Telkom, Treasury negotiations to save millions

National Treasury and Telkom have concluded negotiations on the existing contract for fixed-line telecommunication services for national and provincial departments. By News Agency staff

In a statement on Monday, National Treasury said the renegotiated contract — through Business Connexion (BCX) — will save hundreds of millions in the next two years.

National Treasury has over the past year concentrated efforts to effect greater efficiencies in government procurement.  With this in mind, 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, thereby strengthening the fiscus.

“Telkom has thrown its weight behind this worthy effort and has offered government discounted prices for fixed-line telecommunication services. The Minister of Finance announced during the Medium Term Budget Policy Statement that fiscal consolidation in government spending will be required,” said National Treasury.

BCX is the continent’s premier ICT solutions and service provider with the technology, capability and skills to deliver end-to-end digital solutions for large and medium enterprises in the public and private sectors.

BCX’s collaboration with government is a bold and practical step towards putting the South African economy back on track, said Treasury.

Chief Procurement Officer Kenneth Brown expressed his satisfaction with the agreement.

“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 sterling example,” said Brown.

BCX Chief Executive Officer Isaac Mophatlane said that in the current tough economic climate, many businesses are reviewing their ICT spend.

“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 government and we are pleased to have been able to come to an agreement,” said Mophatlane. –


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