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The Citizen
3 days ago
- Business
- The Citizen
Increased risks of cyberattacks, limited skills among Sapo's challenges
The Sapo aims to move from a loss of R1.03 billion in 2025 to a net profit of R1.48 billion in 2029. The South African Post Office (Sapo) has a plan in place to turn its business around by 2029. However, several hurdles remain that it must overcome to reach its goals. In 2023, the state-owned enterprise entered business rescue with R8.7 billion in outstanding debt to creditors. It requested a R3 billion bailout at the end of 2024 to avoid liquidation, but National Treasury decided against the move. ALSO READ: Post Office rescue plan is working, but more money is needed For the financial year 2024-25, Business Rescue Practitioners (BRP) managed to pay creditors R1 billion. On Tuesday, Sapo presented its corporate plan to the Portfolio Committee on Communications and Digital Technologies, outlining its strategy for turning things around over the next five years. Sapo's corporate plan Acting CEO Fatima Gani stated that the entity is exploring the formation of partnerships with e-commerce platforms and small to medium-sized enterprises (SMEs) to unlock new revenue streams. Public-private partnerships would also help modernise Sapo infrastructure without requiring full privatisation, she said. The Sapo hopes to reach the R5 billion mark in revenue; however, this can only be achieved with the help of investments. ALSO READ: Union fights liquidation of Sapo while govt says it cannot bail it out 'If we had to achieve this revenue stream, there needs to be an investment, whether it's through a partnership, capital injection, equity injection, or raising funds on our own. We need those investments to make Sapo fit for business, to achieve a diversified revenue stream,' said Gani. 'We are forecasting to be breaking even around 2027–2028, which means working capital stress that we feel, and we keep on coming back to the government to say please help us fund this organisation, will fall away as we are on our investments from our diversified revenue stream.' Market threats Among other threats, Sapo will have to outplay increasing competition from more agile and technologically advanced private sector operators amid a decline in demand for traditional postal services. It will have to find growth amid weak economic conditions and increasing business costs, which will negatively impact Sapo's operational costs. There is also a threat of an increase in cyberattacks, which have recently targeted the public sector. Security costs are expected to increase by 6% per annum due to network expansion over the next five years. ALSO READ: Ramaphosa signs Post Office Bill into law 'This one keeps me awake at night, as it is relevant, and we have seen it happening in the public and private sectors. Unfortunately, if the very clever people put their minds into something positive, we would be ahead of this, but these very clever people join the dark side of the world,' said Gani. 'They are always a step ahead. How do you stay on top of cyberattacks? As a national asset, we hold critical information regarding citizens, including their personal information, residences, and addresses. This is something that keeps me awake at night.' Escalating operational costs, including employee wages, transport, and security services, exacerbate Sapo's financial distress. Employee salaries Last month, Sapo and the Unemployment Insurance Fund (UIF) reached an agreement to fund employee salaries for the last half of the year. The Ters scheme will inject R381 million to assist 5 956 employees. Gani lamented that the Sapo's slow pace to embrace digital transformation has limited its ability to compete effectively with the private sector. This is in addition to the limited skills to transform and modernise the entity 'We have multiple vacancies from a leadership perspective. We have limited skills internally.' The Sapo aims to move from a loss of R1.03 billion in 2025 to a net profit of R1.48 billion in 2029. READ NEXT: More millions to save jobs at SA Post Office
IOL News
09-06-2025
- Business
- IOL News
Parliament hearing told that audit crisis in municipalities 'linked to political leadership failures'
Left to right: Chairperson of the Standing Committee on Auditor-General, Wouter Wessels, chairperson of the Portfolio Committee on Cooperative Governance and Traditional Affairs, Dr Zweli Mkhize, and chairperson of the Portfolio Committee on Public Service and Administration, Jan de Villiers. Image: Ayanda Ndamane/Independent Media Dr Zweli Mkhize said that the latest audit outcomes presented by the Auditor-General have shown that the financial and governance crisis in municipalities across the country is deepening, and has dire consequences for service delivery and public trust. Mkhize, chairperson of the Portfolio Committee on Cooperative Governance and Traditional Affairs (COGTA), was discussing the local government 2023/24 audit outcomes during the briefing held by the parliamentary Governance Cluster Oversight committees on Monday. Mkhize was joined by chairperson of the Portfolio Committee on Public Service and Administration, Jan de Villiers, and chairperson of the Standing Committee on Auditor-General, Wouter Wessels. The briefing comes after Auditor-General Tsakani Maluleke found that only 41 municipalities obtained clean audits in the 2023/24 financial year. Maluleke tabled the 2023/24 general report on the local government audit outcomes in Parliament almost two weeks ago. 'While 59 municipalities have improved their audit outcomes since 2020/21 (the last year of the previous administration), 40 have regressed,' Maluleke said. The AG's report also showed that 113 municipalities operated with unfunded budgets and 285 material irregularities with an estimated financial loss amounting to R8.7 billion were identified. 