Latest news with #AnooshRooplal
IOL News
12-06-2025
- Business
- IOL News
Scrutiny mounts over R86 million spent on South African Post Office business rescue
According to the AG report, Sapo is not meeting their payment commitments to their creditors, including statutory creditors, resulting in interest and penalties being charged on late or non-payment. Image: Independent Newspapers Archives Parliament's Standing Committee on Public Accounts (Scopa) has expressed serious concerns regarding more than R86 million paid to the South African Post Office (Sapo) business rescue practitioners (BRPs), Anoosh Rooplal and Juanito Damons, since their appointment in 2023. Members of Parliament on Wednesday questioned the revelation of zero consequence management at Sapo as wasteful and fruitless expenditure was sitting above R200 million since 2021. This comes as R152m remains unaccounted for in the current year, with further reports of R136m being written off by the BRPs. "I would like to understand that it is two people, that is already R86m spent on them, please Auditor-General, take us nicely. Did you have sight of what the R86m was paying for? What are the other consultants? What is the period of these people being there," asked MP Veronica Mente-Nkuna. "History has treated us badly with business rescue We saw with SAA that has turned itself around but the busines rescue process did hot have much contribution in turning it around." Executives for the Office of the Auditor-General (AG) clarified that the R86m paid to the two practitioners was regulated with caps and rates on what they could charge for, further explaining that they needed to contract independent expertise. Some of the key things were the actual turnaround plan and implementing the plan as well, They also needed someone on the ground to support management, closing the Section 189 legal involvement, and the involement of other practitioners such as tax, legal, evaluators and others. According to the AG report, Sapo is not meeting their payment commitments to their creditors, including statutory creditors, resulting in interest and penalties being charged on late or non-payment. The fruitless and wasteful incurred for the current year was R152m, however R136m was written off as result of the business rescue process for the current year. Similarly, the opening balance was decreased by R484m as a result of the business rescue process. Sapo's consequence management for fruitless and wasteful expenditure is inadequate, with delayed investigations, poor record-keeping, and weak disciplinary actions, undermining accountability and allowing financial inefficiencies to persist, the AG reported. "What is the Sapo's culture around fruitless and wasteful expenditure is marked by weak accountability, poor financial management—such as entering contracts without cash flow confirmation—and a tolerance for inefficiency, resulting in repeated financial losses," noted the AG report.. "Its consequence management is reactive and permissive, with delayed actions often justified by financial difficulties, undermining effective financial control." The AG said weak internal control environment around cashflow management, ineffective contract management, and lack of accountability were the main contributing root cause to the culture Sapo's fruitless and wasteful expenditure. Cash flow constraints further delay payments, leading to avoidable costs such as interest and penalties. The AG said weak consequence management stemmed from lack of leadership and oversight, delayed investigations, inadequate disciplinary action, and poor record-keeping of evidence supporting fruitless and wasteful expenditure cases, often excused by financial difficulties. The AG said executive management must enforce accountability on all responsible officials accountable for financial decisions and contract management through capacitating the Financial Misconduct Committee (FMC) in order to change the culture of fruitless and wasteful expenditure. It also recommended that the board to be appointed should strengthen oversight over the FMC, and the Department of Communications and Digital Technologies, together with the board, should ensure strict monitoring and consequence management. BUSINESS REPORT
The Citizen
29-05-2025
- Business
- The Citizen
Post Office rescue plan is working, but more money is needed
Three creditors still need to be paid a combined amount of R509 million. Pensioners queue outside the Post Office in Westgate, awaiting their payouts. Picture: Devina Haripersad The Business Rescue of the South African Post Office (Sapo) is nearing completion, and the practitioners reported back positive results to parliament. However, a bumpy ride is still ahead. Business Rescue Practitioner (BRP), Anoosh Rooplal and Juanito Damons told the parliament's Communications and Digital Technologies committee that they are 75% done with the handover process to the shareholders of Sapo on Wednesday. However, they need to devise a plan to address outstanding creditors. ALSO READ: More millions to save jobs at SA Post Office Post office debt The committee was told that the Post Office was unable to receive R3.8 billion. Therefore, they are still in discussions with the department regarding an alternative plan to settle outstanding creditors. The creditors that still need to be paid are the South African Revenue Services (Sars), the Pension Fund, and Medipos. The three need to be paid a collective of R509 million. For the financial year 2024-25, the practitioners were able to pay creditors a total of R1 billion. Post office successes The committee was informed that, for the first time since 2012, Sapo had a positive balance sheet with a net asset value (NAV) of R1 billion. Sapo was placed under provisional liquidation in 2023, but thanks to the work of Rooplal and Damons, the entity has been discharged. 