The South African Post Office (SAPO) business rescue practitioners have declared the state-owned entity stabilized after nearly three years under administration, but unions have dismissed the claims as “laughable” and accused the rescue team of misleading Parliament and workers.
Rescue Practitioners Claim Progress
During a briefing before Parliament’s Communications and Digital Technologies Committee, the business rescue team outlined the final stages of the process, which included retrenching over 4,000 employees and closing hundreds of branches nationwide. The practitioners asserted that SAPO is now on a more sustainable path, with operational control set to return to executive management soon.
Unions Denounce “Sham” Process
Kodisang Bokaba, spokesperson for the South African Postal Workers Union (SAPWU) and the Democratic Postal and Communications Union (DEPACU), rejected the practitioners’ assessment, calling the entire rescue process a “disaster.”
“The business rescue practitioners have misled Parliament and workers. There has been no meaningful consultation with organized labor, and the only achievement they can boast about is retrenching thousands of workers,” Bokaba stated.
He criticized the lack of new business ventures, deteriorating infrastructure, and failure to address long-standing salary disputes. SAPO employees have reportedly gone nearly a decade without wage increases, despite rising living costs.
Allegations of Mismanagement and Pending Litigation
Bokaba warned that once the practitioners submit their final compliance report, unpaid creditors could take legal action to liquidate the Post Office. He also accused the government of ignoring a court order to inject R3.8 billion into SAPO, further destabilizing the entity.
“The workers have subsidized the government by working without salary adjustments for years. You cannot claim a successful turnaround when the buildings are crumbling, no new revenue streams exist, and employees remain neglected,” he said.
Dispute Over Consultations
The rescue practitioners claimed they had engaged with employee committees, including unions and non-unionized staff, but Bokaba dismissed this as “a total lie,” citing letters requesting meetings that were ignored.
“We have written to Parliament, exposing how they have misled the public. The workers demand answers—when will these practitioners leave, and who will take over?” he asked.
Calls for Meaningful Partnerships
Bokaba urged the government to facilitate genuine partnerships that bring capital and innovation into SAPO, rather than what he described as corrupt and inefficient deals. He emphasized that postal workers remain committed but require urgent intervention to salvage the institution.
As the business rescue team prepares to exit, tensions between labor and management persist, with unions demanding accountability and tangible improvements before declaring any success in SAPO’s turnaround.
