The Democratic Alliance (DA) has called for accountability and transparency from the Minister of Finance regarding the recent R2.6 billion bailout for the South African Post Office (SAPO). This bailout comes after The Kimberley Prospector reported that one of the best SAPO branches in Hadison Park, in Kimberley, is closing down, and despite the government’s firm commitment to end bailouts due to ongoing corruption, irregular expenditure, and general financial chaos at the SAPO.
The DA is appalled by this decision and is demanding clarity on how this bailout will be used.
The DA has expressed its concern over the SAPO’s continuous mismanagement and corruption, which have resulted in a planned 40% salary reduction for employees and the potential loss of 6 000 jobs. They have also noted the Hawks investigation, which was undertaken at their request, is at an advanced stage and going forward to the National Prosecuting Authority. This investigation relates to the SAPO management taking medical aid, pension, and other ‘contributions’ from staff and pensioners, and not handing them over to the medical aid or pension, but rather using that money elsewhere.
The DA has urged that the R2.6 billion bailout be allocated to fulfilling SAPO’s outstanding financial obligations, including the payment of all outstanding medical aid contributions and pensions, and the proper compensation of the 6 000 employees who are likely to lose their jobs. They have asked the Minister of Finance to provide a detailed report on how the R2.6 billion bailout must be apportioned and to ensure that the money is used for the benefit of SAPO employees, and not on vanity projects to improve the tainted reputations of the inept management team.
The DA’s call for transparency and accountability regarding the bailout is a necessary step in ensuring that SAPO’s employees and pensioners receive the compensation they deserve. Without this transparency and accountability, the R2.6 billion bailout could easily disappear without fulfilling its intended purpose. Therefore, the Minister of Finance must provide a clear plan of how the money will be allocated to ensure that the SAPO’s employees and pensioners receive the help they need.
Tags: DA SAPO South African Postal Service