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Gauteng Premier Panyaza Lesufi’s government owes Microsoft R344 million in unpaid licence fees. This is not a spreadsheet error. It’s a failure of leadership. A modern government cannot function without digital systems, and Lesufi’s administration has placed core services, from healthcare to education, at risk.

This staggering financial blunder was revealed during a recent e-Government portfolio committee meeting.

This debt stems from the 2022-2025 licence agreement, where the Department of e-Government failed to pay invoices, citing “untimely billing” and “late invoices.” At its peak, the debt amounted to R631 million, and despite partial payments, the outstanding amount remains a jaw-dropping R344 million.

To make matters worse, the same department has now signed a new three-year contract with Microsoft (2025-2028) worth $53.2 million (R915.9 million), a 33% increase from the previous deal. That’s R228 million more than the last agreement signed while still being in arrears.

This is financial mismanagement on a massive scale.

Gauteng residents suffer when IT systems fail, hospital files are lost, schools are unable to operate, and departments are paralysed. This isn’t just about numbers; it’s about services, safety, and stability.

The DA has submitted urgent questions to the MEC for Finance, Lebogang Maile, demanding the following:
• The full breakdown of the current debt owed to Microsoft.
• A list of all departments affected by this mismanagement.
• Clarity on who failed to make the payments.
• What contingency plans exist to avoid service shutdowns?

Gauteng cannot afford a digital blackout.

The DA will not rest until accountability is served. We will fight to ensure that Gauteng is run by a government that is competent, transparent, and responsible with public money, not one that signs billion-rand contracts while defaulting on the last.

The people of Gauteng deserve better, and the DA will continue to fight for access to adequate services.

Issued by Michael Waters MPL - DA Gauteng Spokesperson for e-Government