Post Office rescue plan slammed for lack of transparency and strategic detail
The Post Office turnaround strategy is being criticised for raising more questions than providing answers.
The Select Committee on Economic Development and Trade expresses concern about the work of business rescue practitioners on the South African Post Office's (Sapo) turnaround strategy.
This follows the practitioners' plan presentation in parliament on Wednesday, which outlined the progress being made.
According to the practitioners, their long-term vision is to transform the Post Office into an e-commerce hub and multipurpose service centre.
Concerns about further job losses and transparency
Committee chairperson Sonja Boshoff said troubling realities remain. The biggest being the retrenchments of more than 4 000 employees, with no confirmation that there will not be any further job losses.
'Service delivery at the Post Office has significantly deteriorated, and the entity continues to survive on state bailouts. Public confidence has been completely eroded, and the long-term sustainability of Sapo remains in serious jeopardy,' Boshoff said in a statement on Thursday.
She also raised concerns about the practitioners' request to present substantial portions of the turnaround strategy in a closed session.
'Sapo is a state-owned enterprise funded by public money. The use of in-camera briefings must remain the exception, not the rule.
'Such briefings should only be permitted in instances of legitimate commercial sensitivity – not as a tool to shield institutional failures from public scrutiny and parliamentary oversight,' Boshoff said.
ALSO READ: Post Office rescue plan is working, but more money is needed
Timelines and funding clarity
The prevention strategy has been criticised for offering limited details regarding innovation and measurable outcomes.
The committee notes that while the plan references digitisation, a revised branch footprint, and hybrid financing models, these aspects remain vague, lacking implementation timelines and funding clarity.
It is troubling that no investor has yet shown serious interest in supporting the turnaround of the national postal service, Boshoff said.
Unanswered questions
She said the following key questions remained unanswered:
How many of the retrenched employees have actually received support through the Temporary Employer-Employee Relief Scheme (Ters) fund?
What efforts have been made to engage the private sector in restoring core service functions?
On what basis is Sapo still classified as a 'strategic national asset' while continuing to rely on repeated state bailouts?
How will the proposed hybrid funding model work in practice, and who will ultimately bear the financial risk?
'It is imperative that public institutions – particularly those under business rescue and funded by taxpayers – operate with transparency, accountability, and defined performance indicators, the committee chairperson said.
ALSO READ: More millions to save jobs at SA Post Office
'A turnaround plan cannot rely on slogans or structural tinkering. It must restore credibility, modernise operations and rebuild trust with the South African public who depend on these services.'
Clarity, accountability and transparency
Boshoff also emphasised that as the committee continues its oversight work, it will insist on greater clarity, stronger accountability and full transparency from all parties involved in the business rescue process.
'The relevance of the Post Office in the broader communications and logistics sector is fast diminishing.
'This can only be reversed through genuine diversification of its service offering and complete modernisation of its operations,' she said.
Retrenchments and saved jobs
A total of 4 875 employees were retrenched in 2024 after Post Office entered business rescue, with a R8.7 billion debt.
In May, it was announced that Sapo and the Unemployment Insurance Fund (UIF) agreed on a deal to fund salaries of the remaining employees while the government works to restore the postal service's fortunes.
The agreement saw the return of Ters, used during the 2020 global health pandemic.
Ters will inject R381 million into the post office over six months to assist 5 956 employees.
