The Gauteng Department of Education has admitted it has no money to pay companies that supply it with food for schoolchildren.
The admission came in a letter that the department’s acting director for the National School Nutrition Programme (NSNP), Busișive Mahlangu, wrote to service providers on Tuesday.
“The department acknowledges the delay in the release of payments relating to quantile 4 and quantile 5 under the National School Nutrition Programme.
“This delay is due to current cashflow challenges affecting voted funds across the department,” she wrote, adding that the challenge risks disrupting a critical programme that feeds thousands of schoolchildren across the province.
Voted funds refer to monies allocated to the department through the provincial budget, indicating a broader liquidity issue within the Gauteng education system.
She reassured the service providers, stating it is “actively working to address this matter”.
She committed the department to making the necessary financial provision to clear the outstanding payments “in due course”, without providing a specific timeline for when providers can expect to receive their funds.
Recognizing the potential strain this places on small businesses, the department offered a concession.
“Should any service provider require a specific letter from the department to communicate with their creditors, such requests may be directed to [my office].
We sincerely apologize for any inconvenience caused and greatly appreciate your patience, understanding and continued support in ensuring the success of the NSNP,” she wrote.
The announcement has raised concerns about the potential impact on the stability of the NSNP.
Service providers, many of which are small- to medium- sized enterprises, operate on tight margins and rely on timely payments to purchase supplies and pay their staff.
Prolonged delays could jeopardise their ability to deliver food, ultimately affecting the pupils who depend on the programme for a daily meal.
Departmental spokesperson Steve Mabona said the funding for these quintiles is under pressure due to the growth in the number of learners.
“This trend has become noticeable over the past four years and can be attributed to parents’ loss of employment following the advent of COVID-19,” he said.
