South Africa: Energy and Water Seta Blew R58m in Public Funds On Building That Was Never Used

More than R58-million in public funds has been lost on an unused building bought by the Energy and Water Sector Education and Training Authority in 2014. Despite years of spending, investigations and criminal cases, no one has been held accountable.

The Energy and Water Sector Education and Training Authority (Ewseta), an entity responsible for empowering young people, has come under fire for institutional dysfunction. A critical finding in the Auditor-General of South Africa's General Report for 2024/25 has highlighted governance failures in the skills development arena. Enquiries by Daily Maverick have uncovered significant wasteful expenditure on property acquisitions that have yielded no returns.

The acquisition of the Cape House building in Johannesburg is the focal point of the current controversy. Originally bought in 2014 for R21.7-million, the property was intended to curb long-term leasing costs. However, despite an additional R36.7-million being funnelled into refurbishments through various service providers, the project remains unfinished more than 10 years later.

Consequently, the Seta has never occupied the premises, resulting in more than R58-million in wasted public funds.

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In 2014, Errol Gradwell was the CEO of the entity. When Daily Maverick approached him for comment, he distanced himself from the decision-making process.

"Unfortunately, I won't be able to assist. You are talking about 14 years, and my age and memory doesn't help much... Just to assist you in some way, the Accounting Authority (AA) is responsible for authorising expenditure above R500,000.00, not the CEO...

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