GDE settles 99.95% of municipal debt
The Gauteng Department of Education on Thursday revealed that it paid R426.27 million of the R426.45 million owed to municipalities and Eskom.
This leaves only a small outstanding balance that, according to the department, will be cleared by early August 2025.
The department also allocated R2.8 billion for school infrastructure in the current financial year to address overcrowding across the province's public schools.
GDE's near-complete municipal debt settlement
The GDE successfully settled 99.95% of all outstanding municipal debts owed by schools as of 31 March 2025.
GDE spokesperson Steve Mabona said the payment covered 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,' said Mabona.
The department confirmed that the remaining balance would be paid during 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.
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Ongoing financial oversight
According to Mabona, the department maintains direct financial oversight of 40 schools across 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.
Mabona said 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 reaffirmed its commitment to ensuring no public school in Gauteng is or will be disconnected from water and electricity due to unpaid accounts.
The department provided annual allocations to schools in accordance with the Amended National Norms and Standards for School Funding.
Mabona said 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.
ALSO READ: Fixing SA's water woes means curtailing municipalities' free-spending ways
R2.8 billion infrastructure investment for overcrowding
In addressing the broader challenge of overcrowding in Gauteng schools, the department allocated R2.8 billion in the 2025-26 financial year toward school infrastructure.
According to Mabona, R1.489 billion is dedicated to the construction of new and replacement schools.
He said R615 million will support upgrades and additions, including mobile classrooms and self-build projects.
Meanwhile, 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,' he said.
The department confirmed that mobile classrooms are procured directly and not through monthly lease agreements, ensuring cost-effectiveness in their deployment.
ALSO READ: Overcrowding and shortage of toilets: Here's how many pupils share a classroom in Gauteng
GDE public-private partnership model
The department said it is exploring a public-private partnership 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.
Mabona said 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.
NOW READ: Gauteng schools scale down private security and anti-bullying programme amid budget cuts
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