
KwaZulu-Natal government ordered to pay crèches
Judge Siphokazi Jikela, sitting in the high court in Pietermaritzburg, has ordered the KwaZulu-Natal government to pay three Early Childhood Development centres who are owed between R37,873 and R63,784 each.
Early Childhood Development (ECD) subsidies are set by the national government, currently at R17 a day per child, but the KwaZulu-Natal Department of Education has been failing to pay centres on time. The three centres are among at least 275 in the province that have struggled with late subsidy payments, with one of them owed more than R130,000.
Friends of South Africa (FOSA) and the KwaZulu-Natal Early Childhood Development Alliance are leading the court action against the department. The organisations are represented by the Legal Resources Centre.
ECD centres provide a safe place for children to receive a foundational education and have their nutritional needs met while their parents are working or studying, says Nkosinathi Sibisi, the chairperson of FOSA. Without this support, parents either have to give up working to stay at home or leave their children alone.
They appeared in an urgent court hearing on Monday, asking for the department to be ordered to pay the three centres — Sakhokwethu Crèche, Phumelela Crèche, and Zenzeleni Crèche — within five days. The Department's lawyers asked for a 30 day timeframe due to issues with their payment system. But Judge Jikela ordered the department to pay within ten days.
In the second part of their court application, which will be heard in court at a future date, FOSA and their co-litigants have submitted a list of 275 centres that have been receiving their subsidies late. They want the department to file a report to the court, describing the extent of the department's breach of payment obligations and 'a plan to overcome these deficiencies'.
Sibisi told GroundUp that the late payment issues go back to 2022, when the KZN education department took over the subsidy payments from the Department of Social Development (DSD).
'Even though there were payment issues when it was still done by the [DSD], it was never this bad,' said Sibisi.
The department has not explained the reasons for late payments in the court documents and declined to answer GroundUp's questions.
Many of FOSA's members have recently had to shut their doors because they did not have enough money to keep their centres running, says Sibisi.
According to court papers, Sakhokwethu Crèche has still not received subsidy grant payments for January, February and March of 2024, and March and April of this year.
Phumelela Crèche and Zenzeleni Crèche have not received any payments since before December 2024.
According to their court papers, these late payments have led to staff not being paid and some being laid off. The centres have had to reduce child intake due to parents not being able to pay the fees.
Thembekile Ndlovu, the principal of Zenzeleni Crèche, told GroundUp the centre has had to lay off skilled staff whose salaries they can no longer afford to pay. To feed the children, Ndlovu has had to pay for groceries out of her pocket and take out personal loans.
The centre has also had to turn down parents who cannot afford to pay the basic fee, says Ndlovu. Under normal circumstances, the grant from the department would cover the fees for many of these children.
Sinamuva, a crèche located in Inanda that Sibisi manages, is one of the 275 centres listed in the court papers. The creche has not received its subsidy for the last two months, leaving Sibisi with no choice but to use his own money to keep the centre going.
Groundup visited Sinamuva last week. Sibisi said that they have had to start finding cheaper alternatives to feed the children, deviating from their usual nutritional plan. Some days, they have had to ask parents to pack lunches for their children, which not all of them can afford.
The children's toilets also have no seats because the department had instructed the centre to replace the adult seats with children's seats, but the centre does not have enough money to buy new ones.
Sisile Khoza, principal of Ntukwini pre-school, which is also on the list, said the department owes her centre over six months of subsidies. This has caused the centre to quickly run into debt as it now owes many people payment, such as day labourers, says Khoza.
'We are struggling to survive here because we are in the rural areas and most of the parents are not employed, only relying on the government child support grant,' said Khoza. According to the list, the creche is currently owed R138,000 by the department.
This article first appeared on GroundUp. Read the original article here.

