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Johannesburg - The South African Post Office (Sapo) may yet be ordered to pay up to R1.3bn in compensation for breach of contract.
The High Court last year found Sapo, which receives a state subsidy, in breach of contract. Acting Judge Stanley Sapire this week rejected Sapo's application to appeal that decision.
This was after Nasasa Mobile - a joint venture between the National Stokvel Association of South Africa (Nasasa) and Glocell - had entered into a contract with Sapo in 2004, giving Nasasa exclusive rights to sell its products through post offices.
The contract was signed by Sapo's former chief executive Maanda Manyatshe, but was cancelled by Motshoanetsi Lefoka, the current chief executive. Nasasa is claiming R1.3bn in damages.
Following the decision, Sapo had 15 court days to lodge an appeal.
According to Nasasa Mobile's legal representative, Bernard Hotz, Sapo did so only ten months later.
Sapo spokesperson Lungile Lose claimed that much time had been needed to investigate the matter properly.
The contract was cancelled because Sapo was reviewing "certain core legal requirements and aspects of corporate governance".
In his ruling Sapire declared that Sapo had demonstrated "a lamentable absence of administrative coherence and a bewildering incompetence at the highest mangerial levels".
Sapo now has the option of taking the matter to the Appeal Court by October 31.
- Sake24
