The National Treasury and Telkom, through Business Connexion (BCX), have concluded negotiations on the existing contract for fixed-line telecommunication services to government for national and provincial departments, which will save hundreds of millions of rand a year over the next two years.
For the last year, National Treasury has worked to effect greater efficiencies in government procurement, and the Office of the Chief Procurement Officer (OCPO) has been in negotiations with the Top 100 suppliers to government, with a view to reduce costs and strengthen the fiscus.
Telkom, through BCX, has offered government discounted prices for fixed-line telecommunication services.
“In the current tough economic climate many businesses are reviewing their ICT spend,” says BCX CEO Isaac Mophatlane. “As the continent’s leading provider of end-to-end ICT solutions, we are able to look at the total picture and then identify the areas where greater efficiencies are possible. These skills were used to great effect with the government and we are pleased to have been able to come to an agreement.”
Chief procurement officer Kenneth Brown comments: “Under the leadership of Minister Pravin Gordhan, we unwaveringly pursue efficiencies in government procurement, to effect major savings. I am delighted that BCX supports this endeavour in word and deed. I call on government’s other top suppliers to follow BCX’s example.”
The first leg of the Treasury’s negotiations focused on the travel industry, followed by construction, ICT, telecommunications and leases.
The Office of the Chief Procurement Officer (OCPO) was established in February 2013, to:
* Modernise government procurement;
* Put systems in place that will help to curb leakage in public expenditure; and
* Ensure that government realises maximum value on the R500-billion spent on goods and services annually.