Gugu Mkhize's tenure was dogged by claims of spending and tender irregularities.
Former Inseta CEO Gugu Mkhize. Image: Via Inside Education
The board of the Insurance Sector Education and Training Authority (Inseta) has dismissed CEO Gugu Mkhize with effect from 9 October following an investigation into her conduct.
In a statement issued over the weekend, Inseta says chief financial officer Zanele Malaza will continue to act as CEO, pending the appointment of a permanent CEO.
No specific charges or findings for Mkhize’s dismissal were given, though her tenure has been dogged by claims of spending and tender irregularities.
Inseta says it will not comment further on the matter “out of respect for confidentiality and potential legal proceedings”.
Wayne Duvenage, CEO of the Organisation Undoing Tax Abuse (Outa), says recognition must go to the Inseta board and its chair, Refilwe Matenche, “who did what we had expected the prior board to do”.
Advocate Stefanie Fick, Outa executive director for accountability, adds: “This is an important step forward for accountability at Inseta. Outa has been raising concerns about the leadership and governance of this institution for years, and we are pleased to see that action has finally been taken.”
Legal action to continue
Inseta is responsible for supporting skills development and training in the insurance and related sectors. Funded by skills development levies, it manages and disburses funds to broaden skills across the sector and provide employment access.
Outa says despite Mkhize’s dismissal, it will continue with the court challenge launched in December 2025 in the Pretoria High Court to set aside Mkhize’s reappointment by Higher Education and Training Minister Buti Manamela.
It says the appointment process was flawed and did not give proper consideration to Mkhize’s previous performance and governance concerns surrounding her at Inseta.
“How can a minister appoint someone to run a public institution and leave it to the accounting authority to investigate their suitability afterwards?” asks Fick.
“That is precisely the problem we want the court to address.”
Outa says in a statement the case is no longer simply about whether Mkhize should remain in office. It is about ensuring that future appointments to public institutions are subjected to proper scrutiny before they are finalised.
Removing CEO doesn’t remove concerns
Mkhize’s dismissal leaves several questions unanswered around procurement irregularities and the appointment of service providers at high cost.
As Moneyweb previously reported, Inseta set up the Insurance Sector Student Fund (ISSF) to support transformation in the insurance industry by funding student bursaries.
The value of approved ISSF funding jumped from R20 million to R442.8 million between 2024 and 2025 – nearly 22 times over the previous year’s allocation.
The amount recorded as ISSF expenditure in the 2025 financial year was R158.7 million.
Of this, R70 million was paid over to a little-known company called Mabophe Business Solutions.
Despite the massive increase in education funding, the Sunday Times reported that 879 bursary recipients went without funding during the first five months of 2026, leaving some to pay for their own accommodation, while others were evicted.
Mkhize was suspended on 3 June following growing concerns over the inflation of the ISSF, with Outa saying it had identified systematic vulnerabilities within the fund dating back to 2022.
Questions remain
Outa’s concerns extend beyond Mkhize’s appointment as CEO to questions about financial management, procurement, transparency and oversight at the authority.
Attempts to obtain information on these matters from Inseta have been stalled and delayed.
Outa wants a full investigation into the expenditure and procurement decisions associated with the fund, and other procurement decisions during Mkhize’s tenure, including access to financial records to establish how the money was allocated and spent.
Mkhize’s dismissal presents an opportunity for Inseta to begin rebuilding public confidence in its leadership and governance, says Outa.
“The real victory will be ensuring that the same failures cannot simply happen again under a different CEO.”
This article was republished from Moneyweb. Read the original here.
