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.

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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.

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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.