The Gauteng department of education has painted a grim picture of the financial and operational strain facing schools and municipalities across the province over unpaid municipal debt.
In a media briefing on Sunday, MEC Lebogang Maile outlined the growing crisis linked to water and electricity provision at schools, while also raising concerns about the effectiveness of the province’s decentralisation model, which shifted responsibility for municipal payments to schools and governing bodies.
Here’s what you need to know about the astronomical debt:
- Gauteng schools owe municipalities nearly R584m in unpaid debt older than 60 days, with the City of Johannesburg owed the biggest share at R390m. Other major debts include rates owed to Ekurhuleni of R75m and Tshwane of R52m.
- Municipalities have been accused of overcharging schools through estimated billing, incorrect meter readings, inflated tariffs, historical debt transfers and unexplained levies, which schools say worsened their financial difficulties.
- Some schools claim municipalities incorrectly bill them under commercial or business tariffs instead of educational tariffs, leading to significantly higher electricity and water costs.
- The department said municipalities are facing a severe revenue crisis because residents and businesses are struggling to pay for services amid the cost-of-living crisis, affecting municipal cash flow and sustainability.
- The department warned that growing school debt weakens municipalities’ ability to provide sustainable services to communities, while service disconnections at schools disrupt teaching, sanitation and daily operations.
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