Latest news with #R426.45m
The Citizen
03-08-2025
- Business
- The Citizen
Gauteng Education settles outstanding municipal debts with Eskom
The Gauteng Department of Education (GDE) has confirmed that it has paid R426.45m which was owed to municipalities and Eskom for schools without Section 21(1)(d) functions. This payment, which represents 99.95% of the total amount, was made as of June 30, with only R175 853 remaining because of delays caused by updates to the standard chart of accounts, a reform introduced by the provincial treasury to enhance public financial management. 'This payment reflects the GDE's commitment to fulfilling all outstanding municipal debts owed by schools, and we plan to settle the remaining balance in the upcoming scheduled payment runs,' the department said. ALSO READ: Don't miss deadline to register your child for Grade 1 and 8 – GDE The GDE also clarified that schools with Section 21 functions manage their own finances and are responsible for paying municipal services such as electricity and water. These schools have the autonomy to manage these essential services. Commitment to settle outstanding debts Earlier this year, the GDE reaffirmed its commitment to settle all outstanding municipal debts owed by schools as of March 31. The department confirmed that the remaining balance will be paid during payment runs scheduled between July 25 and August 8, bringing the total settlement to 100%. 'We will fulfil the commitment made in April with the final payment,' the department said. Currently, the GDE manages the finances of 40 schools in the province that do not have Section 21 functions. These schools collectively owed R105 391.24 in municipal debt as of June 30. However, no school has experienced disconnections in water or electricity services, as the department continues to manage payments on their behalf. Overcrowding efforts and school infrastructure To tackle overcrowding in Gauteng's public schools, the department has allocated R2.8b for school infrastructure in the 2025/26 financial year. This includes: 1. R1.489b for the construction of new and replacement schools 2. R615m for upgrades and additions, including mobile classrooms 3. R166m for refurbishments and rehabilitation 4. R476m for maintenance interventions. The GDE is employing various infrastructure strategies, including constructing new schools on available sites, self-build classroom projects within existing schools, and deploying mobile classrooms where immediate relief is needed. Mobile classrooms are procured directly, ensuring cost-efficiency with no long-term lease agreements. Public-private partnership (PPP) model To fast-track infrastructure delivery, particularly in high-pressure areas, the department is exploring a PPP model. ALSO READ: GDE introduces compliance requirements for schools This model would see private sector partners finance, design, build, and potentially operate or maintain public schools for a defined period, while the department amortises payments over time. This strategy aims to unlock private capital, expedite delivery timelines, and ensure long-term sustainability. MEC's commitment to quality education Gauteng MEC for Education Matome Chiloane reiterated the department's commitment to maintaining sound financial governance and transparency across public schools. 'We remain committed to ensuring that all public schools in Gauteng continue to receive reliable services. 'We encourage education stakeholders, particularly parents and school governing bodies, to collaborate with us in delivering high-quality learning environments,' said Chiloane.
The Citizen
03-08-2025
- Business
- The Citizen
Gauteng Education settles outstanding municipal debts with Eskom, schools
The Gauteng Department of Education (GDE) has confirmed that it has paid R426.45m which was owed to municipalities and Eskom for schools without Section 21(1)(d) functions. This payment, which represents 99.95% of the total amount, was made as of June 30, with only R175 853 remaining because of delays caused by updates to the standard chart of accounts, a reform introduced by the provincial treasury to enhance public financial management. 'This payment reflects the GDE's commitment to fulfilling all outstanding municipal debts owed by schools, and we plan to settle the remaining balance in the upcoming scheduled payment runs,' the department said. ALSO READ: Don't miss deadline to register your child for Grade 1 and 8 – GDE The GDE also clarified that schools with Section 21 functions manage their own finances and are responsible for paying municipal services such as electricity and water. These schools have the autonomy to manage these essential services. Commitment to settle outstanding debts Earlier this year, the GDE reaffirmed its commitment to settle all outstanding municipal debts owed by schools as of March 31. The department confirmed that the remaining balance will be paid during payment runs scheduled between July 25 and August 8, bringing the total settlement to 100%. 'We will fulfil the commitment made in April with the final payment,' the department said. Currently, the GDE manages the finances of 40 schools in the province that do not have Section 21 functions. These schools collectively owed R105 391.24 in municipal debt as of June 30. However, no school has experienced disconnections in water or electricity services, as the department continues to manage payments on their behalf. Overcrowding efforts and school infrastructure To tackle overcrowding in Gauteng's public schools, the department has allocated R2.8b for school infrastructure in the 2025/26 financial year. This includes: 1. R1.489b for the construction of new and replacement schools 2. R615m for upgrades and additions, including mobile classrooms 3. R166m for refurbishments and rehabilitation 4. R476m for maintenance interventions. The GDE is employing various infrastructure strategies, including constructing new schools on available sites, self-build classroom projects within existing schools, and deploying mobile classrooms where immediate relief is needed. Mobile classrooms are procured directly, ensuring cost-efficiency with no long-term lease agreements. Public-private partnership (PPP) model To fast-track infrastructure delivery, particularly in high-pressure areas, the department is exploring a PPP model. ALSO READ: GDE introduces compliance requirements for schools This model would see private sector partners finance, design, build, and potentially operate or maintain public schools for a defined period, while the department amortises payments over time. This strategy aims to unlock private capital, expedite delivery timelines, and ensure long-term sustainability. MEC's commitment to quality education Gauteng MEC for Education Matome Chiloane reiterated the department's commitment to maintaining sound financial governance and transparency across public schools. 'We remain committed to ensuring that all public schools in Gauteng continue to receive reliable services. 'We encourage education stakeholders, particularly parents and school governing bodies, to collaborate with us in delivering high-quality learning environments,' said Chiloane.
TimesLIVE
01-08-2025
- Business
- TimesLIVE
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'.
