INSETA receives first clean audit in five years amid R443 million funding investigation

The Insurance Sector Education and Training Authority (INSETA) announced achieving a clean audit opinion for the first time in five years, alongside an organizational efficiency rating of 100% for the 2025/26 financial year.

INSETA stated that the Auditor-General of South Africa issued an unqualified audit opinion, following four consecutive years of qualified opinions. The organization's management noted that this result reflects improvements in financial management, corporate governance, internal control, and accountability.

INSETA's Chairperson of the Board, Refilwe Matenche, described the transition from four years of qualified audit opinions to an unqualified opinion while simultaneously achieving 100% organizational efficiency as a 'significant milestone' for the organization. This achievement comes amidst intense scrutiny regarding allegations concerning student funding.

Investigation

Earlier this month, the publication IOL reported that INSETA confirmed it is conducting an independent investigation into governance issues related to allegations involving approximately R443 million allocated for student training. The organization stated it would not comment on the substance of the allegations while the process is ongoing.

The allegations center around the Insurance Sector Student Fund after OUTA demanded a forensic audit of procurement, management, and financial administration. OUTA claimed that the approved project cost increased from about R20 million in previous years to R442.78 million in 2024/25, with R158.72 million having been spent on this project.

This incident followed the temporary suspension of INSETA CEO, Gugu Mkhize, in June due to an investigation into irregularities in the scholarship payment system. INSETA later confirmed that the independent process was underway.

The new audit announcement does not contain detailed information on the Auditor-General's findings or explanations of what specific issues led to the resolution of previous qualified opinions.

Achievements

However, the latest available INSETA Annual Performance Plan for the 2026/27 financial year demonstrates improved reporting metrics over several years. The organization reported that its overall efficiency against planned targets increased from 72% in 2020 to 95% in 2025. Furthermore, it mentioned providing training to 75,196 beneficiaries over the four years leading up to 2025.

As part of its strategy for the period 2025 to 2030, INSETA plans to equip 100,000 beneficiaries with skills relevant to future demands over the remaining four years of the plan. The 2026/27 plan outlines seven key areas of work, including research and innovation, transformation and professionalization of the insurance sector, strategic partnerships, digitalization, support for small businesses and cooperatives, alternative funding sources, and measuring the impact of its mandate.

Goal of Maintaining Progress

Its evaluation system also includes quarterly reporting on good governance principles within the administrative program. Matenche stated that the board of directors will focus on maintaining the progress achieved.