Sapo must recover R2.7bn from labour brokers - EFF

2016-02-25 11:10 - Gareth van Zyl, Fin24
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The SA Post Office was put under administration in November last year after a protracted four-month illegal strike. Picture: Emile Hendricks/Foto24


Johannesburg - Political party the Economic Freedom Fighters (EFF) wants the South African Post Office (Sapo) to recover R2.7bn it spent on labour brokers over a ten-year period.

The EFF’s call comes after Public Protector Thuli Madonsela released her report on corruption and maladministration at Sapo earlier this week.

Madonsela's chief findings were that Sapo, in 2010, unlawfully procured a ten-year lease for its Centurion head office and that the Post Office must recover R22m spent in upfront rental.

READ: Post Office Centurion lease was unlawful - public protector

Madonsela further found that Sapo improperly appointed labour brokers who operated without contracts. She said the Post Office spent R2.7bn from April 2002 to September 2012 on labour brokers.

In terms of recovering funds, Madonsela only ordered Sapo to recover the R22m spent on upfront rental.

The EFF, though, wants further remedial action.

“We further call on the board to recover the R2.7bn paid labour broking companies that according to the findings of the Public Protector had a corrupt relationship with Sapo,” said the EFF in a statement.

“There will be no need for government to bailout Sapo to a tune of R3bn when it should instead recover this R2.7 billion to primarily corrupt white labour broking companies,” said the EFF.

Sapo has previously asked government for a cash injection amid its financial struggles.

In Parliament on Tuesday, Sapo reported a R1.5bn loss for the 2015 financial year. In October last year Sapo further struggled to pay staff salaries.

But Sapo on Wednesday said in a statement that it plans to comply with Madonsela’s remedial action, which includes recovering the R22m upfront rental amount and complying with recommendations in KPMG and SIU (Special Investigating Unit) reports.

“As the board of the SA Post Office, we welcome the report of the public protector. We will ensure that her remedial actions are fully implemented,” said Sapo in a statement.

“The report marks a major milestone in the restoration of normality and confidence-building at the SA Post Office,” said the parastatal.

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