'The BRPs applied to have the provisional liquidation order discharged. The matter was heard on 22 November 2024, and the provisional liquidation order was discharged.' The entity is currently paying its liabilities in the ordinary course of business. ALSO READ: Ramaphosa signs Post Office Bill into law Retrenchments The practitioners stated that they issued 4 875 termination letters for employees who were affected by the retrenchment. 'All affected employees' notice period ended on 30 April 2024, and 4 342 employees were retrenched.' Sapo reported that year-on-year expenses of R2.7 billion were reduced by R2 billion, with staff costs being the main contributor to this decrease. As of 31 March 2025, Sapo had 5 592 employees. Additionally, the entity reduced the number of operating branches to 657. Sapo receives money The entity received R150 million from the Department of Communications and Digital Technologies in March 2025. When it comes to revenue, the entity reported year-on-year revenue of R1.7 billion, a decline of R700 million. They attributed this decline to a lack of investment in infrastructure. Achievements The BRP outlined the following goals to be achieved: Improving cash management processes Creditor Compromise Completion of S189 payments (final tranche of settlements) Achieved a target of 657 branches Employee reduction, R1.2 billion annual cost savings Data Centre Migration They are in the process of achieving the following goals: Investment in fleet management systems Strategic partnerships Appointing suitably qualified, skilled and competent management and directors Outstanding goals Statutory and payroll creditors Hardware infrastructure and software applications modernisation Investment in sales and business development team for bulk mail segment Strategic and equitable partnership implementation NOW READ: Parliament discusses SA Post Office's fate a month after 'day zero'
Eyewitness News
29-05-2025
- Business
- Eyewitness News
Business rescue practitioners tells Parliament task to save struggling Post Office a success
CAPE TOWN - The South African Post Office (SAPO)'s business rescue practitioners have told Parliament their task to save the struggling entity has been a success. They told Parliament on Wednesday that the South African Post Office has seen the first positive balance sheet with a net asset value of R1 billion - the first since 2012. But the turnaround has come at a huge cost, with more than 4,000 employees retrenched and hundreds of branches closed, affecting poor and rural communities. The Post Office was placed under provisional liquidation in February 2023, and a few months later, Anoosh Rooplal and Juanito Damons were appointed as the joint business rescue practitioners. They told the communications and digital technologies committee that they've reached a point where they can start planning their exit. Rooplal said the process has yielded a lot of positive results. "This certainly has been a complex business rescue process; it hasn't been easy, but nonetheless, much progress has been made since our appointment." He said the entity has also resolved its debt problem, which amounted to billions. "Effectively, we're handing back an entity, a Post Office… that's virtually debt free." The rescue team told the committee that the Post Office still needs a cash boost after being denied a R3.8 billion bailout by Treasury in 2024. ALSO READ: Mashatile says govt not ready to let go of cash-strapped Post Office yet
News24
08-05-2025
- Business
- News24
Post Office scores R381m lifeline — but full bailout still hangs in the balance
For more financial news, go to the News24 Business front page. SA's struggling Post Office is expected to soon receive a financial boost after it successfully applied for R381 million in funding via the Temporary Employer/Employee Relief Scheme (TERS). While the SA Post Office (SAPO) has not yet received the funding, it expects to do so once all administrative processes are completed. TERS, originally set up during Covid-19, is a government wage-relief scheme that helps companies retain workers during financial distress. 'These funds were applied for by the Post Office in December 2024 and will assist to pay some of the salary expenses of the business for the next six months,' said Anoosh Rooplal, one of SAPO's two business rescue practitioners. 'This will assist to contribute to a future of the business and improve the cash flows.' While the R381 million in income support will help the SAPO stay afloat, it is only roughly a tenth of the R3.8 billion the Post Office says it needs in its comprehensive turnaround plan. It is wants use the full R3.8-billion package to pay off creditors, fund retrenchment packages, update outdated IT systems, and improve infrastructure, logistics, and mail processing. The government has been hesitant to release the funds, however. It is insisting SAPO's business rescue practitioners present an ironclad plan to ensure the state-run institution won't require future bailouts. Khusela Diko, chair of the Portfolio Committee on Communications and Digital Technologies, called the R381-million wage subsidy an 'important milestone' in the ongoing work to rescue and 'futureproof' the Post Office. 'The subsidy is expected to reduce the SAPO's cost burden and forms part of the building blocks towards the completion of the business rescue process,' she said.
