Publications
Partners
Cape Town – The financial stability of the South African Post Office (Sapo) has been called into question by staff, suppliers and political parties this week, as customers agonise over lengthy delays in postal deliveries.
This week Sapo allegedly delayed paying its middle-management employees, suppliers have claimed that they are (or fear) shutting down their businesses because of non-payment by Sapo, and the Democratic Alliance (DA) has demanded that the body appear before the Telecommunications and Postal Services committee.
Fin24 has received over 80 emails from frustrated customers, who have not received post for up to three months and who say they battled to get answers from Sapo.
Their problems, however, seem to be the tip of an iceberg.
Delayed staff payments
Sapo’s management allegedly wrote to its middle-management employees this week to inform them that they would only be paid on the 31st of the month instead of the usual 25th.
The DA’s shadow deputy minister of telecommunications and postal services Cameron Mackenzie said in a statement that this was a clear sign “that not all is on track at the Post Office”.
“It is also understood that the administrator [Dr Simo Lushaba] and consultants employed will be paid on [March] 25”, said Mackenzie.
Acting Sapo CEO Mlu Mathonsi denied these allegations, telling Fin24 on Thursday that Sapo had in fact paid all employees.
“While we are currently facing a difficult financial situation, we are making steady progress towards an improved position,” he said.
“I can confirm that salaries have been paid to all employees of the SA Post Office.”
Suppliers not paid
Mackenzie said suppliers of essential cleaning services were allegedly not paid and have withdrawn their services, with Sapo staff used instead to clean toilets and buildings.
Sapo suppliers told Fin24 that businesses have collapsed as a result of non-payment and fear they will be next.
The suppliers, who asked to remain anonymous for now as they are still trying to get paid, told Fin24 that Sapo owes various suppliers millions of rands and that they are considering a class action case against the Post Office.
“It really is disgusting the way the Sapo is treating suppliers who have been dealing with them for many years,” said one source, who is owed about R100 000.
Another supplier, who is owed over R1m, said Sapo has not paid most of its vendors since October last year.
“So far we know of six SME [small and medium enterprises] suppliers who had to shut doors as a result of non-payment.”
In response to questions around issues with suppliers, Mathonsi told Fin24: “The SA Post Office is engaging individual suppliers according to a payment plan that is tied to our cash-flow situation.”
Committee is kept in the dark, says DA
The DA is concerned that Sapo does not feature in the committee programme schedule along with other state-owned companies to present their strategic business plans for the year ahead.
“This while Sapo is under administration, strike action is looming and a loss of R1.6bn is projected for the financial year,” said Mackenzie.
Since being placed under administration in November 2014 for an initial four months – later extended by three months – members of parliament have been kept in the dark as to what plans are being implemented and what progress is being made, said Mackenzie.
“This goes against the principle of accountability and the Constitutional responsibility of MPs to exercise oversight over state-owned entities,” he said.
“The minister and the SA Post Office cannot use the placement of the organisation under administration to avoid accounting to Parliament on how it is being managed.
Public funding
“With the 2015/2016 budget cycle in process, the public purse cannot be expected to provide billions of rands in funding without the Sapo being called to account for how this money is being spent.
“The committee simply cannot put off engaging the post office’s turnaround strategy any longer.”
In the last committee meeting with the SA Post Office on February 24 2015, it was indicated that the turnaround plan was being finalised and would be ready by March 15 2015, said Mackenzie. “There is still no evidence of this plan,” he said.
“The second term programme for the Portfolio Committee indicates the first time the Sapo will appear will only be on June 2, more than months after the turnaround plan deadline.”
Mackenzie said he has written to Mmamoloko Kubayi, the chairperson of the Portfolio Committee on Telecommunications and Postal Services, requesting that Lushaba and Mathonsi appear before the committee at the earliest opportunity.