NOW READ: The plan to fix the SA Post Office
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The Citizen
5 hours ago
- The Citizen
Post Office rescue plan slammed for lack of transparency and strategic detail
The Post Office turnaround strategy is being criticised for raising more questions than providing answers. The Select Committee on Economic Development and Trade expresses concern about the work of business rescue practitioners on the South African Post Office's (Sapo) turnaround strategy. This follows the practitioners' plan presentation in parliament on Wednesday, which outlined the progress being made. According to the practitioners, their long-term vision is to transform the Post Office into an e-commerce hub and multipurpose service centre. Concerns about further job losses and transparency Committee chairperson Sonja Boshoff said troubling realities remain. The biggest being the retrenchments of more than 4 000 employees, with no confirmation that there will not be any further job losses. 'Service delivery at the Post Office has significantly deteriorated, and the entity continues to survive on state bailouts. Public confidence has been completely eroded, and the long-term sustainability of Sapo remains in serious jeopardy,' Boshoff said in a statement on Thursday. She also raised concerns about the practitioners' request to present substantial portions of the turnaround strategy in a closed session. 'Sapo is a state-owned enterprise funded by public money. The use of in-camera briefings must remain the exception, not the rule. 'Such briefings should only be permitted in instances of legitimate commercial sensitivity – not as a tool to shield institutional failures from public scrutiny and parliamentary oversight,' Boshoff said. ALSO READ: Post Office rescue plan is working, but more money is needed Timelines and funding clarity The prevention strategy has been criticised for offering limited details regarding innovation and measurable outcomes. The committee notes that while the plan references digitisation, a revised branch footprint, and hybrid financing models, these aspects remain vague, lacking implementation timelines and funding clarity. It is troubling that no investor has yet shown serious interest in supporting the turnaround of the national postal service, Boshoff said. Unanswered questions She said the following key questions remained unanswered: How many of the retrenched employees have actually received support through the Temporary Employer-Employee Relief Scheme (Ters) fund? What efforts have been made to engage the private sector in restoring core service functions? On what basis is Sapo still classified as a 'strategic national asset' while continuing to rely on repeated state bailouts? How will the proposed hybrid funding model work in practice, and who will ultimately bear the financial risk? 'It is imperative that public institutions – particularly those under business rescue and funded by taxpayers – operate with transparency, accountability, and defined performance indicators, the committee chairperson said. ALSO READ: More millions to save jobs at SA Post Office 'A turnaround plan cannot rely on slogans or structural tinkering. It must restore credibility, modernise operations and rebuild trust with the South African public who depend on these services.' Clarity, accountability and transparency Boshoff also emphasised that as the committee continues its oversight work, it will insist on greater clarity, stronger accountability and full transparency from all parties involved in the business rescue process. 'The relevance of the Post Office in the broader communications and logistics sector is fast diminishing. 'This can only be reversed through genuine diversification of its service offering and complete modernisation of its operations,' she said. Retrenchments and saved jobs A total of 4 875 employees were retrenched in 2024 after Post Office entered business rescue, with a R8.7 billion debt. In May, it was announced that Sapo and the Unemployment Insurance Fund (UIF) agreed on a deal to fund salaries of the remaining employees while the government works to restore the postal service's fortunes. The agreement saw the return of Ters, used during the 2020 global health pandemic. Ters will inject R381 million into the post office over six months to assist 5 956 employees. NOW READ: The plan to fix the SA Post Office
IOL News
9 hours ago
- IOL News
Concerns mount over South African Post Office's recovery strategy
Chairperson of the Select Committee on Economic Development and Trade, Sonja Boshoff, has voiced significant concerns regarding the effectiveness of the SAPO's turnaround strategy. Image: Independent Newspapers Archives Chairperson of the Select Committee on Economic Development and Trade, Sonja Boshoff, has voiced significant concerns regarding the effectiveness of the business rescue practitioners (BRPs) leading the organisation's turnaround strategy. Following a presentation by the BRPs on Wednesday, which outlined a vision to evolve SAPO into an e-commerce hub and multipurpose service centre, Boshoff highlighted several troubling realities that raise alarm about the plan's viability. Foremost among her concerns is the recent retrenchment of over 4,000 employees, casting a shadow on the future of many livelihoods. Despite the substantial workforce reduction, ambiguity remains regarding the potential for further layoffs, exacerbating uncertainty among employees and stakeholders alike. 'Service delivery at the Post Office has significantly deteriorated, and the entity continues to survive on state bailouts,' Boshoff stated. 'Public confidence has been completely eroded, and the long-term sustainability of SAPO remains in serious jeopardy.' Her comments underscore a growing sentiment that the turnaround strategy, while ambitious in its goals, lacks the substance and support necessary for meaningful progress. Another point of contention for Boshoff is the BRPs' request to present key elements of the turnaround strategy in closed sessions. