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The Citizen
12 hours ago
- Business
- 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
The Citizen
19-05-2025
- Politics
- The Citizen
Top 10 stories of the day: Mayfair fire kills 4 children
Here's your daily news update for Monday, 19 May 2025: An easy-to-read selection of our top stories. In the news today, the Mayfair community in Johannesburg is in mourning after four children, under the age of two years old, tragically died in a house fire on Monday morning. Meanwhile, South Africa's delegation to the United States is en route to its most high-profile diplomatic engagement in recent memory, and the members have had things to say about SA–USA relations in 2025. Furthermore, almost 6 000 South African Post Office (Sapo) jobs will be saved via another funding injection. Weather tomorrow: 20 May 2025 Disruptive rain and damaging winds are forecast for parts of the Western Cape, with officials warning of flooding and travel disruptions. Full weather forecast here. Stay up to date with The Citizen – More News, Your Way. House fire claims lives of four young children in Mayfair The Mayfair community in Johannesburg is in mourning after four children, under the age of two years old, tragically died in a house fire on Monday morning. The City of Johannesburg Emergency Management Services (EMS) responded to a house on fire near 8th Avenue and West Street at around 11am. Picture: Supplied. EMS spokesperson Robert Mulaudzi said that upon arrival, the firefighters found the house on fire, and they started firefighting operations. 'While conducting a search and rescue operation, four bodies of young kids ranging from two years and below were recovered. Unfortunately, they were confirmed dead on the scene by Gauteng EMS paramedics,' Mulaudzi said. CONTINUE READING: House fire claims lives of four young children in Mayfair What those on the plane to Washington said prior to Trump-Ramaphosa showdown South Africa's delegation to the United States is in transit en route to its most high-profile diplomatic engagement in recent memory. President Cyril Ramaphosa is leading a team of four ministers this week for bilateral discussions with the Trump administration. President Cyril Ramaphosa in the Oval Office in 2022. Picture: AFP / Saul Loeb The president is set to meet his US counterpart on Wednesday in Washington, and the nation is eager to see how the heads of state's contrasting personalities mesh. The delegation consists of Minister of International Relations Ronald Lamola, Agriculture Minister John Steenhuisen, Trade and Industry Minister Parks Tau, and Minister in the Presidency Khumbudzo Ntshavheni. CONTINUE READING: What those on the plane to Washington said prior to Trump-Ramaphosa showdown More millions to save jobs at SA Post Office 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. Picture: The Citizen / Michel Bega 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. The Ters scheme will inject R381 million into the post office over the next six months to assist 5 956 employees. CONTINUE READING: More millions to save jobs at SA Post Office Chiefs coach Nabi – 'This news is bad for me' Kaizer Chiefs head coach Nasreddine Nabi has denied that he is set to be sacked at the end of this season. A report in the Sunday Times on May 11 claimed Nabi was going to be dismissed, even after winning the Nedbank Cup. Nasreddine Nabi has denied he is set to be fired by Kaizer Chiefs. Picture: Backpagepix 'This news came from journalists, not from the club. Why all the time is it 'Nabi, Nabi, Nabi,' for what? All of Africa has been calling me to come coach them, thinking I'm a free agent,' Nabi told journalists on Saturday, after Amakhosi's 1-1 Betway Premiership draw with Sekhukhune United at the Peter Mokaba Stadium in Polokwane. CONTINUE READING: Chiefs coach Nabi – 'This news is bad for me' Will Ramaphosa testify in Phala Phala trial? NPA clears the air At least 22 witnesses are lined up to testify in the Phala Phala trial, the National Prosecuting Authority (NPA) says. Imanuwela David, Ndilinasho Joseph and Froliana Joseph appeared in the Modimolle Magistrate's Court on Monday in connection with the theft $580 000 (about R10.4 million) at President Cyril Ramaphosa's farm in February 2020. The entrance of President Cyril Ramaphosa's Phala Phala game farm in Limpopo. Picture: NPA Limpopo spokesperson Mashudu Malabi-Dzhangi said the 22 witnesses lined up for the trial showed that the state had a strong case against the three. However, the president will not be among the witnesses. 'We can get someone from the farm. It could be a manager or administrator to be part of the trial, not the president,' Malabi-Dzhangi told the SABC. CONTINUE READING: Will Ramaphosa testify in Phala Phala trial? NPA clears the air Here are five more stories of the day: Yesterday's News recap READ HERE: Top 10 stories of the day: Omotoso deported | ANCWL deputy president dies | SANDF troops in DRC
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
