News around Africa - July 6, 2021

How South African Treasury Paid Microsoft $20m Instead of R20m

July 6, 2021

2 min read

The Gauteng Department of Treasury in an alleged act of negligence paid Microsoft $20m instead of the R20m. While the excess was recalled in February, it cost the South African province of Gauteng, $480,587.12 (R6 843 737.90) of taxpayers’ money due to exchange rates.

This was disclosed on Tuesday by Adriana Randall, district attorney spokesperson on finance and e-government in Gauteng, who said it would not rest until the money was recovered for the benefit of Gauteng citizens and the officials involved are charged.

“Provincial Treasury erroneously processed an amount of $20 913 793.81 instead of the rand value of R20 913 793.81 as per e-Government payment advice, for the cost of Microsoft fees. This resulted in a debit amount of R318 307 941.79 from the e-Government bank account,’’ said Randall.

He also stated that the lost funds could have gone a long way in improving the Broadband Network which will assist residents seeking job opportunities, and connect the people to the government.

The sum to be paid to Microsoft Ireland, according to Nomantu Nkomo-Ralehoko, MEC for Finance and e-Government, was R20 913 793.81. And the department submitted the payment advice to Provincial Treasury, Cash Book and Services for processing.

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