GDE UPDATE ON MUNICIPAL DEBT PAYMENTS AND INFRASTRUCTURE INTERVENTIONS

MAKEKASIGREAT©®™ @KASIBC_AFRICA

ONLINE EDITOR @KASIBC_AFRICA

GDE UPDATE ON MUNICIPAL DEBT PAYMENTS AND INFRASTRUCTURE INTERVENTIONS

The Gauteng Department of Education (GDE) wishes to provide an update on the fulfilment of its commitment to settle all outstanding municipal debts owed by schools as of 31 March 2025 and outline critical infrastructure interventions aimed at addressing overcrowding across the province’s public schools.

As of 30 June 2025, the GDE had successfully paid a total of R426.27 million, representing 99.95% of the R426.45 million that was owed to municipalities and Eskom for schools without Section 21(1)(d) functions. The small outstanding balance of R175,853.61 (0.05%) was due to a delay resulting from updates to the Standard Chart of Accounts (SCOA), a reform implemented by the Provincial Treasury to improve public financial management systems. 

The Department confirms that the remaining balance will be paid during the scheduled payment runs between 25 July and 8 August 2025. This payment will bring the total settlement to 100%, thereby closing the commitment made in April 2025.

The Department provides annual allocations to schools in accordance with the Amended National Norms and Standards for School Funding. School Governing Bodies (SGBs) are guided through circulars and compliance workshops to ensure appropriate usage of these funds and are expected to supplement state resources to ensure sustainability.

Currently, the GDE retains direct financial oversight of 40 schools in the province that have not been granted Section 21 functions. As of 30 June 2025, these schools collectively owed R105,391.24 in municipal debt. The Department confirms that none of these schools experienced any water or electricity disconnections and continues to monitor and manage service payments on their behalf. The Department reaffirms its commitment to ensuring no public school in Gauteng is or will be disconnected from water and electricity due to unpaid accounts.

Overcrowding at Some Schools

In addressing the broader challenge of overcrowding in Gauteng schools, the Department has allocated R2.8 billion in the 2025/26 financial year toward school infrastructure. Of this allocation, R1.489 billion is dedicated to the construction of new and replacement schools; R615 million will support upgrades and additions, including mobile classrooms and self-build projects; R166 million is earmarked for refurbishment and rehabilitation; and R476 million is allocated for maintenance interventions.

The GDE’s approach to overcrowding combines various infrastructure strategies, including the construction of new schools on available sites, brick-and-mortar self-build classroom projects within existing schools, and the provision of mobile classrooms where immediate relief is required. 

Importantly, the Department confirms that mobile classrooms are procured directly and not through monthly lease agreements, ensuring cost-effectiveness in their deployment.

Furthermore, the Department is exploring a Public-Private Partnership (PPP) model to accelerate school infrastructure delivery in high-pressure areas. Under this model, private sector partners would finance, design, build, and potentially operate or maintain public schools for a defined period, with the Department amortising payments over time. This model aims to unlock private capital, fast-track delivery timelines, and ensure long-term sustainability while maintaining public oversight and accountability.

“As the Department, we remain committed to ensuring sound financial governance, transparency, and service continuity in all public schools. We call on all education stakeholders, particularly parents, communities, and School Governing Bodies, to continue working closely with the Department to deliver quality learning environments across Gauteng,” said Gauteng Education MEC Matome Chiloane.

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