Gauteng schools face budget overhaul after R584m debt leaves pupils in dark

The Gauteng Department of Education will review its decentralised funding model for schools after municipal debts reached R583.9 million by the end of March. Education MEC Lebogang Maile announced the review on 17 May 2026 following court orders to restore electricity to affected schools. The changes aim to prevent further disruptions to learning caused by unpaid bills.

Gauteng schools accumulated R583.9 million in municipal debt over 60 days by the end of March 2026. The City of Johannesburg accounted for R390.7 million of this total, with the City of Ekurhuleni owing R75.14 million and the City of Tshwane R51.7 million. Schools also owe Eskom R6.32 million.

Education MEC Lebogang Maile announced the review during a media briefing at Lyndhurst Primary School. He said rising costs and weak financial skills among school governing bodies had undermined the current model. Maile added that schools must focus on delivering the curriculum while experts handle administrative functions.

On 5 May 2026 the Pretoria High Court ordered Tshwane Municipality to restore electricity to schools cut off for nonpayment. The ruling followed an application by AfriForum and Laerskool Wierdapark. AfriForum’s Alana Bailey said the cuts violated learners’ rights to quality education and basic needs.

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South African Finance Minister Enoch Godongwana presents the 2026 budget, highlighting debt stabilisation, social grants, and infrastructure investment.
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South Africa unveils 2026 budget focusing on debt stabilisation

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Finance Minister Enoch Godongwana presented the 2026 National Budget on 25 February 2026, announcing debt stabilisation at 78.9% of GDP and the withdrawal of proposed tax increases. The budget allocates R292.8 billion for social grants with increases for recipients and commits R1.07 trillion to infrastructure over the medium term. Reforms aim to enhance economic growth and public service efficiency amid a projected 1.6% growth for 2026.

Several government buildings and state-owned entities in Johannesburg lost power after the city cut their electricity for unpaid bills exceeding R1.4 billion. Mayor Dada Morero stated the move has the Gauteng Premier's approval to recover the debt.

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South African Finance Minister Enoch Godongwana has told Johannesburg mayor Dada Morero that the city is in severe financial distress and cannot afford a R10.3-billion wage agreement signed with municipal workers last year.

The Nelson Mandela Bay metro has not allocated budget for repairing rusted electricity pylons despite warnings that they have exceeded their design life. This inaction raises fears of another blackout that could severely impact the local economy. Political figures are urging immediate action to prevent further disruptions.

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Gauteng public school learners face raw sewage risks and cancelled classes due to water outages, while more affluent schools report no such issues in years.

The City of Johannesburg has revealed it has no specific budget for maintaining old-age homes, with repairs funded only if resources allow. This has led to deteriorating conditions at facilities like Eeufees Oord and Dewetshof Retirement Village. Councillors and residents report residents are now funding fixes themselves.

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South Africa’s water sector lost nearly R19 billion in 2023/24 due to leaks, illegal connections and billing issues, Auditor-General Tsakani Maluleke’s report reveals. With 47% of treated water wasted before reaching users amid ageing infrastructure and governance failures, the findings underscore the urgency behind the National Water Crisis Committee launched in February.

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