KZN Education Department plans to save R100 million by purchasing offices

THE KwaZulu-Natal Department of Education has announced ambitious plans to own its own offices and save close to R100 million a year in rental costs.

- THAMI MAGUBANE

The department revealed that it is renting about 22 buildings at a cost of approximately R120m per year. These revelations are contained in its budget that details its cost drivers and how it aims to reduce these costs.

The department is facing a financial crisis and has recently been bailed out by the provincial government, which reappropriated close to R900m from other departments to assist the departments of health and education in meeting some of their obligations.

Speaking on the cost drivers, MEC Sipho Hlomuka said compensation of employees takes up the largest part of the department's budget, accounting for close to 90%.