SAPO IS IN DIRE STRAITS

14 August 2015

Congress of the People is shocked that the tripartite alliance is staying silent on the extremely deep crisis afflicting the South African Post Office.

We drew attention to the fact that many suppliers had not been paid for a long while. We have now learnt that all of Siemen technical staff in all SAPO sorting centres were retrenched at the end of July. The Siemens sorting machines are now switched off. Siemens had not been paid for a whole year.

This is a severe indictment on government itself.

SAPO staff are now facing short time. Money to buy fuel for its trucks is unavailable. SAPO is really grinding to a standstill.

The government, led by President Zuma and the tripartite alliance, is unable to manage state enterprises because of its ill-advised deployment of unqualified and unsuitable cadres to head up state enterprises. Consequently, the nation is experiencing the enormous pain and cost of that policy.

People are already taking their business elsewhere. The trust in SAPO has evaporated. Government has allowed SAPO to slide to such an extent that rescue attempts will be made enormously difficult.

Cope has also been harping on the depletion of the national treasury. The coffers that were once full when Thabo Mbeki was in office are now empty. The tax cuts we enjoyed under the Mbeki government will now be reversed. The season of higher taxes is in front of us.

Treasury has no means to pump money into failing state enterprises.

Cope sticks by its recommendation that 55% of SAPO should be sold off to the private sector. If this matter is delayed any further there may be nothing left to sell.

Statement issued by Dennis Bloem, COPE spokesperson, August 15 2015