SA state company owes R245 million to 2,000 suppliers
The SA Post Office (SAPO) owes almost R245 million to more than 2,000 suppliers, and is in arrears of over six months.
This is according to Minister of Telecommunications and Postal Services, Dr Siyabonga Cwele, who was responding to a written Parliamentary question.
A further 879 creditors remain unpaid for over 60 days, with 1,804 unpaid for more than 30 days, the DA said on Wednesday (15 July).
“This total amount owed to creditors for more than 30 days is unclear, but what is apparent is that this amount is much more than the organisation’s total current overdraft facilities at commercial banks, meaning that the SAPO cannot pay its current debts,” the DA said.
The political party also pointed to reports suggesting that post offices are closing due to non-payment of rent, “and once again payment of SAPO employees’ salaries is now in arrears, specifically at the courier and freight group which includes XPS, PX, Speed Services and Docex”.
The SA Post Office Strategic Corporate Plan tabled before the Telecommunications and Postal Services Portfolio Committee in May 2015 noted that the SAPO was not generating positive cash flows.
To this end, the short-term overdraft of R270 million was maintained, with further borrowings of R1.2 billion guaranteed by government, the DA said.
“That SAPO creditors, many of which are small and medium sized enterprises, are used to render services, which then remain unpaid for, is unconscionable.”
“Business owners and their employees depend on the timely payment of accounts for services rendered, and the SAPO failure to meet this obligation means smaller suppliers will simply go out of business,” said Cameron MacKenzie, DA shadow deputy minister of Telecommunications and Postal Services.
Since the SAPO Board was forced to resign in November last year,the state entity’s Board positions remain unfilled.
“SAPO is currently leaderless and cashless,” MacKenzie said.
“While state-owned companies can turn to government for tax-payer funded bailouts or loan guarantees, the small businesses SAPO owes money to in the private sector have no such luxury. They are largely dependent on securing credit lines from commercial lenders, often at punitive interest rates, in order to keep their businesses afloat.”
“In an economy where more than 450,000 jobs have been lost this year, government talks of small business development, growth through the SMME sector and reducing unemployment, while the fact is that by neglecting to pay its suppliers, thousands of jobs are placed in jeopardy,” MacKenzie said.
More on SAPO
SA Post Office axing 5,000 jobs
Post Office quietly hikes prices
SA Post Office expects R1.3 billion loss
SA Post Office fingered for R2.1 billion irregular expenditure
Loading ...