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


The Citizen
2 days ago
- The Citizen
Rate cut another boost for rising property market
With the inflation rate still below 3% and the Rand stronger against the US Dollar, the Monetary Policy Committee of the Reserve Bank has decided to lower the repo rate by 0,25% to 7,25%. This is the fourth interest rate cut since September 2024 and will take the prime rate and home loan 'base rate' to 10,75%, compared to 11,75% a year ago, notes Berry Everitt, CEO of the Chas Everitt International property group, and will cut the cost of borrowing by around R17 per R100 000. 'This means that on the R1,6m average home price noted in the May BetterBond Property Brief, the minimum monthly bond repayment will drop by R272, making it easier for prospective buyers to qualify for new home loans. 'And for existing homeowners with 20-year bonds at that level, their monthly repayments will now be almost R1100 lower than at this time last year.' The news for first-time buyers is even better, he says, with the minimum monthly repayment on the average first-time buyer home price of R1,28m dropping by R218 and the gross monthly income required to qualify for a 20-year loan of that amount falling by more than R700. 'In addition, the banks have been easing deposit requirements in recent months and the average deposit for first-time buyers is currently almost 9% lower, at R175 000, than it was at this time last year. Coming on top of the Budget decisions to raise the Transfer Duty threshold to R1,2m and not to raise VAT, this means that first-time buyers now require a lot less cash to become homeowners.' Everitt says this is already being reflected in the market, with BetterBond recording a 2,2% year-on-year increase in home loan applications in April, 'which represents a huge comeback from the 15% year-on-year decline recorded in April 2024'. Today's MPC decision follows news released by StatsSA that the inflation rate in April was 2,8%, still under the Bank's current target range of 3 to 6%, despite large electricity tariff increases and higher food prices in recent months. Reserve Bank governor Lesetja Kganyago noted that inflation was also expected to remain lower than initially expected this year largely due to lower oil prices, a stronger Rand/dollar exchange rate and the decision not to raise VAT. On the other hand, economic growth projections are lower and unemployment is higher worldwide, so there is a need to lower rates to stimulate spending, company revenues and employment. Many other central banks have already cut rates in response to this situation, and the US Federal Reserve is also expected to start doing so at its next meeting. Issued by Chas Everitt International


The Citizen
2 days ago
- The Citizen
Semigration boosts Cape residential rental yields
Semigration to the Cape has been a major boost for the residential rentals market, especially in areas such as Durbanville which offers a great lifestyle, but more affordability, says Daniela de Villiers, Seeff's rentals manager for the Durbanville area. The higher demand has unlocked more opportunities for investors and landlords in the area, offering attractive rental yields of 6%-10% depending on the area and property, she says. Average rental rates in the Durbanville and surrounding area range between R9,000 to R25,000, and for luxury homes, upwards of R30,000 per month. Luxury estate homes go to as much as R51,000 and R60,000 per month for homes rented out by Seeff in the Kanonberg and Clara Anna Fontein estates. Tenants are coming mainly from Gauteng, particularly the Pretoria area. They are drawn to the area due to the central location, reputable schools, and relative affordability compared to other upmarket locations in Cape Town. Durbanville offers easy access to main arterials, and well-maintained, safe neighbourhoods. The country-like lifestyle and proximity to the Durbanville Wine Valley are also a bonus for people moving from upcountry. Both families and young professionals are flocking to the area. Students from nearby medical facilities, and those doing practical rotations at state hospitals in the area are also drawn to the rental market. Anneke Roux, another rental agent with Seeff who operates in the Welgedacht area, says the area is also popular with those who enjoy an active lifestyle as they can safely walk and cycle in the scenic surroundings. The highest demand in Welgedacht is in the R13,000-R20,000 range while yields range from 6-10%. Schools are a big attraction, according to Allison Oosthuizen, another Seeff rental agent. Young professionals are drawn to the good selection of apartments in the area, including those at the Waterfront. Apartments rent out at R9,000-R11,000 per month which is more affordably priced compared to the Cape Town CBD. Townhouses is a popular alternative as they are also well-priced at R14,000-R18,000. Even luxury homes at R41,000-R51,000 offer good value compared to other upper end areas. The opportunity for investors is mostly for properties in the R1.2m to R2.4m price range where they can achieve a rental income of R9,000 to R20,000 per month, providing a rental yield of 5-7%. Gratia van Jaarsveld, another Seeff rental agent, however, cautions that landlords must keep their prices in line with the market or they could risk not attracting a good calibre tenant within a reasonable period. Pet-friendly properties are always sought-after. When investing in a rental property, a good location is vital, but landlords must maintain properties in a good condition to optimise the rental and retain good tenants. The areas of Pinelands and Thornton, closer to the City, report similar trends. Johan Meyer, licensee from Seeff for the areas, says the high demand is due to proximity to UCT, Groote Schuur Hospital, good schools, and access to the airport. Tenants include students, medical staff as well as those working at the Old Mutual offices. Here too, rental properties are in short supply, and landlords can earn yields of 6-10%. There is high demand for neat, modern accommodation such as the new Pineworx development. Apartments are renting out at R9,500-R14,000 while houses range from R20,000. The highest prices achieved by Seeff over the last year include R25,000 for a rental in Victory Avenue, R35,000 in Uitvlugt, and R42,000 in Links Drive. Issued by Gina Meintjes


