The situation at SA’s state-owned national postal service has continued on a downward spiral, with an electricity disconnection blitz in Nelson Mandela Bay plunging more SA Post Office branches into darkness.
This, after the business rescue practitioners for the SA Post Office confirmed it would close at least 400 of the more than 1,400 postal outlets throughout the country, and shed thousands of jobs.
Metro debt and suspension services manager Joel Swarts said SA Post Office branches in Gqeberha were in arrears of at least R4.8m. These included:
- Govan Mbeki: R4,330,199.95
- Walmer: R315,542.10
- Sidwell: R71,098.74
- West End: R62,543.18
- Linton Grange: R29,825.16
The municipality has since disconnected the electricity at four of the five, with the exception of the Govan Mbeki branch.
The Herald’s inquiry into the electricity having been disconnected in February at the main Kariega post office also revealed an outstanding municipal electricity bill of more than R450,000.
“It [Govan Mbeki] has not been disconnected yet,” Swarts said.
“It was part of the blitz last year, but we couldn’t disconnect as it requires the switching department to assist.
“Both [Sidwell and West End branches] were disconnected last year,” Swarts said.
The Walmer Post Office was disconnected in October and the Linton Grange branch has been without lights since July.
The situation has affected the daily affairs of hundreds of post office users, leaving them unable to carry out licence disc renewals, among other essential tasks, with services limited only to courier and parcel delivery.
Joint business rescue practitioner for the SA Post Office, Anoosh Rooplal, said the business rescue team was holding consultations with the relevant post office unions about a retrenchment process.
“We are currently in consultation regarding a Section 189 retrenchment process as per the Labour Relations Act,” Rooplal said.
“The CCMA is facilitating the process.
“Any possible alternatives to retrenchments and branch closures that the unions may have must be heard before we can finalise the facilitation process.
“Until such time, we’re unable to communicate any further news regarding which branches are to be closed and which are to remain open.”
The SA Post Office was put into business rescue on July 10 2023 after a high court judgment.
Subsequently, the joint business rescue practitioners prepared and published an 85-page business rescue plan in November to “restructure and modernise” the postal service.
According to the findings, the company’s financially distressed position was primarily attributed to factors including the SA Post Office incurring operating losses for many years, resulting in accumulated losses of about R19bn as of September 30.
“The operating losses are due to declines in revenue and an unsustainable cost base,” Rooplal and his business rescue partner Juanito Damons said.
Business rescue team spokesperson Louise Brugman previously said the nonpayment of electricity was a reality facing many of the country’s branches “literally due to not having money”.
Municipal spokesperson Sithembiso Soyaya did not respond to several requests for comment.
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