Business Report

Education Minister Gwarube calls urgent meeting amid cash crunch facing KZN department

Willem Phungula and Thami Magubane|Published

Basic Education Minister Siviwe Gwarube is set to meet with the KZN provincial government on Monday over the dire state of the provincial education department's finances.

Image: Department of Basic Education South Africa / Facebook

The Basic Education Minister Siviwe Gwarube is set to meet with KwaZulu-Natal Premier Thamsanqa Ntuli, Education MEC Sipho Hlomuka and Finance MEC Francois Rodgers in Durban on Monday, September 29, as the finances of the provincial department are in a dire state.

This comes after The Mercury reported on Friday that the department expects to run out of money next month and is already spending the budget for the next financial year. Officials have stated that the only solution going forward would be for the department to receive a major cash injection.

The provincial education department in a statement issued at the weekend, said the minister has undertaken an urgent visit to the province to attend to the financial difficulties facing the education department.

“The meeting will discuss the serious financial challenges besetting the province and propose a financial recovery plan for the provincial Department of Education to ensure stability and continuity in the delivery of education services in the province,” read the statement.

The education department has attributed the ongoing crisis to budget cuts imposed by the national government over recent years. As a result of these cuts, the department has lost close to R26 billion and anticipates losing another R5 billion in the coming years.

Sources within the department have already raised the alarm, saying the financial issues have delayed the process for the delivery of textbooks in preparation for the next year’s school calendar.

The provincial treasury intervened in the financial affairs of the Department of Education in August. The treasury announced at the time that the department will now be restricted from basic spending, including purchasing desks or other assets.

THE MERCURY