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Gauteng schools have been pushed into a deeper financial crisis after the Gauteng Provincial Treasury advised the Gauteng Department of Education (GDE) to delay Norms and Standards payments to public schools due to provincial cash-flow constraints. This decision was made without assessing the impact the delayed funding would have on schools that have municipal accounts to pay, service providers to settle, maintenance to undertake and learners to educate.

The Gauteng Treasury's admission is contained in a written reply by Gauteng MEC for Finance, Nkuleleko Dunga, to DA questions submitted after schools failed to receive their full first-tranche allocations. When asked whether Provincial Treasury advised GDE to delay Norms and Standards payments due to provincial cash-flow constraints, the MEC answered: “Yes.”

See the reply here.

This alarming admission suggests that the Gauteng Treasury knowingly recommended delaying funds owed to schools without assessing whether these institutions could still fulfil their financial obligations. The repercussions are evident in a staggering R1.87 billion shortfall, which places additional financial pressure on schools that are already grappling to maintain essential services.

The Democratic Alliance (DA) will submit follow-up questions requesting copies of the 11 February and 13 June 2026 GDE letters, Treasury's responses to those letters, and the circular issued to provincial departments. We will also seek a full accounting of requested, approved, and transferred school allocations, inquire about the Gauteng Provincial Government's cash position and whether other departments are delaying payments, and ask whether Treasury anticipates further cash-flow issues this financial year.

Treasury also admitted that it responded to GDE correspondence and issued a circular to provincial departments. More concerning, Treasury acknowledged it did not assess how its decision would affect schools' payments to municipalities, service providers, or their ability to support teaching, maintain facilities, or prevent utility disconnections.

The reply also confirms that this cannot be dismissed as an unforeseen administrative delay because the GDE had already written to Provincial Treasury on 11 February 2026, before the start of the new financial year, setting out its projected transfers to schools. A second letter followed on 13 June 2026. Treasury itself acknowledged that the weekly transfer of the Provincial Equitable Share creates cash-flow constraints because it does not align with departmental cash-flow projections. This raises the question: was the Gauteng Provincial Government's 2026/27 budget financially credible, and was adequate provision made for the actual cash-flow requirements of provincial departments?

The Public Finance Management Act (PFMA) mandates the MEC for Finance to present a provincial budget with revenue and expenditure estimates. However, just months into the financial year, Treasury advised Gauteng's largest department to delay payments to public schools, despite prior warnings about funding needs. Gauteng residents are therefore entitled to ask whether the budget accurately reflected the government's ability to meet its financial commitments.

The contradiction is even more striking when viewed against the province's other financial obligations. Gauteng schools have experienced electricity disconnections linked to unpaid municipal accounts. This happens while Treasury reported payment of R3.806 billion in the 2024/2025 financial year and R5.476 billion in the 2025/2026 financial year to settle e-Toll debt. However, the MEC did not provide a clear breakdown of GDE's request for the first tranche, the amount approved by Treasury, and the amount transferred.

The DA will therefore submit follow-up questions seeking the February and June letters, Treasury's responses, the circular issued to departments and a full accounting of the amounts requested, approved and transferred. Parents, teachers, Schools Governing Bodies and taxpayers deserve to know whether Gauteng has enough cash to meet the commitments contained in its own budget.

A DA-led Gauteng Provincial government would not balance the province's budget by sacrificing schools. Instead, it will hold the Gauteng Treasury accountable for effective cash flow planning, protect funding for essential services, carefully consider the implications before postponing payments, and ensure full transparency regarding the province's financial situation.

Issued by DA Gauteng Spokesperson for Education Michael Waters