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 ✕ Mkhize said that the integrity and functionality of local government are under immense strain. He said it was unacceptable that, despite municipalities having spent over R1.4 billion on having consultants prepare their financial statements, 59% of those submitted for auditing contained material misstatements. 'It is unacceptable that such exorbitant spending yields so little value. Even more troubling is that many of these municipalities already have permanent staff tasked with performing this work. What we are seeing is not just waste but a failure of systems, leadership and accountability in too many of our municipalities.' He said that the 113 municipalities currently operating on unfunded budgets are planning expenditures far beyond what they can credibly finance, and that this extreme recklessness. 'It amounts to planning for failure. It undermines infrastructure delivery, which has been identified as a key lever for economic recovery and job creation, and contributes to poor project execution, delays, cost overruns, and, in many cases, substandard workmanship,' Mkhize said. 'As a committee, we believe that the shortage of financial skills at the local government level is at a crisis point. This is not merely a technical shortfall, but it strikes at the heart of municipal functionality and the government's ability to deliver services where they are needed most.' He said poor audit outcomes are often rooted in failures of political leadership, weak consequence management and a culture of impunity. Chair of the Portfolio Committee on Cooperative Governance and Traditional Affairs, Dr Zweli Mkhize. Image: Ayanda Ndamane/Independent Media Mkhize said the failure by almost 85% of municipalities to meet even the most basic governance standards directly affects communities in areas such as sanitation, roads, housing, and other essential services. 'In parallel, we must urgently tackle issues of procurement irregularities, corruption and fraud. The use of uncompetitive and unfair supply chain processes continues unabated, as is evident from the AG's report. It is alarming that municipalities continue to award contracts to individuals employed in other spheres of government, despite explicit prohibitions in law.' He explained that Parliament, through the Portfolio Committee on COGTA, will systematically intensify our oversight visits, focusing on the worst-performing municipalities per province and working closely with the executive at all levels to reverse this trajectory. 'As I said before, the committee is no longer interested in excuses. We are calling for performance, consequences, and the prioritisation of quality service delivery to our people.'
IOL News
02-06-2025
- Politics
- IOL News
Organisation that took Ramaphosa to court over Phala Phala scandal faces legal costs after withdrawing application
Attorney Zehir Omar could face the legal bill for taking President Cyril Ramaphosa to court in 2022 and later withdrawing the application. Image: Zelda Venter In 2022, hot on the heels of the start of the Phala Phala scandal, an organisation which calls itself The Society for the Protection of our Constitution (applicant), launched court proceedings for President Cyril Ramaphosa to be held accountable, but the organisation, which meanwhile withdrew the application, is now facing the legal bill. The matter was initially brought before the Gauteng High Court, Pretoria, in 2022 in which the applicant cited the president and the National Prosecuting Authority (NPA). It, amongst others, wanted the court to compel the NPA to prosecute the president in relation to Phala Phala. Ramaphosa has meanwhile been cleared by the ANC's Integrity Commission while the NPA declined to pursue criminal charges on his involvement in the matter. The Phala Phala scandal revolves around the 2020 theft of a large sum of foreign currency hidden in couches ($580 000 or R8.7 million at the time) at Ramaphosa's farm in Limpopo. Ramaphosa has denied any wrongdoing. In defending the 2022 court case - before it was withdrawn - the lawyer acting for the president said the application was meritless and constitutes harassment. It was said that the matter has been addressed by the president, and various investigations have been concluded into it. Although the applicant had withdrawn the application in the meantime, it did not tender to pay the president and the NPA's legal bills in this regard. The matter returned to the Pretoria High Court on Monday, where counsel for the president, Advocate Phumzile Sokhela, said they sought answers as to exactly what the Society for the Protection of our Constitution is and whether it is an NGO which launched the 2022 court case in the public interest, as claimed by it. 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 court was told that if it did not receive these answers, it would ask that attorney Zehir Omar, who was involved in the application, be slapped with the costs order. It has huge financial implications, because if it is found to be a genuine NGO, the 'Biowatch principle will be followed". In South African law, this principle relates to costs orders in constitutional litigation against the state. It generally means that an unsuccessful litigant in such cases against the state should not be ordered to pay the costs of a successful litigant. However, in this case, if the court rules Omar must pay, he faces a huge legal bill. It was explained in court papers by the applicant that the society is an NGO and its aim is to promote respect for the Constitution. It was said that the Society will take all necessary legal action as its members deem fit, to prevent violations of the Constitution. The court was told that since 1999, the organisation has engaged in litigation to prevent the state and its departments from contravening the Constitution. It was explained that it is a voluntary association, which aims to keep the government accountable. The Society also launched court proceedings at the end of last year when it asked that the Government assist the illegal Stilfontein miners who were trapped underground. The court meanwhile reserved judgment regarding who must pay the legal costs in the Phala Phala application.
