Gauteng schools nearly debt-free, R2.8bn allocated to ease overcrowding

The Gauteng education department has settled almost all municipal debts owed by schools and set aside R2.8bn to tackle overcrowding in state schools in the province.

The department said it paid R426.27m or 99.95% of the R426.45m owed to municipalities and Eskom by schools without section 21(1)(d) functions by the end of June.

The outstanding balance of R175,853.61, which represents 0.05% of the debt, “was due to a delay resulting from updates to standard chart of accounts, a reform implemented by the provincial Treasury to improve public financial management systems”.

The department confirmed the remaining amount would be paid between July 25 and August 8, fully honouring its commitment to settle school debts by the end of March.

“As the department, we remain committed to ensuring sound financial governance, transparency and service continuity in state schools,” said education MEC Matome Chiloane.

Schools in Gauteng receive annual allocations in line with the amended national norms and standards for school funding. School governing bodies (SGBs) are supported through circulars and workshops to manage the funds responsibly.

The department retains direct control over 40 schools that have not been granted financial management responsibilities. By June 30 those schools owed a combined R105,391.24 in municipal debt.

The department confirmed none of these schools experienced any water or electricity disconnections and continues to monitor and manage service payments on their behalf.

To address overcrowding, the department has allocated R2.8bn for infrastructure projects in the 2025/2026 financial year. 

Of this, R1.489bn will go towards building new and replacement schools, R615m for upgrades and additions including mobile classrooms, R166m for refurbishments and R476m for maintenance.

The department said its strategy includes brick and mortar classroom projects, new school construction on available land and deploying mobile classrooms for immediate relief.

The department also clarified that “mobile classrooms are procured directly and not through monthly lease agreements, ensuring cost-effectiveness”.

A public-private partnership model is being considered to fast-track delivery in high-demand areas.

Under this model, “private sector partners would finance, design, build and potentially operate or maintain state schools for a defined period, with the department amortising payments over time.”

Chiloane urged parents, communities and SGBs to continue working with the department “to deliver quality learning environments across Gauteng”.

TimesLIVE