A Johannesburg school is struggling financially and has used staff pension monies to keep afloat, according to a report on Wednesday.

Sandringham High School allegedly deducted pension money but did not transfer to pension funds for four months, The Star newspaper reported.

School governing body chairman Wonderboy Peters confirmed the use of pension money to keep the school afloat.

Peters told the daily this was done due to the school's financial problems and that they needed to use the money to pay the salaries of teachers appointed by the school governing body.

According to the report, at least 12 staff members did not receive their salaries for July. They were informed last week that they would be retrenched.

The retrenched staff received "IOUs" instead of their pay cheques this month -- a note which said they would be paid once the school "had enough money".

The school is reported to have been struggling financially since its principal Logan Naidoo was suspended in March on allegations of financial mismanagement.

Sandringham High School was once one of the top 500 schools in South Africa, The Star reported.