Daily Maverick
3 days ago
- Daily Maverick
The true price of owning a car
Most prospective buyers of a vehicle tend to focus on its purchase price when figuring out if it's affordable. But there are many other factors to consider because they will inflate your monthly costs. Having recently bought a new car, I've found it quite a big adjustment getting used to a vehicle loan instalment going off my bank account after not having to pay one for eight years. That said, buying a car is about so much more than its financing. I found WesBank's recent calculations about car ownership costs incredibly helpful. These calculations look at the estimated total monthly expenses associated with owning and maintaining one of the top-selling hatchbacks locally. The data also shows how the total cost of ownership has changed over time. 'Despite the recent improvement in passenger car sales, South Africa remains a price-sensitive market,' says Lebo Gaoaketse, head of marketing and communication at WesBank. 'This means when they decide to buy a car, new or used, most buyers base their decision primarily on the purchase price. But it's important to look beyond just that and consider the total cost of ownership, which is influenced by several other factors.' Cost breakdown For a mid-range hatchback with a retail price of about R294,000, including VAT, you can expect to pay an estimated monthly instalment of R5,554.80. Cars in this price range include the Volkswagen Polo Vivo 1.4 Comfortline, Kia Picanto 1.2 EX manual, Suzuki Swift 1.2 GLX, Toyota Starlet 1.5 XS and the Fiat 500 Cult. The instalment is influenced by the interest rate linked to the vehicle financing contract, which in turn is influenced by factors such as your credit score and the loan term. It's important to note that the interest rate will vary between customers, depending on their credit profile. Insurance options If you're financing your car through a bank, insurance is compulsory before you drive it off the showroom floor. But even if your vehicle is not financed, insurance protects you against losses that might result from an accident or theft. Insurance premiums vary depending on factors such as the make and model of the car, as well as the driver's history and location. For the model in question, a comprehensive insurance premium of R1,827.24 monthly can be expected. It's worth noting that even if you have comprehensive insurance, the amount you owe the bank includes interest and is usually significantly more than the value of the car, especially in the first four years of ownership. Credit shortfall insurance is a valuable add-on to your policy. I made a point of letting my family know that I had taken this option in case I end up dying in a car accident, because I wouldn't want them stressing about the debt. Nor would I want to be stuck paying off the debt if my car is written off. Fuel costs Fuel is one of the largest recurring expenses for car owners. Gaoaketse recommends that you estimate your monthly fuel costs, determine your car's fuel consumption rate and the distance you travel each month. The average monthly fuel costs for the vehicle in this scenario are R3,902.50. This is where your choice of car can make a massive difference. Although I didn't have a car instalment previously, I was forking out between R4,000 and R6,000 a month on fuel – the 'perk' of living two hours away from the city. Swapping my gas-guzzling SUV for a hybrid car has been an absolute game-changer, and the difference at the fuel pumps still astounds me two months later. Continuing maintenance Routine maintenance is important to ensure the safe and reliable operation of your vehicle. In the WesBank example, you could expect to pay in the region of R475.75 per month, or R5,709 annually, for running costs, including routine maintenance and general upkeep. Total monthly mobility costs When combining the monthly instalment, fuel, insurance and running costs, the total monthly cost for one of the bestselling hatchbacks in South Africa comes to R11,760.29 – marginally higher than the average total cost of ownership in 2024, which was R11,578.70 per month. Historical data Reviewing historical data, the increase in the total cost of vehicle ownership becomes apparent. For instance, because of vehicle price inflation, the estimated monthly instalment for the study model has jumped from R2,417.03 in 2012 to R5,554.80 in 2025. Insurance premiums have increased from R802.66 to R1,827.24 over the same period, and fuel costs have ballooned from R1,856.75 to about R3,902.50 per month. 'Viewing the cost of vehicle ownership from this perspective is important and underscores the need to objectively and honestly evaluate one's affordability level before signing a long-term vehicle finance contract to ensure a fulfilling vehicle ownership experience,' says Gaoaketse. DM PS the numbers in this story were hypothetical and not what Neesa Moodley is paying for her car.