Schools in South Africa’s richest province face serious problems due to delayed payments

Many Gauteng schools have been pushed into a financial crisis after payments were delayed due to provincial cash-flow constraints.

This came after the Gauteng Provincial Treasury advised the Gauteng Department of Education (GDE) to delay Norms and Standards payments to public schools.

“This decision was made without assessing the impact the delayed funding would have on schools,” said Michael Waters, a member of the Gauteng Provincial Legislature.

“These schools have municipal accounts to pay, service providers to settle, maintenance to undertake, and learners to educate.”

Waters said the Gauteng Treasury admitted it had instructed the Gauteng Department of Education to delay payments to schools.

“This admission suggests that the Gauteng Treasury knowingly recommended delaying funds owed to schools without assessing the impact,” he said.

“The repercussions are evident in a R1.87 billion shortfall, which places financial pressure on schools that are already grappling to maintain essential services.”

He said that the payment delay came amidst Gauteng schools experiencing electricity disconnections linked to unpaid municipal accounts.

“Parents, teachers, and schools governing bodies deserve to know whether Gauteng has enough cash to meet the commitments contained in its own budget,” he said.

Water said that they will request an account of requested, approved, and transferred school allocations.

They will also enquire about the Gauteng Provincial Government’s cash position and whether other departments are delaying payments.

Waters added that payments to schools were delayed, even though the Treasury reported settling e-Toll debt.

It paid R3.806 billion in the 2024/2025 financial year and R5.476 billion in the 2025/2026 financial year to settle this debt.