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ 'SAPO is a state-owned enterprise funded by public money. The use of in-camera briefings must remain the exception, not the rule,' she argued, stressing that such sessions should only occur under genuine commercial sensitivity rather than as a means to obscure institutional failures from public scrutiny and parliamentary oversight. The BRPs' strategy outlined vague notions of digitisation, a revised branch footprint, and hybrid financing models, yet it fell short on detailing innovation and measurable outcomes. Boshoff emphasised the urgency of clearer implementation timelines and funding structures, as well as addressing the pressing questions surrounding the lack of serious private investment in SAPO's recovery. 'How many of the retrenched employees have actually received support through the TERS fund? What efforts have been made to engage the private sector in restoring core service functions? On what basis is SAPO still classified as a 'strategic national asset' while continuing to rely on repeated state bailouts?' she queried, adding to a list of unanswered questions that loom over the Post Office's potential resurgence. Boshoff concluded with a clarion call for the restoration of credibility and trust in SAPO, asserting that public institutions must be held to high standards of transparency, accountability, and defined performance indicators, particularly when employing taxpayer funds. 'A turnaround plan cannot rely on slogans or structural tinkering. It must restore credibility, modernise operations, and rebuild trust with the South African public who depend on these services,' she stated. As the Select Committee continues its oversight, Boshoff reiterated the necessity for stringent accountability and complete transparency throughout the business rescue process. 'The relevance of the Post Office in the broader communications and logistics sector is fast diminishing. This can only be reversed through genuine diversification of its service offering and complete modernisation of its operations,' she concluded, leaving the fate of SAPO hanging in a delicate balance. IOL
IOL News
a day ago
- IOL News
Takealot challenges Post Office's monopoly on small parcel deliveries
Takealot Group is challenging SAPO's exclusive rights to deliver parcels under 1 k. Image: File E-commerce retailer Takealot has filed "a notice of intention to amend the notice of motion" in the marathon legal battle by the Independent Communications Authority of South Africa (Icasa) and SA Post Office (Sapo) to maintain a monopoly for Sapo in the delivery of sub-1 kilogram parcels. This comes as the pleading stage in the matter continues until mid-August, according to confirmation by the Acting Sapo CEO Fathima Gany and the Business Rescue Practitioners after an update to Parliament's Portfolio Committee on Communications and Digital Technologies. The monopoly, as outlined in the Postal Services Act, has been challenged and was extended to April 1, 2025. This comes as the private sector capitalises on Sapo's inability to enforce the monopoly due to its ongoing financial difficulties. Gany told Parliament that there had been ongoing meetings with Takealot, which has now filed a notice of intention to amend its legal position in the sub-1 kg dispute. Sapo, supported by Icasa initially took PostNet and the South African Express Parcel Association (Saepa) to court in 2018. The objective was to uphold the law and prevent these private players from delivering small parcels. However, the private courier firms won that round, especially after larger operators like Takealot joined the legal battle. Joint Business Rescue Practitioner of Sapo Anoosh Rooplal told Business Report, "The Post Office currently still has the exclusive licence to deliver sub-1 kg parcels, but this is being encroached upon by the private sector. The case is still pending, and the regulator, Icasa, is currently at the pleading stage, which is scheduled to conclude on 14 August 2025, as per the latest request. The Post Office supports Icasa in this case and will ultimately benefit if their arguments to preserve the monopoly are upheld." Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading The case, led by Icasa as the regulator, is up against the courier sector, represented by Saepa, which is challenging Sapo's exclusive rights to deliver packages under 1 kg - a competitive advantage in the growing e-commerce and rural logistics markets. Sapo has acknowledged in its Corporate Plan to 2030 that it faces increasing competition from more agile and technologically advanced private courier services. Without a major overhaul of its digital capabilities, Sapo risks losing even more market share to these competitors, particularly in urban areas. "PostNet is our competition. It has our service offering. That is what a Sapo branch is - or should be. A futuristic Sapo branch is where you can walk in and get an array of services: internet café, access to Hotmail to look for jobs, anything that you want to do that you cannot do at home. You can walk in and collect our parcels. It's a central hub," Gany said. Meanwhile, the Department of Communications and Digital Technologies has indicated its intention to review Sapo's monopoly on certain postal services, including the delivery of parcels weighing less than 1 kg. According to Sapo, the South African Courier, Express, and Parcel market was valued at R48 billion in 2023 and is projected to reach R78bn by 2030. This growth is attributed largely to the e-commerce sector, which is expected to grow at an annual rate of between 10% and 15% over the next three years. BUSINESS REPORT
