South Africa’s most important province allocated R9.3 billion to a failed project but cannot give schools the money they are owed

The Gauteng Department of Education (GDE) said that it cannot pay schools their full second tranche of funding by the legally prescribed deadline.

This was revealed in a press statement by Michael Waters, a member of the Gauteng Provincial Legislature.

The department sent schools a circular dated 29 October 2026 about the problem of paying schools by the prescribed deadline of 15 November 2026.

Instead, the department said payments will be in instalments until March 2027, subject to cash availability.

He added that the recent revelations highlight the department’s failure to pay schools their full first tranche.

He said that R971 million is outstanding as of 14 September 2026, including R250.9 million owed to 129 public special schools.

This indicates that the department has failed to resolve the initial funding crisis while expecting schools to plan for the 2027 academic year.

This decision has created financial uncertainty for thousands of schools and could affect the quality of education that millions of learners get.

“The consequences are serious. Schools must pay municipal accounts, purchase textbooks, maintain infrastructure, and settle service providers,” he said.

Waters bemoaned that schools in the province suffer financially while billions are spent settling e-toll debt.

He highlighted a 64% decrease in funding for Quintile 5 schools and delayed subsidy payments.

However, the province allocated R3.806 billion in the 2025 financial year and R5.476 billion in the 2026 financial year for e-toll debt.

“Surely, the provincial government cannot keep allocating billions to failed projects while schools are struggling,” he said.

Waters has called for action from Gauteng Premier Panyaza Lesufi, the MEC for Finance, Nkululeko Dunga and MEC for Education, Lebogang Maile.

He said that they should disclose how much first-tranche funding remains unpaid and how much of the second tranche will be transferred by 15 November 2026.

He also wants the Gauteng Department of Education to publish a binding, school-by-school payment schedule.

“They must explain how they will prevent further electricity cuts and present a credible financial recovery plan for school funding for 2027,” Waters said.