Latest news with #R381m
IOL News
2 days ago
- Business
- IOL News
R1. 4bn wasted: Sapo's epic failure
THE SA Post Office (Sapo) has been declared financially 'unsustainable' and riddled with systemic mismanagement. Image: Independent Newspapers Archives THE SA Post Office (Sapo) has been declared financially 'unsustainable' and riddled with systemic mismanagement after receiving its fourth consecutive failed audit opinion from the Auditor-General of South Africa (AGSA), sparking outrage from MPs who demanded answers on why the failing institution keeps consuming public money. AGSA's damning report, presented to Parliament's Standing Committee on Public Accounts (Scopa) on June 11, exposed: R152 million lost to fruitless and irregular spending in 2023/24, with R136 million dismissed without repercussions. A dismal 13% achievement rate on performance targets, despite a R381m bailout from the Unemployment Insurance Fund (UIF) for staff salaries. R86 million paid to business rescue practitioners (BRPs) and advisors since 2023, with little progress to show. No stable leadership, severe staff shortages, and repeated violations of the Public Finance Management Act (PFMA). AGSA officials delivered a stark verdict: Sapo is being propped up by taxpayer funds. 'Costs keep outstripping income. Debts are mounting, and the organisation isn't earning enough to survive,' said AGSA's Makhai Motshekga. ActionSA's Alan Beesley was more blunt: 'It's time to pull the plug. Sapo cannot be saved.' The BRPs, brought in July 2023, have already burned through R86m, including payments to consultants, tax experts, and lawyers. The EFF's Ntombovuyo Mente-Nkuna demanded answers: 'Who are these advisors? What have they actually fixed? We can't keep throwing money at a sinking ship.' 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 ✕ AGSA's Nathan Lawnet said the BRPs — from firms SNG and Legae — were 'qualified' but admitted survival depends on 'new income sources and partnerships,' which still don't exist. MPs pressed AGSA on Sapo's unaccounted-for assets, with Mente-Nkuna noting rural branch closures force grant recipients to travel far. 'How many buildings does Sapo still control? Why aren't they helping our communities?' she asked. AGSA confirmed Sapo owns properties and old equipment, but said almost nothing has been upgraded in years. Postbank's separation from Sapo — required by banking laws — has created confusion. Though Postbank is now audited independently, it still depends on Sapo's failing systems. ANC's Gijimani Skosana warned: 'Postbank once helped fund Sapo. Now, both are drowning.' Wasteful spending continues unchecked, with R200m squandered since 2021. Mente-Nkuna slammed the impunity: 'R136 million just written off? Who checked this? Who was held responsible?' AGSA admitted probes were lacking, blaming write-offs on debt settlements, not internal crackdowns.
TimesLIVE
19-05-2025
- Business
- TimesLIVE
SA Post Office to get R381m from UIF, says minister Nomakhosazana Meth
The Unemployment Insurance Fund will inject R381m into the SA Post Office (Sapo), says minister of employment and labour Nomakhosazana Meth. This will be done via the temporary employer-employee relief scheme over six months. She said the intervention is designed to provide immediate financial relief to 5,956 employees while "enabling Sapo to implement a sustainable turnaround strategy". The state-run postal service was placed under business rescue in 2023, with millions owed to creditors.
