Gauteng education MEC Lebogang Maile says the government is reviewing legislation that allows schools to manage their own finances as public schools’ municipal debt stands at R583m in the province.
Should the department proceed to change the legislation, this would trigger a significant change in how school funds are managed and which organ of the state manages school funds in the province.
Maile, in a briefing on Sunday, said Gauteng schools’ debt to municipalities at the end of March was R583.9m. The City of Johannesburg was the highest owed, with the debt mounting to R390.71m.
“Municipalities in Gauteng have increasingly been accused of over-charging public schools through incorrect billing, inflated tariffs, estimated readings, historical debt transfers and unlawful charges on municipal accounts. These billing disputes have contributed significantly to the financial crisis facing many public schools,” Maile said.
He said many schools report being billed on estimated consumption instead of actual meter readings. This has been a long-standing issue raised by residents and businesses, particularly when estimated readings take place for more than three consecutive months.
Maile also pinned the problem on the model where responsibility for paying municipal accounts such as water, electricity, refuse removal and sanitation is managed by school management and their school governing bodies.
“Under the decentralised system, schools receive allocations from the department and are expected to manage and pay their own municipal accounts.
“Schools without electricity cannot operate computer labs, lighting or administrative systems, while water cuts create sanitation and health risks for learners and staff. Additionally, the approach [schools managing their own finances] has highlighted cases of weak financial management capacity,” he said.
Maile said some school governing bodies lack adequate financial management skills and administrative capacity to handle municipal accounts effectively. “This contributes to late payments, poor budgeting and growing arrears,” he said.
“We are reviewing the decentralisation model. This has been made necessary by the impediments that it has posed, particularly as it pertains to challenges with financial management and sound governance, which result in the non-payment of municipal services.”
Maile wants the department to manage school finances.
“Ultimately, schools must focus on the core mandate of delivering the curriculum successfully. Administrative functions must be performed by expert personnel to prevent governance failures and other factors that may obscure the focus of school management teams and school governing bodies.”
Sinesipho Schrieber
www.businesslive.co.za
