Pretoria: The Gauteng Department of Education (GDE) has reported significant progress in settling its municipal debts, with R426.27 million of the R426.45 million owed to municipalities and Eskom for schools without Section 21(1)(d) functions now paid.
According to South African Government News Agency, as of 30 June 2025, the department had successfully paid 99.95% of the outstanding amount. The remaining balance of R175,853.61 is due to a delay caused by updates to the Standard Chart of Accounts (SCOA), implemented by the Provincial Treasury to enhance public financial management systems.
The department reiterated earlier this month that schools with Section 21 functions are responsible for managing their finances, including paying for municipal services like electricity and water. This update comes as the department outlines its efforts to settle all municipal debts owed by schools by 31 March 2025 and address overcrowding in public schools across the province.
On Thursday, the department confirmed that the remaining balance will be settled during scheduled payment runs between 25 July and 8 August 2025, fulfilling a commitment made in April 2025 to completely settle the municipal debts.
The GDE allocates annual funds to schools as per the Amended National Norms and Standards for School Funding, ensuring School Governing Bodies use these funds appropriately to supplement state resources. Currently, the GDE maintains financial oversight of 40 schools in the province that do not have Section 21 functions. These schools collectively owed R105,391.24 as of 30 June 2025, but no disconnections of water or electricity have occurred, with the department managing payments on their behalf.
In efforts to combat overcrowding, the department has allocated R2.8 billion for school infrastructure in the 2025/26 financial year. This includes R1.489 billion for new and replacement schools, R615 million for upgrades and additions, R166 million for refurbishment, and R476 million for maintenance.
The department's strategy involves constructing new schools, self-build classroom projects, and providing mobile classrooms where immediate relief is needed. To enhance cost efficiency, mobile classrooms are procured directly rather than leased.
To expedite infrastructure delivery, the department is considering a Public-Private Partnership (PPP) model. This would involve private sector partners financing, designing, building, and potentially maintaining schools, with the department amortizing payments over time to ensure sustainability and maintain public oversight.
MEC Matome Chiloane emphasized the department's dedication to financial governance and called for collaboration from education stakeholders to ensure quality learning environments in Gauteng.