Here’s how much GDE owes municipalities as schools face utility cuts

2026-03-18 - 09:51

The Gauteng Department of Education (GDE) owes the City of Ekurhuleni hundreds of thousands of rand for electricity at schools under its direct control. Section 21 schools have racked up millions in unpaid municipal bills, raising fears of service disconnections. This was revealed early this month in a written reply by Gauteng education MEC Matome Chiloane to questions in the Gauteng Provincial Legislature. Millions owed by schools According to the reply, 138 schools in Ekurhuleni collectively owe the metro about R81.9 million for water and electricity, placing them at risk of disconnection. The department clarified that these institutions are section 21 schools, meaning they are responsible for managing their own finances and paying for municipal services. “The schools listed have been allocated section 21(1) (c) functions as per the South African Schools Act, 1996 (Act No.84 of 1996). These schools are responsible for the payment of municipal services,” Chiloane said. He added that a detailed breakdown of affected schools, including amounts owed and whether disconnection notices had been issued, is contained in an annexure submitted to the legislature. While most of the debt lies with self-managing schools, the GDE itself also owes money. “As at 31 January 2026, the Gauteng Department of Education owed the City of Ekurhuleni R314 613.75 for electricity accounts for schools under its direct administration,” Chiloane confirmed. Why schools are struggling to pay Chiloane attributed the non-payment of municipal accounts to several structural issues, including funding gaps and rising costs. “Reasons for non-payment include misalignment between National Norms and Standards allocations and escalating municipal tariffs and limited capacity of SGBs (school governing body) in no-fee and low-income communities to supplement state funding,” he said. He also noted that National Treasury regulations do not apply to public schools, as they are not classified as public entities under the Public Finance Management Act. ALSO READ: Nsfas debunks ‘R630k payment’ claim as fake and misleading Measures to prevent disconnections The department said it has implemented urgent interventions to avoid further service disruptions. “Urgent measures implemented include prioritising municipal services allocations, active participation in the Provincial Debt Management Committee, issuing financial management directives to all schools, and strengthening district monitoring of municipal account payments,” said Chiloane. Regardless of budget limitations, the MEC noted the department prioritised the payment of municipal services by schools. “The department issued a memo to all schools in the province providing a directive on how they must manage and administer their school funds during the uncertain economic climate faced by the country. “Schools are expected to adhere to these directives and ensure that they utilise what they have optimally,” he said. DA warns of crisis The Democratic Alliance (DA) said the situation highlights a deepening financial crisis within the GDE. DA Gauteng education spokesperson Michael Waters stated the burden placed on schools to cover basic services is unsustainable. “The financial crisis engulfing the Gauteng Department of Education continues to deepen, placing pupils’ education at risk,” Waters said. He warned that if schools are disconnected from water or electricity, “teaching and learning will come to a halt”. The DA has urged Chiloane to urgently intervene, arguing that “any responsible government would recognise that schools require reliable access to electricity, water, and sanitation services to operate effectively”. Waters added that rising municipal tariffs and inadequate funding are widening the gap between allocations and the real cost of running schools. NOW READ: Smoking extinguishers: Warning to schools over dangerous new trend