An Investigation Into The Disbursement Processes Of The Vocational Education Training Levy In Namibia

ABSTRACT

This thesis explores the possibility of improving the collection and disbursement processes and procedures of the Vocational Education Training (VET) levy by the Namibia Training Authority (NTA), to determine challenges faced by the NTA in administering the VET levy, and to propose a framework for the collection and reimbursement or redistribution of the fund. The study was based on a sample of sixty respondents. Only fifty-four took part in the actual study representing a response rate of 90 %. The study adopted a mixed method design. The findings of the study were presented through the use graphs and were also described qualitatively. The key findings of this study were that the NTA levy is distributed to qualifying employers only subject to a cap of 50% of the amount contributed by the employer. The study further found that the levy was disbursed to cover other in-house and on job training costs. The study found that the board of directors did not have an independent committee to review and approve claims from employers. Other recommendations included the treatment of the levy by companies for tax purposes, the possibility of widening the revenue base, creation of a reliable data base and the issue of monthly assessments, fixed grants, reimbursement of costs to employers, individual students, distribution to qualifying employers, disbursements for in house and on job training schemes. The need for the introduction of inspectors and a system of liaising with other state organs to improve reliability of data was identified. The study recommended five areas for further research which include the impact of NTA funding on the national skills development requirements, the adequacy of the funding on the beneficiaries, undertaking a similar study using a pure quantitative or qualitative design only, an investigation into the productive efficiency and effectiveness of TVET graduates sponsored by the NTA and evaluation of employers’ perspectives of the NTA levy.