THE VOICE OF HIGHER EDUCATION LEADERSHIP 1 The Further Education and Training Colleges Amendment Bill, 2011; the Higher Education Laws Amendment Bill, 2011; and the Skills Development Amendment Bill, 2011 HIGHER EDUCATION SOUTH AFRICA (HESA) SUBMISSION August 2011

HESA submission regarding… 1.Higher Education Laws Amendment Bill, National Financial Aid Scheme Act, Act 56 of Further Education and Training Colleges Amendment Bill,

3 Higher Education Laws Amendment Bill, 2011: Section 27 of Act 101 of 1997 We support the objective of the clauses aimed at ensuring combatting conflict of interest and corruption. We have taken note of the submission of the University of Cape Town and support that submission which we do not intend to repeat in this submission, save to make the points that As framed the clauses will have unintended effects; Students and members of Council committees, as well as Council members need to be covered by the new provisions;

4 Higher Education Laws Amendment Bill, 2011: Section 34 of Act 101 of 1997 HESA does not support the proposed sub-section 34(4) and 34(5) where it will inhibit the institution from –using a patented product wherein a member of staff may have a financial interest; –employing an individual whose spouse may have a financial interest, albeit an indirect interest. However, in recognising the dangers, institutional policies and procedures must safeguard the institution

5 National Financial Aid Scheme Act, Act 56 of 1999: Section 4A The insertion of Section 4A is not supported The powers granted to the Minister of Higher Education and Training would usurp the function of an independent juristic person – the NSFAS Board 4A(1) may therefore be seen as compromising the independence and integrity of the Board 4A(2) brings into question the principles of good corporate governance and fair administrative action where the Board is not provided with an opportunity to make representation, and to implement remedial action within a specified time frame, before unilateral determinations are made in terms of the Board members 4A(5) should limit the term of the Administrator to not more than 2 years, for the provision to be in line with section 17A(1) and (2)

6 National Financial Aid Scheme Act, Act 56 of 1999: Section 4B While 4B(3) makes provision for submission from the Board prior to the appointment of an Administrator, at that time directive has already been issued. The Board should be able to make submissions prior to the issuing of directives Further, the Minister is not required to furnish reasons for his conclusions upon receiving such representation, which calls into question the fairness and transparency of this process

7 National Financial Aid Scheme Act, Act 56 of 1999: Section 7A The Minister is given expansive powers to dissolve the Board at his discretion, and to appoint an Administrator. We are concerned about the need for fairness and the lack of transparency and accountability. Notwithstanding this HESA supports the power of the Minister to appoint and remove Board members, on the condition that –Provision is made for due process in the case of non- performance; –Guidelines regarding expectations and conduct must be documented, against which Board members are to be evaluated 7A(1) assumes that the Administrator and the Board can operate concurrently. The HE sector recommends a revision to reflect that the Minister may consider dissolution of the Board even if the resignations are less than 75%

The Further Education and Training Colleges Amendment Bill, The HE sector supports the amendments to the FET College Act, Act 16 of 2006, but with some reservations, primarily in relation to the capacity of the public FET sector The replacement of the provincial MECs of Education with the Minister of HET as the political head responsible for public FET colleges is supported. This is in line with provisions applicable to higher education institutions and promotes a more integrated post- secondary education sector Sub-section 9 is supported in respect of good governance in respect of ‘conflict of interest’ with the same provisos raised earlier Section 20 corrects the anomaly where certain staff have been employed by the province, and others by the college. This should bring about harmonisation of staff conditions of service. -However, the capacity of some colleges to be employers are brought into question. Interventions will be required to ensure smooth transition

The Further Education and Training Colleges Amendment Bill, Section 22 makes provision for fair and equitable funding -However, colleges must be provided with sufficient information from DHET on an annual basis to enable them to prepare budgets for the next financial year A question arises as to the funding formula for sustainable funding for an approved programme and qualification mix (PQM) -The NATED courses for example, were previously excluded from the Norms and Standards for funding even where enrolments surpassed those for the National Certificate (Vocational) Section 41H removes the Council of Education Ministers at provincial level as a consultative body and is supported. -However, post-transitional, regionally based forums may need to be considered to facilitate communication between the various FET stakeholders at provincial level and national levels

The Further Education and Training Colleges Amendment Bill, General comments: -The Bill needs to be aligned with the unfolding Green Paper on Post-Secondary Education -The Bill needs to indicate mechanisms for initial and continuing professional staff development at FET colleges – staff capacity has been shown to be particularly problematic at public FET colleges The Bill empowers FET colleges in terms of governance, financial and human resources, planning, student support, and other functions -The question of institutional capacity arises again. Capacity at FET colleges is very uneven -Short to medium term interventions are urgently required