Abstract
D.Litt et Phil.
The establishment of Sector Education and Training Authorities (SETAs) was seen as a way of addressing the continued shortage of skilled professionals in order to ensure a competitive South African economy in the global environment. The SETAs attracted much media attention as a result of poor service delivery primarily attributed to poor corporate governance. Despite the many positive contributions by SETAs, they remain the most criticized entities in post-democratic South Africa. The study entails a description, explanation and assessment of the concepts corporate governance, risk management and compliance in SETAs. The legislative framework that underpins good corporate governance is identified and explained. The roles of the board and its fiduciary duties, and of the audit committee and the roles of executive management are described in order to ensure a clear understanding of each of them and a separation of each from the others.
The concepts corporate governance, risk management and compliance are inseparable from the well-being of any organization. The board of an entity is ultimately accountable for the implementation of good corporate governance. Its role can be of value only if it is properly constituted, is functioning effectively and if its role is understood by all parties concerned. The manifestations of poor corporate governance include poor financial management, non-compliance with policies and procedures, lack of capacity building and the lack of a formalized nomination system to identify suitably qualified and experienced board members. By exercising corporate governance in an accountable and transparent manner, the most appropriate developmental policy objectives to sustainably develop a society by mobilizing and applying all available resources in the public and private sectors in the most efficient, efficient and democratic way will be achieved.