DA: Liquidation only option for cash-strapped SA Post Office

DA: Liquidation only option for cash-strapped SA Post Office

The DA believes the time has come for the cash-strapped South African Post Office to be liquidated.

post office

The Post Office has suffered repeated annual losses, while six thousand jobs are also on the line due to looming retrenchments. 

The state-owned entity's debts stand at some R4 billion.

It has been placed under provisional liquidation after a successful court application by one of its creditors. 

The DA's Diane Kohler Barnard says it's one of government's most mismanaged entities.

"While the liquidators seek a pay-out for their client we equally hope that not only are personal debts covered for those who rented properties for Post Office branches, which were then surreptitiously closed, leaving behind massive debts, but that the Post Office employees' and retired workers' medical aid, UIF and pension contributions which the management has carefully and criminally failed to pay over for a number of years, are met in full."

In February, Finance Minister Enoch Godongwana set aside a R2.4 billion, money the DA says should be used to pay benefit contributions for staff and pensioners.

"The DA is against any form of bailout and will write to the Minister of Finance and call on him to confirm that there is no new bailout for SAPO but if there is, it must be used to pay the benefit contributions for staff and pensioners, not to cover SAPO debt to avoid liquidation," says Barnard.

Listen to the latest Jacaranda FM sports bulletin


Show's Stories