KwaZulu-Natal's education sector has received a R2 billion cash flow advance from National Treasury, providing temporary relief amid ongoing financial challenges.
Image: Tumi Pakkies/ Independent Newspapers
KwaZulu-Natal’s embattled education sector has received temporary financial relief after National Treasury approved a R2 billion cash flow advance to the provincial Department of Education, amid mounting concerns over unpaid school allocations, historic debt and widening budget pressures.
The Mercury reported this week that the provincial treasury has upped its intervention measures for the department. The Provincial Accountant-General (PAG) has been permanently placed within the Department of Education with full authority to oversee all financial administration functions.
KwaZulu-Natal Education MEC Sipho Hlomuka stated that the department had repeatedly raised concerns with national government about worsening financial pressures caused by years of austerity measures and budget cuts amounting to R28 billion since the 2020/21 financial year.
The department described the intervention as a “cash flow advance in the form of a repayable front-loading”, stressing that it was not a new allocation and would be offset against the current financial year’s budget.
“The province continues to carry significant pressures arising from compensation of employees, learner growth, infrastructure backlogs, scholar transport demands, and the rising costs associated with delivering quality education,” the department said.
The department warned that the advance would not cover Learning and Teaching Support Materials (LTSM) and norms and standards payments due in November. It also said no further cash draw-downs would be received from Provincial Treasury because the full amount had already been advanced.
“As a result, delays in payments to service providers and for LTSM will persist, leading to the accumulation of new debt in the following financial year,” the department said.
KwaZulu-Natal Treasury confirmed that National Treasury approved the R2 billion advance on 26 May 2026 to ensure schools receive critical norms and standards payments despite provincial cash flow constraints.
Finance MEC Francois Rodgers said the move was aimed at protecting service delivery in the education sector.
“Through collaboration with National Treasury and the KZN Department of Education, we have ensured that schools will receive the financial support required, with every rand directed towards supporting our learners,” Rodgers said.
Treasury added that priority would be given to settling historic debt owed to schools due to funding limitations.
Teacher union National Professional Teachers Organisation of South Africa (NAPTOSA) said it was relieved that the department would “breathe financially” following the advance, noting that many schools rely entirely on departmental funding for operational expenses.
“The delays and failures in paying schools their Norms and Standards allocations directly impact schools, as textbooks, stationery, and other essential resources cannot be purchased,” said NAPTOSA KwaZulu-Natal representative Thirona Moodley.
The union said the department had historically been underfunded despite being the largest education department in the country, with about 6,000 schools.
NAPTOSA also called for investigations into allegations of mismanagement within the department, saying accountability measures were necessary.
The Democratic Alliance in KwaZulu-Natal also welcomed the intervention, but said it highlighted deeper governance and financial problems within the Department of Education.
DA KwaZulu-Natal spokesperson on Education Sakhile Mngadi said the party had repeatedly warned that weak financial controls and mounting accruals would eventually affect schools.
“While the funding advance provides immediate relief, it must not distract from the deeper governance and financial failures,” Mngadi said.
For more stories from The Mercury, click the link THE MERCURY