Johannesburg recovers millions after an investigation into unused airtime and data waste

The City of Johannesburg has recorded a financial loss of about R3.5 million after airtime and data loaded onto unused SIM cards went to waste, before launching recovery efforts against the service provider involved.

According to the city’s 2024/25 Integrated Annual Report, the issue dates back to 2019 when municipal funds were used to purchase airtime and data that were never utilised between April and August of that year.

The report said the unused resources violated provisions of the Municipal Finance Management Act, which requires that public funds be used economically and efficiently.

Investigation finds financial loss tied to unused telecom resources

The municipality later disclosed the loss in its 2020/21 financial statements, noting that it risked further material losses if the issue was not addressed.

An internal investigation into the matter was launched in 2022 and concluded in 2023, ultimately confirming that the city had suffered a financial loss of R3.467 million due to the unused airtime and data allocations.

The accounting officer recommended disciplinary and accountability measures where necessary, while the municipal public accounts committee later advised that the funds should be recovered from the service provider.

Legal steps launched, but recovery strategy shifts

By mid-2024, the city had obtained a legal opinion which found reasonable grounds to pursue a contractual claim against the service provider, leading to council approval for recovery efforts.

A demand letter was issued in October 2024, followed by a response from the service provider denying responsibility for the losses.

Although summons were later issued in November 2024, the city eventually stepped back from full legal proceedings, citing high legal costs.

Instead, Johannesburg opted to withhold payment of outstanding invoices from the service provider as a form of offset, with unpaid claims reportedly reaching about R4.3 million by March 2025.

The dispute remains unresolved as the municipality continues to balance recovery efforts with cost considerations, while maintaining that the original expenditure violated financial management rules.

Telkom expects earnings increase as lower debt and cost cuts boost performance