The National Treasury revealed that the South African Post Office’s (SAPO) financial position continued deteriorating this year. Images-SAPost Office/Canva
SA Post Office’s rescue plan: ‘Uncaring and destroys livelihoods’
The SA Post Office rescue plan has projected 6000 job losses and 420 branch closures and the severe crisis sparked outrage from the DA.
The National Treasury revealed that the South African Post Office’s (SAPO) financial position continued deteriorating this year. Images-SAPost Office/Canva
The South African Post Office (SAPO) announced its business rescue plan, projecting job cuts of 6 000 and the closure of 420 branches nationwide.
This severe crisis, rooted in ANC mismanagement, worsens unemployment and poses challenges for vulnerable citizens reliant on the Post Office, according to the Democratic Alliance(DA).
In addition to postal services, SASSA beneficiaries depend on the Post Office for social grant collection.
ALSO READ:SA Post Office to retrench 6000 workers and close more branches
SA POST OFFICE PLAN DEEMED UNCARING AND DESTRUCTIVE
Prior branch closures meant rural beneficiaries incurred personal travel expenses over long distances. Recent closure announcements raise concerns about unaffordable commutes.
In urban areas, longer queues and wait times are expected, adding to the existing issue of beneficiaries queuing for days.
Despite receiving R7.9 billion in taxpayer funds from 2014 to 2019, SAPO’s condition has consistently worsened.
ALSO READ: SASSA R350 grant: SA Post Office to stop paying beneficiaries
Provisionally liquidated in February due to a default on its R12.5 billion debt, it received R2.4 billion in the National Budget. With an additional R3.8 billion expected in the Medium-Term Budget Policy Statement (MTBPS).
POST OFFICE TO RETRENCH 6000 WORKERS
In February this year, one of its creditors placed SAPO under provisional liquidation, and its debts stood at some R4 billion. The Cabinet approved a voluntary business rescue based on a continuity report.
In 2022, thousands of workers were retrenched while a number of branches were either merged or closed, which affected mostly those in rural areas.
ALSO READ: SASSA R350 grant: SA Post Office to stop paying beneficiaries
According to SAPO’s chief executive, Nomkhita Mona, the company hasn’t recorded a profit since 2004, and its financial troubles began 17 years ago.
