In a bid to solve the problem of non-payment of bills by Durban Schools, the Education Department has approved the drive of the eThekwini Municipality to introduce prepaid water and electricity meters to Section 21 schools.
According to the Durban schools’ Education Department, this will also prevent the amassing debts currently at hand.
Additionally, the prepaid meters will be launched before the end of the financial year. The education department believes this plan would somewhat solve the crisis of debts.
An announcement summarising the regulations embarked on to retrieve debt owed by Section 21 schools was presented at an executive committee meeting on Tuesday.
How debts affect Durban Schools
Durban schools spokesperson, Muzi Mahlambi, said the current situation was changing the enhancement of the education. He noted that the enormous municipal bills were victims of illegal connections.
Explaining that even people from the community are not helping matters as they connect and steal electricity and water from schools even during holidays, thereby leaving them with massive bills.
The report stated that arrears owed by schools were becoming crucial problems for eThekwini.
As of December 31, 2019, the total debt owed by Durban schools was R188.5million, which led to various meetings with the Education Department and provincial treasury to settle the issue.
Eventually, some Durban schools signed agreements to pay the outstanding debt over an extensive period. A total of R2m was amassed as a result of the action taken.
Meanwhile, in a meeting held last year with the provincial treasury and representatives from the Education Department, it was agreed that the municipality should implement its credit control and debt- collection policy.
According to the report, the city would go on with its credit control action against schools that have debts and would start issuing final demands and summons.
Additional steps to be taken are issuing notices to schools informing them about pending disconnections. Also, the water department will investigate the probability of installing devices that will provide water during the day alone, and the electricity department installing prepaid meters.
The municipality would also help the schools with energy, water, workshops training saving amongst other savings.
About Section 21 schools
Notably, section 21 schools are those Durban schools that manage their finances. The Department deposits the school allocation into the schools’ accounts at the beginning of every financial year.
This occurs after the school has submitted an audited annual financial statement report. The Department oversees the finances of the non-section 21 schools, and they request what the schools require, and the Department pays the suppliers.
These financial allocations are known as school allocations, and all schools are informed of their school allocations six months before the start of the fiscal year to allow schools to budget and plan for the next financial year.
