Taxpayers are footing the bill for exorbitant cellular costs within government departments, with private calls accounting for up to 63% of government communication budgets, reveals research by Unison Communications.
According to the company, South African mobile rates are 50% more expensive than fixed-line rates, yet no clear guidelines exist to monitor mobile usage in government.
“Our research reveals that as much as 63% of all mobile communications budgets go to private calls. Mobile communication is more popular and many government departments are forced to spend more on mobile contracts for employees, because they are issued by the departments themselves,” says Craig Young, group MD of Unison Communications.
According to universal service regulations, government departments have secured a steady stream of incoming mobile phones from the country's mobile operators. But the cost of the usage will come from the South African taxpayer.
Mobile perks
The DOC says the mobile phone distribution forms part of the 3G spectrum licence. “This initiative is in partnership with SA's mobile operators, namely MTN, Vodacom and Cell C, and is part of their universal service obligations.”
The department's spokesman, Tiyani Rikhotso, explains that the mobile operators will have to collectively give 250 000 mobile phones and four million SIM cards to the DOC. The department will then allocate these to nominated beneficiaries within government.
“The recipients are going to enter into discussions with the operators with regards to whether they want prepaid or contract, and what packages they want,” says Rikhotso.
He explains that the recipients will not have to pay for contracts, as the DOC will fund them. Since it forms part of the operators' universal service obligations, there will be different packages offered, with some specifically discounted for this purpose.
However, Young argues that it is the ill-managed usage of these contracts that leads to high communication costs.
Unrestrained usage
Without established standards and policy on the correct use of mobile communications, departments could see usage go completely unmanaged, and mobile usage in government is on average 20% higher than the private sector, he explains.
Young adds: “The complication is that proper usage of these phones is not effectively managed or monitored. Mobile billings are in many instances regarded as an HR expense and are removed from regular financial or technical costs. The fault here is that true amount spent on private usage cannot be accurately determined.”
He explains that there are a number of challenges facing government's efforts to try and curb the costs. For example, Young maintains it is not likely that service providers would willingly limit their services.
Also, cap restrictions are ineffective and often lead to complicated HR challenges where the legwork involved to recover the money from employees is too time-consuming. In extreme instances, Unison's research has revealed that employees may owe as much as 80% of their annual salary in outstanding amounts, he explains.
Young argues that without access to clearly presented and informative reporting solutions, department heads will not be able to effectively manage their mobile communication expenditure.
He suggests instead that managers be given the right information, and mobile communication costs be reallocated to the department so tighter controls can be established.
Related story:
DOC bears mobile gifts
Share