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KZN Treasury Takes Over Education Finances After Budget Blowout
A department in crisis
The KwaZulu-Natal Provincial Treasury has stepped in to take control of the provincial Department of Education’s finances after the department blew past its budget by March this year. The intervention follows months of warning signs that the department was struggling to stay afloat.
The Provincial Treasury confirmed that the move was made under Section 18 of the Public Finance Management Act, which gives the Treasury the authority to act when a department fails to manage its money responsibly.
What the intervention means
Treasury spokesperson Nkosikhona Duma explained that all new funding for the education department has been frozen, except for salaries, conditional grants such as the National School Nutrition Programme, and transfers to schools. This ensures that core services continue but prevents the department from digging itself deeper into debt.
In addition, every order placed by the education department must now receive Treasury approval. Officials have been warned that failing to follow these rules would amount to financial misconduct.
Demands for accountability
Treasury has required the education department to provide a full analysis of its unpaid creditors and to draft a repayment plan before it considers any new spending. This strict approach, Duma said, is designed to stop the department from accumulating new debt before addressing the old.
The education department has also been ordered to halt issuing new contracts or financial commitments. Only once a credible recovery plan is in place will Treasury consider easing its grip.
Why this matters
KwaZulu-Natal’s Department of Education is one of the largest in the country, responsible for paying thousands of teachers and running schools that serve millions of learners. Financial instability in this department affects everything from classroom resources to feeding schemes.
The Treasury’s intervention is not unprecedented, but it highlights how serious the financial troubles have become. Overspending in such a critical portfolio has sparked public concern, especially given the importance of education in a province already struggling with infrastructure and poverty challenges.
The bigger picture
South Africa’s education system is no stranger to financial scandals, and this intervention is likely to fuel debate about accountability in provincial governance. On social media, reactions have ranged from frustration at poor planning to cautious optimism that Treasury’s firm hand might finally restore order.
While the immediate future looks uncertain, what is clear is that the Provincial Treasury has drawn a line in the sand. The education department has been forced to confront its mismanagement head-on, with recovery now a matter of urgent priority.
Also read: What The End Of The SASSA Postbank Contract Really Means For Grant Beneficiaries
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Source: IOL
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