Gauteng government’s VoIP delay hinders cost savings amid Telkom debt

Despite a financial crisis, the Gauteng Provincial Government (GPG) continues to spend millions on outdated Telkom landlines instead of switching to cost-effective Voice over Internet Protocol (VoIP) technology.

This is according to an audit by the province’s Department of e-Government.

The department presented its findings to the Portfolio Committee earlier this month, confirming that the total expenditure on Telkom services for the 2023/24 financial year amounted to R38.1 million.

The highest spenders were the Department of Health (R29.1 million), the Department of Education (R3.2 million), and the Department of Social Development (R916 918,19).

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DA slams wasteful expenditure

The Democratic Alliance (DA) on Tuesday criticised the GPG’s failure to implement cost-saving measures despite the province’s ongoing financial strain.

“Given the financial crisis the GPG is in due to reckless and excessive expenditure, departments should be saving costs, which is not the case,” said DA Gauteng Spokesperson for e-Government, Michael Waters.

Waters highlighted the significant potential savings.

“The DA will engage with various departments through the Portfolio Committee on e-Government to find out why they do not want to move to VoIP despite the lower costs,” he said.

The party argued that under a DA-led government, expenditure would be strictly prioritised to maximise value for taxpayers.

“We would immediately ensure government departments move from Telkom lines to VoIP to save costs and reallocate savings to improve service delivery,” Waters added.

With the province facing financial constraints, concerns are mounting over why critical cost-saving measures remain unimplemented while millions continue to be spent on outdated technology.

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Audit reveals millions spent on Telkom lines

These departments were identified as lagging in their migration to VoIP, despite its potential to cut costs significantly.

According to the audit, adopting VoIP could result in a 91% annual saving, translating to approximately R33.9 million. However, progress remains slow.

“The Department of Health has submitted a service request for 28 sites, but the migration is still in progress, with many sites yet to be finalised,” it said.

Similar delays have been noted in the Departments of Education and Social Development, where transition efforts are still in the early stages.

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Delays despite clear cost benefits

According to the department, some government entities have made progress.

The Medical Supplies Depot, previously incurring R185 212,45 in telecommunication costs, has fully migrated to VoIP, eliminating expenses associated with Primary Rate Interface (PRI) line rentals.

The Departments of Community Safety and Economic Development have also cancelled all unused Telkom lines.

However, the department noted that full VoIP implementation depends on clearing outstanding Telkom accounts, and migration timelines have been pushed to the 2025/26 financial year.

“Departments need to settle their outstanding accounts before numbers can be ported to VoIP,” the audit stated.

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