Malusi Shezi: A CEO's Journey

A CEO's Journey

By Raine St.Claire

The Construction Education and Training Authority (CETA) plays a pivotal role in the construction sector by collaborating with key stakeholders to enhance skills in the industry. Recent audits revealed significant overall performance growth; with a focus on achievements and overcoming obstacles, CETA stands resilient, evolving, and committed to shaping skills offering in the construction sector.

After enduring a challenging period, in 2021 CETA embarked on a new chapter with the appointment, by the Minister of Higher Education, Science, and Innovation, of Malusi Shezi as CEO; with over 18 years’ experience in both the private and public sectors, spanning diverse areas including consulting, corporate governance, corporate advisory,risk management, property development, skills development, investments, accounting and finance and regulatory. He was a senior Manager at AGSA and spent 3 years seconded to the United Nations Board of Auditors in New York for international experience, where he audited the United Nations Joint Staff Pension Fund (UNJSPF), UNDP and UNDPKO.

Entrusted with navigating a complex landscape, Malusi addressed issues such as restructuring, alleged corruption, and a lack of trust. Through engagement with employees and union, the implementation of quality assurance processes, and the establishment of key committees, Malusi has successfully steered CETA into a positive organisational culture, rebuilding stakeholder relationships and confidence.

In a recent interview with Public Sector Leaders, Malusi shared insights into the challenges and transformations he has navigated since assuming the role in September 2021.

Legal Action, Fiscal Prudence and Turnaround: CETA's Resilience Shines

Recent audits have shown CETA’s impressive performance, with a notable improvement from 62% overall in 2021/22 to an impressive 82% in 2022/23. Despite these achievements, the entity faced negative publicity, particularly regarding irregular expenditures, causing stakeholder concern.

Upon closer examination, it’s evident that challenges were not due to a failure in adhering to Supply Chain Management (SCM) regulations but rather an overcharge post-competitive bidding. CETA’s decision to pursue legal action demonstrates its commitment to accountability, maintaining integrity and transparency. Achieving an 82% performance by spending only 61% of the approved budget resulted in a R10-million surplus for the 2022/23 fiscal year is a significant improvement from the previous deficit of R248-million.

Path To Success: Amplifying Skills and Economic

CETA’s mission defines its commitment and focus on implementing the National Skills Development Plan (NSDP 2023), with an emphasis on enhancing critical skills, strengthening the sector’s economic sustainability, and boosting its global competitiveness through collaborative engagement with employers, learners, training providers, Councils, universities, universities of technologies, TVETs, and Community Education and Training Colleges (CETs).

Turning The Ship Around

There was a need to rebuild trust, address allegations, and work collaboratively with employees to instil the importance of change. Challenges extended to illegal strikes, addressing irregularly awarded tenders, and navigating a period without a functional board. Despite the obstacles, Malusi focused on transparency, diligent reporting, and engaging stakeholders to gradually stabilise the organisation.

Addressing concerns about unauthorised transactions, bribery, and non-compliance, CETA not only took corrective actions but also remained vigilant in scrutinising and rectifying systemic issues. Under the leadership of CEO Malusi, the CETA team took decisive action to rectify irregularities, showcasing a commitment to ethical conduct and organisational rectitude. This ongoing commitment to accountability and transparent governance demonstrates CETA’s forward-looking approach, learning from past challenges and continuously improving to fulfil its mandate.

Unveiling CETA's Core Mandate

CETA’s core mandate, rooted in the Skills Development Act of 1998, revolves around ensuring a skilled and competent workforce in the construction and built environment. The organisation remains committed to establishing learning Programmes, approving workplace skills plans, allocating grants, and monitoring education and skills development. Although CETA has evolved its Programmes for higher impact and partnered with industry stakeholders, its fundamental mandate has remained unchanged.

Seven Strategic Priorities, Focus Areas and Their Impact

Under Malusi’s leadership, CETA has made significant strides, ensuring financial stability, effective governance, stakeholder engagement, a positive organisational culture, skilled workforce, digitisation, credible research, and a strong brand presence.

“As CETA, we have improved how we implement our programmes for higher impact and address the critical and scarce including hard to fill skills. We have partnered with industry to accelerate our strategic objectives and target achievements, improved our research capability and the quality assurance function at CETA. We are working to accelerate DG projects monitoring and evaluation to ensure all start and complete within prescribed timelines and quality output swiftly absorbable by the labour market is achieved.”

1. CETA sustainability and clean administration

• Objective: To ensure financial sustainability, robust policies and compliance.

• Success: The organisation experienced a noteworthy improvement in its financial status, culminating in a surplus of R10-million for the 2022/23 fiscal year. This positive shift was coupled with the streamlining of the benefits structure and the implementation of efficient quality assurance processes.

• Objective: Operate within delegations and transform into a high-performing institution.

• Success: CETA achieved an audited performance rating of 82% in the 2022/23 period, exceeding the set target of 80%. The strategic term targets are on a promising trajectory, averaging 56% completion two years before the term’s conclusion.