The Citizen
19-05-2025
- Business
- The Citizen
Another funding injection saves Post Office jobs
The post office will receive R381 million via the Ters scheme over the next six months to preserve the jobs of employees. Almost 6 000 South African Post Office (Sapo) jobs will be saved via another funding injection. Sapo and the Unemployment Insurance Fund (UIF) agreed on a deal to fund employee salaries while the government works to restore the postal service's fortunes. The agreement between the two government entities will see the return of the Temporary Employer-Employee Relief Scheme (Ters) used during the 2020 global health pandemic. Protecting Sapo workers The Ters scheme will inject R381 million into the post office over the next six months to assist 5 956 employees. Sapo had been hoping for a R3 billion bailout at the end of 2024 to avoid liquidation, but National Treasury decided against the move. The Department of Employment and Labour (DEL) on Sunday announced the implementation of the Ters deal, highlighting it as a crucial part of the post office's stabilisation. 'This is a bold and necessary step to protect workers and restore confidence in our public institutions,' DEL Minister Nomokhosazana Meth. 'The Ters programme is not just a financial mechanism, it is a strategic tool to stabilise employment, support economic recovery, and ensure that no worker is left behind,' the minister explained. The funds due to employees will be sent to Sapo every month, with the post office responsible for auditing and compliance throughout the process. 'Sapo is required to submit regular reports, maintain transparent accounting records, and implement a detailed turnaround strategy as a condition of the funding.' The post office has found formulating a turnaround strategy difficult. In 2023, it entered business rescue with R8.7 billion owed to creditors. Sapo received a R2.4 billion bailout from the government in 2023 shortly before receiving a provisional liquidation order, which was added to another R1 billion funding injection in 2019. Despite the entity's troubles, President Cyril Ramaphosa signed the South African Post Office SOC Ltd Amendment Bill late last year. 'The new law enables the post office to serve as a hub for government services and other agency services, and as a digital hub for businesses and communities,' the Presidency stated in December. 'The post office will also be able to serve as a logistics partner to other e-commerce providers – including small enterprises and informal traders – and any future business that the state-owned company may develop to serve users and consumers,' the Presidency added. NOW READ: Union fights liquidation of Sapo while govt says it cannot bail it out
Ammon
12-04-2025
- Sport
- Ammon
Salah's new historic Liverpool salary 'revealed'
Ammon News - With Mohamed Salah on the verge of signing a fresh contract with Liverpool, the Egyptian's new record salary has been revealed. Months of speculation surrounding the future of the Reds' talisman appear close to ending, as it has been widely reported that the 32-year-old is nearing agreement on a new deal with the six-time European champions. Salah's future at Anfield has been a topic of discussion since the start of the season, after the prolific winger publicly expressed frustration over the lack of negotiations. However, it now seems that a breakthrough has been made in recent weeks, and the English giants are set to tie down one of their greatest-ever players to new terms. When Liverpool last extended his contract in 2022, they made Salah the highest-paid player in the club's history by offering him £350 000 (R8.7 million) per week. Now, according to The Sun, the Premier League champions-elect will increase that by £50 000 (R1.2 million), with Salah poised to earn £400 000 (R10 million) per week on a brand-new two-year extension. Should he sign, and remain at the club for the duration of the mooted deal, his time at Liverpool will stretch to a decade, having joined from AS Roma in 2017. Since arriving on Merseyside, Salah has consistently performed at a world-class level, scoring 243 goals and providing 111 assists in 394 appearances. He will undoubtedly add to his legend before he departs. Soccer Laduma
