National treasury and Telkom have concluded negotiations on the existing contract for fixed-line telecommunications services for national and provincial departments.

In a statement on Monday, national treasury said the renegotiated contract — through Business Connexion — will save hundreds of millions of rand in the next two years.

National treasury has over the past year focused on greater efficiency in government procurement. With this in mind, the office of the chief procurement officer has been in negotiations with the top 100 suppliers to government with a view to reducing costs, thereby strengthening the fiscus.

“Telkom has … offered government discounted prices for fixed-line telecoms services. The minister of finance announced during the medium-term budget policy statement that fiscal consolidation in government spending will be required,” said treasury.

Business Connexion’s collaboration with government will help put 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 Business Connexion supports this endeavour in word and deed. I call on government’s other top suppliers to follow its sterling example,” said Brown. — SANews