The National Treasury has stepped in to assist the KwaZulu-Natal Department of Education (DOE) pay off a R443 million debt it has with the Department of Public Works and Infrastructure (DPWI) in the province.
The problem was brought to the fore, in February 2025, when the KZN DPWI informed the Standing Committee on Public Accounts (Scopa) that the DOE owed R443 million in intergovernmental debt (IDE).
The acting Head of Department at DPWI Dr Vish Govender said his department was struggling to collect IDE to a point where they had an outstanding amount of R902 million.
“That amount was outstanding to public works on a budget of R1.6 billion. We were not a going concern and were basically bankrupt. We are pleased that the Treasury came on board and secured the amount of R443 million. The amount is expected to be paid during April 2025,” he said.
Govender said that the total amount outstanding for IDE at the end of December 2024 was R739 million. He said by the end of January 2025 that amount stood at R648 million which demonstrated the effective collection mechanisms they had in place.
“The one thing we realised was that should we continue with an IDE that is escalating exponentially the department will come to a standstill and we won't be able to operate,” Govender told Scopa.
Govender added that the Treasury issued an instruction note within the financial year 2025 and 2026 that all lease agreements and infrastructure projects will be ring-fenced.
“There will also be proper planning whereby any new project will not be undertaken unless you settle all debt and finish off with projects that were started in the years before that. We have made copies of payment bills vouchers that can fill this entire room so that when the auditor general audits these departments they have copies of what we have billed,” Govender said.
Govender said the money is expected to come from the DOE financial year 2025 and 2026 budget.
“Treasury has been specific with them that they had many years to pay the money, but they failed to pay it. What they are doing is escalating their debt. The money will come from the National Treasury to the provincial treasury to the public works. Had it gone to education which I vehemently opposed it would never have come to public works,” Govender said.
KwaZulu-Natal MEC for Education, Sipho Hlomuka said he met with MEC for DPWI Martin Meyer last week. Hlomuka said the meeting was focused on finding constructive resolutions that will ensure the continuity of critical education-related infrastructure projects across the province.
Hlomuka said he was waiting for money from an allocated budget that would assist his department. Hlomuka said his department was dealing with challenges.
"We might receive money this week which we will allocate to various agencies including Independent Development Trust and public works," he said.