Predatory Rental Agreements and Legal Debt Paralyze North West School Following Equipment Theft

A North West school owes R600,000 over rented equipment, leaving 789 learners with broken classrooms and no working toilets as debt paralyzes its budget.

By: AXL Media

Published: Apr 29, 2026, 7:59 AM EDT

Source: Information for this report was sourced from EWN

The High Cost of Basic Administrative Tools

Baitshoki Secondary School, a non-fee-paying institution in Itsoseng near Lichtenburg, serves as a cautionary tale of how commercial rental agreements can devastate public education resources. In March 2020, the school entered into two separate contracts: a 60-month agreement for a phone system at R2,000 per month (escalating at 15% annually) and a rental for two photocopiers at R7,590 per month. Despite the total projected costs reaching approximately R160,000 and R615,000 respectively, the contracts specified that the school would never own the equipment. These financial obligations remained even after a burglary during the Covid-19 lockdown resulted in the theft of the phone system and damage to the photocopiers.

Legal Judgments and Spiraling Arrears

By early 2022, the school had fallen into significant arrears. Entities that had been ceded the rights to the contracts—including Sasfin and the South African Securitisation Programme—pursued legal action, obtaining a judgment in September 2023 for a combined R606,000 plus interest and legal fees. Recent statements from November 2025 reveal the predatory nature of the debt; for the phone system alone, the balance has ballooned to R294,000, of which R156,000 is attributed solely to legal fees. Lawyers representing the school have described the situation as "filling a bottomless pit," noting that the department may end up paying four times the original capital amount.

Impact on Learners and Infrastructure

The financial stranglehold has had a direct and visible impact on the school’s physical environment. Learners report that the lack of funds has left them with broken ceilings, damaged walls, and collapsing floors. The most critical failure is found in the sanitation facilities; toilets are frequently broken or without water, forcing students to relieve themselves in nearby bushes. "We feel neglected," one learner told GroundUp, noting that the environment makes it nearly impossible to focus on academic studies. Because the school's bank account is closed due to the legal matter, no funds can be set aside for even minor repairs.