 19% were Eastern Cape, Free State and North West HIV prevalence was more than 10% but less than 19%.

• Provinces with HIV prevalence under 10.5% were Gauteng, Northern Cape and Western Cape

6.11 Challenges facing ELRC

The inability of provincial departments to pay temporary teachers in time thus resulting into teachers marching; absenteeism by educators at schools, lack of implementation of the IQMS resulting into teachers not rewarded and assessed and the role of school Principals needed to be reviewed.

7. National Student Financial Aid Scheme

The Chief Executive Officer, Mr. Allan Taylor briefed the Committee. The main focus of the briefing was on; improved levels of allocations, increased collections, improved communication with stakeholders, formalization of Human Resources structures and administration and the audit report.

7.1 Improved levels of allocation

The levels of maximum award allocations for the previous year 2003/04 was R20 000, and improved to R25 000 for the financial year under review with an interest rate of 10.4% decreasing to 7%. The CEO said that the aim is to achieve a maximum award equivalent to the national average full cost of study.

7.2 Increased collections

The awards value for the previous year was R893.7 million and for the financial year under review the awards value amounted to R985.5 million resulting into an increase of 10%. The recovered funds in the previous year was R211 million and in the 2004-2005 financial year increased to R263 million resulting into an increase of 24.6%. The CEO said that for 2005/06 financial year they expect to give R1.2 billion in the form of 120 000 awards.

The increase is due to an additional R223 million received from Treasury for the financial year 2005/06.

7.3 Improved communication with stakeholders

The average monthly recoveries have increased significantly. As at Mar 2003, the average monthly recovery was R13 million resulting into an increase of 39%. As at March 2004 the recovery rate was R17.3 million resulting into an average percentage of 34%. As at March 2005, the average monthly recovery was R20.4 million resulting into an average percentage of 18%. This prompted the fund to continue to implement improved loan recovery strategies resulting in improved collections.

7.4 Formalization of Human Resource structure

Key structural achievements were achieved. A Deputy Chief Executive Officer, an Information Analyst including research, a Human Resource Manager, Communication Officer and Finance Compliance Officer were appointed. The Chief Executive Officer said that in their advocacy programs they are considering to use Members to advocate NSFAS at their constituencies. He will send each Member a number of brochures. The Secretary was tasked to provide the Chief Executive Officers with a list of their constituency officers.

8. Committee Observations

Based on the presentation made by the department and its public entities on 2004/05 annual reports and financial statements ending 31 march 2005, the committee has observed and noted that:

8.1 Umalusi

Despite the progress reported by Umalusi during the financial period under review, the Committee was concerned with the reasons that render Umalusi unable to perform its Constitutional obligations due to limited financial resources; the continued uncertainty around the outcome of the review of the National Qualifications Framework and the continued operation of non-accredited providers.

8.2 SACE

Despite the progress reported by SACE, the Committee was concerned by the unresolved alleged rape case of one educator. Particularly the continuous employment of the accused and the plea bargain entered with SAGE. In the view of the Committee it defeats the mission and vision of the Council.

8.3 SAQA

Despite the progress reported by SAQA during the financial year under review, the Committee expressed its concern relating to the continuous lack of finalization of the NQF Review.

9. Conclusion and Recommendations

The Chairperson acknowledged the responses from the Chief Executive Officers of the respective entities at short notice. He emphasized that as conducting oversight and monitoring over the Executive, hearings on annual reports would be institutionalized. The Committee acknowledged the progress that entities have made in the financial year under review. However, the Committee was aggrieved when entities are hamstrung into performing their Constitutional obligation due to the outstanding Review of the National Qualifications Framework.

He further thanked Members for having attended the meeting. He further announced that the study tour to Ghana and Mali has been finalized and preparations are at an advance stage. The study tour was scheduled for 15 -23 October 2005.

Having interrogated the 2004/05 annual reports of the Department of Education and its Public Entities tabled to Parliament in terms of the requirements of Public Finance Management Act, the committee concludes and recommends as follows that:

9.1 In respect of Umalusi, South African Qualifications Authority and the Council on Higher Education to jointly compile a comprehensive recommendation to the Committee with regard to lack of progress on the Review of National Qualifications Framework.

9.2 The fate of an educator who allegedly raped a learner and continues to practice in his position despite that positive evidence was collected and singles him out as the perpetrator. The Committee recommends that the matter should be finalized.

Signed on behalf of the Committee