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The financial crisis within the Gauteng Department of Education (GDE) has now reached a critical point, demanding urgent and decisive action. The department has admitted that it cannot pay more than R1.187 billion owed to schools, blaming its “cash flow challenges”. It also concedes that the money it receives from the Provincial Treasury each month is insufficient to meet all transfers due to schools.

The Democratic Alliance (DA) calls on the GDE to urgently reprioritise spending to protect frontline education services, rather than forcing schools and learners to bear the consequences of its financial mismanagement.

This information was revealed in the Gauteng Department of Education’s GDE's responses to questions from the DA in the Gauteng Provincial Legislature (GPL). The responses form the basis of the DA’s new oversight report, Following the Money: An Evidence-Based Investigation into the Distribution of Norms and Standards Funding in Gauteng Public Schools (2026/27).

The department’s claim of a “cash flow challenge” is deeply concerning, as it exposes its inability to meet its financial obligations to schools. When a government department cannot pay school budgets, this is no longer simply a “cash flow challenge”, but a financial crisis.

The consequences are severe. The GDE's own figures show that, on average, only 26.61% of the reconstructed provincial first-tranche funding requirement had been paid at the reporting date, leaving schools facing a R1.187 billion funding shortfall. This comes only months after Quintile 5 schools were hit by devastating 64% reductions in their Norms and Standards allocations from 1 April 2026.

Even more concerning is the GDE's admission that it has not assessed the impact of these delayed payments on schools. In effect, the department acknowledges that it cannot pay schools on time and has not assessed the educational consequences of that failure. The effects are already being felt on the ground. Schools collectively owe municipalities approximately R117 million, resulting in electricity disconnections at hundreds of schools and further disruption to teaching and learning.

Furthermore, the DA’s oversight report, based on the GDE's published replies, found that out of R3.234 billion in annual Norms and Standards funding, only R430.3 million was paid as first-tranche funding. It noted discrepancies in payments among schools with similar allocations and a lack of clear payment calculations. Its Fairness Index identified 143 major disparities and 375 significant variances needing clarification.

A DA-led Gauteng Provincial Government would relocate district offices from privately leased buildings to government-owned accommodation, potentially saving R180 million to R230 million. Additionally, we would review the over R400 million allocated to the Matthew Goniwe School of Leadership and Governance for measurable value for learners, assess staffing levels at head and district offices for efficiency, and ensure correct school zoning to avoid incorrect municipal service charges.

Issued by Michael Waters MPL - DA Gauteng Spokesperson for Education