2. Effective stakeholder relationships

• Objective: Foster fluid relationships leading to accelerated service delivery.

• Success: CETA embarked on a comprehensive countrywide stakeholder roadshow, engaging with stakeholders, receiving feedback, and implementing action plans to address concerns. This initiative, along with increased partnerships and the introduction of the Built Environment Recognition Awards, has significantly strengthened stakeholder relationships.

3. Culture based on CETA values

• Objective: Establish a culture based on fluid corporate values.

• Success: The organisation refined its values to reflect agility, results orientation, integrity, respect, and professionalism. These values have been seamlessly integrated into every CETA employee’s performance contract, fostering a cohesive and values-driven organisational culture.

  4. Enhanced people competencies, skills, and engagement

• Objective: Develop competencies, skills, and engagement for excellence.

• Success: CETA prioritised learning and development, providing staff bursary assistance and facilitating various short skills training Programmes. This resulted in a surge of employees, from junior to senior levels, pursuing education. Additionally, talent and leadership frameworks have been implemented to ensure career growth within CETA.

5. Digitisation, information, and knowledge management

• Objective: Ensure electronic processes, automation, and effective knowledge management.

• Success: CETA has made strides in digitisation, institutionalising knowledge within the organisation. Plans are underway to appoint a provider to digitise legacy records, and Information and Knowledge Management (IKM) is in the process of being rolled out.

6. Research and Innovation

• Objective: Base skills provisioning on credible research and enhance innovation.

• Success: CETA has focused on standardising learning materials, improving the quality of training providers, and conducting impactful research. Research topics have been approved, and partnerships with institutions like UJ and CIDB have facilitated meaningful studies on the impact of CETA Programmes and the implementation of Building Information Modeling (BIM) in university curricula.

7. CETA Brand Management

• Objective: Achieve a strong brand positioning and positive brand experience.

• Success: CETA has successfully positioned its brand, creating a positive experience for stakeholders. The organisation adheres to a standard corporate identity in all communications, implemented the Corporate Identity Manual (CIM), regularly updates social media accounts, and sponsors key industry events to showcase the CETA brand.

Aligning Services With Economic Needs

CETA ensures its services meet the economic needs of the construction sector by updating its Sector Skills Plan (SSP), engaging with industry stakeholders, and supporting initiatives like World Skills South Africa. The entity collaborates with various institutions to balance skill supply and demand, contributing to sector growth.

Malusi emphasises research, stakeholder engagement, and partnerships to ensure the entity’s services align with industry demands.

Strong Private Sector Collaboration

Maintaining a robust relationship with the private sector, its primary contributor to funding, CETA ensures active participation in Skills Development Programmes, applications for grants, and partnerships outlined in Memorandums of Understanding (MOUs). Under Malusi’s leadership, positive changes at CETA focus on transparency, collaboration, and aligning services with industry requirements. The entity’s journey reflects a commitment to sustainable governance and fostering strong relationships with stakeholders for the benefit of the construction and training sector.

Malusi highlights the significant relationship between CETA and the private sector, as the entity relies on contributions by private companies. The private sector’s 1% skills development levy is crucial for financing CETA’s initiatives, and the entity reciprocates by providing a 20% return on investment. The collaboration extends to ongoing engagement, partnerships, and a shared commitment to address industry needs.

Anticipating Future Challenges And Triumphs

A historical administrative period characterised by uncertainty, employee resistance, and a trust deficit between management and staff laid the groundwork for the challenges faced by CETA. Overcoming suspicion and resistance, the organisation now looks ahead with a focused vision.

• “As we are nearing the end of the strategic term ending 31 March 2025 to commence a new strategic term period, we are excited to see what the future holds in this regard. This will be a period where NSDP 2030 will be entrenched and also the National Plan for the PSET 2021-2030 will be implemented.

• Achievement of the 95% of our APP target and achieving a clean audit for the 2024/25 financial year keeps us on our toes.

• The World Skills Competitions in 2024 to be held in Lyon,France, being the first to be held completely out of COVID-19 conditions. In these competitions, we showcase our skills and measure if how we perform as a country vs our global peers.

• Digitisation of all CETA processes will be the greatest achievement in its entire life term.

• I am looking forward to seeing the results and impact of our inaugural legacy projects like the IEDP for Women and Upcoming Executives program implemented by GIBS, the CETA skills impact study covering over the last 22 years since it was established, and the SMEs support for Occupational Qualifications Dispensation, and finally,

• The completion and official opening of various Skills Development Centres (facilities / campuses) under construction in various provinces of the Republic.”

Exciting Prospects In The Year Ahead For Ceta

The upcoming year holds promise for CETA, with plans to establish five skills development centres nationwide, expanding education to underserved communities. Initiatives like the Worker Initiated Skills Programme, emphasise CETA’s dedication to enhancing skills. As it approaches the end of its strategic term in 2030, CETA envisions a positive impact on the industry, including a comprehensive review of achievements and the publication of a booklet highlighting its profound impact on skills development. Malusi foresees lasting contributions to the nation’s development, challenging negative perceptions and ensuring a positive final term with a lasting legacy.