SAPO IN FINANCIAL CRISIS

9 April 2015

The SA Post Office's (Sapo) is dysfunctional. It has been so for quite a while.

SAPO owes Syntell and Siemens millions for their letter sorting machines and it hasn't been able to pay these firms for nearly a year. They have been demanding payment and even threatening to cease operating their machines. To fix its financial dilemma, SAPO has turned to the users of the post office to pay higher charges. How convenient!

As with most parastatals, under this present government, they mess up and it is ordinary South Africans who have to suffer the consequences of above inflation tariff hikes.

Congress of the People has continuously warned the public that this government is putting its political interests above governance and financial management. We urge the public to take heed of how institution after institution is in crisis. They must speak up or face excruciating financial pain.

The cancellation of the econo-parcel service, for example, is going to hit businesses using the postal services, very hard. Publishers of magazines, in particular, may very well go out of business. From having to pay R22.80 previously, customers are now being asked to pay R40.90. An increase in tariff of 80% is unprecedented in our postal service. In fact, it is intolerable.

For how long will South Africans continue to believe in President Zuma's good story narrative when story after story actually turns out to be a lasting nightmare that citizens will have to live with into the future?

SAPO, Eskom and SAA, amongst others, are harming our economy and imposing a heavy financial burden on us hard-pressed South Africans.

Only the loud expression of public dissatisfaction will help to relieve the situation we are in.

Statement issued by Dennis Bloem, COPE spokesman, April 8 2015

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