BANKSETA ANNUAL REPORT 2023

ANNUAL FINANCIAL STATEMENTS NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2023

17. CONTINGENCIES (continued)

17.3.2 Contingent liability in regards to employee claims An employee whose contract was not renewed has submitted a claim through the Labour court for six months salary, in terms of a directive by the Minister to extend all such contracts for six months. The BANKSETA is facing another claim by an employee for re-imbursement of legal costs incurred and damages as a result of defending disciplinary charges brought by the BANKSETA, which the BANKSETA then withdrew.

The BANKSETA is facing a third claim from a former employee for unfair dismissal.

All cases are contingent on the outcome of an external labour arbitration processes which should be completed within the next 12 months.

An estimate of the contingent liability is R3 192 000.

17.4 Contingent commitments

2021/22 Restated

202/23 R’000

Note 18.3

R’000

Contingent commitments

-

8 000

In certain cases, the SETA enters into multi-year discretionary grant contracts to fund future training, whereby only certain year’s amounts are unconditional and future year’s amounts are dependent on several suspensive conditions which normally include satisfactory execution of the delivery by the service provider, the SETA’s continued need for the service, the availability of funds for that year and approval by the board.

These are classified as contingent commitments.

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BANKSETA ANNUAL REPORT 2022/23