The Treasury has revealed that the national and provincial government spends approximately R3.2 billion annually on telecommunications services.
In its progress report on the work of the Office of the Chief Procurement Officer, The Treasury said the government spends R800 million on mobile, and R2.2 billion on fixed-line telecoms annually.
The report said the procurement of the services is fragmented across all government entities.
“Based on research and engagement of the South African supply market, savings of R400 million a year can be achieved,” stated the report.
The project is currently at market engagement stage, and awards will be made for implementation from 1 April 2016.
The Office of the Chief Procurement Officer is an initiative by National Treasury to centralise procurement and cut out corruption.
The Treasury has said it aims to save R25 billion over the next three years through this initiative.