Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      AI is breaking the link between university degrees and employment

      AI is breaking the link between university degrees and employment

      4 March 2026
      Syria seeks new mobile operator to replace MTN after years of limbo - Ralph Mupita

      Syria seeks new mobile operator to replace MTN after years of limbo

      4 March 2026
      AI, crypto and biometrics reshaping how South Africans pay, says Visa

      AI, crypto and biometrics reshaping how South Africans pay, says Visa

      4 March 2026
      FNB cuts Speedpoint fees, pushes card terminals as SME platforms - Ghana Msibi - FNB Speedpoint Counter

      FNB cuts Speedpoint fees, pushes card terminals as SME platforms

      4 March 2026
      Business confidence is on the mend in South Africa

      Business confidence is on the mend in South Africa

      4 March 2026
    • World
      OpenAI secures $840-billion valuation in latest funding round

      OpenAI secures $840-billion valuation in latest funding round

      1 March 2026

      Stripe mulling bid for PayPal: report

      25 February 2026
      Xbox chief Phil Spencer retires from Microsoft

      Xbox chief Phil Spencer retires from Microsoft

      22 February 2026
      Prominent Southern African journalist targeted with Predator spyware

      Prominent Southern African journalist targeted with Predator spyware

      18 February 2026
      More drama in Warner Bros tug of war

      More drama in Warner Bros tug of war

      17 February 2026
    • In-depth
      The last generation of coders

      The last generation of coders

      18 February 2026
      Sentech is in dire straits

      Sentech is in dire straits

      10 February 2026
      How liberalisation is rewiring South Africa's power sector

      How liberalisation is rewiring South Africa’s power sector

      21 January 2026
      The top-performing South African tech shares of 2025

      The top-performing South African tech shares of 2025

      12 January 2026
      Digital authoritarianism grows as African states normalise internet blackouts

      Digital authoritarianism grows as African states normalise internet blackouts

      19 December 2025
    • TCS
      TCS+ | Bolt ups the ante on platform safety - Simo Kalajdzic

      TCS+ | Bolt ups the ante on platform safety

      4 March 2026
      Watts & Wheels S1E4: 'We drive an electric Uber'

      Watts & Wheels S1E4: ‘We drive an electric Uber’

      10 February 2026
      TCS+ | How Cloud On Demand is helping SA businesses succeed in the cloud - Xhenia Rhode, Dion Kalicharan

      TCS+ | Cloud On Demand and Consnet: inside a real-world AWS partner success story

      30 January 2026
      Watts & Wheels S1E4: 'We drive an electric Uber'

      Watts & Wheels S1E3: ‘BYD’s Corolla Cross challenger’

      30 January 2026
      Watts & Wheels S1E4: 'We drive an electric Uber'

      Watts & Wheels S1E2: ‘China attacks, BMW digs in, Toyota’s sublime supercar’

      23 January 2026
    • Opinion
      The AI fraud crisis your bank is not ready for - Andries Maritz

      The AI fraud crisis your bank is not ready for

      18 February 2026
      A million reasons monopolies don't work - Duncan McLeod

      A million reasons monopolies don’t work

      10 February 2026
      The author, Business Leadership South Africa CEO Busi Mavuso

      Eskom unbundling U-turn threatens to undo hard-won electricity gains

      9 February 2026
      South Africa's skills advantage is being overlooked at home - Richard Firth

      South Africa’s skills advantage is being overlooked at home

      29 January 2026
      Why Elon Musk's Starlink is a 'hard no' for me - Songezo Zibi

      Why Elon Musk’s Starlink is a ‘hard no’ for me

      26 January 2026
    • Company Hubs
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » News » Post Office on ‘brink of collapse’

    Post Office on ‘brink of collapse’

    By Sapa Reporter15 October 2014
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp
    Telecoms and postal services director-general Rosey Sekese
    Telecoms and postal services director-general Rosey Sekese

    The cash-strapped, strike-hammered South African Post Office is on the brink of collapse, MPs heard on Wednesday. “The financial situation of the Post Office is dire. It is seriously dire,” public affairs GM Andrew Nongogo told parliament’s communications and public enterprises select committee.

    Referring to the ongoing strikes that have crippled Post Office operations over the past 10 weeks, he warned the parastatal was losing customers and money, and suggested there might not be enough to pay salaries at the end of the month.

    “The fact that we are not at work right now [due to the strike], and we are losing customers, we are losing the public in general, means that there is no money — that should be coming into the Post Office — that would allow us even go and continue to pay salaries on the 25th.”

    Responding to questions, he later repeated the warning. “If we don’t go to work, we don’t get money in, and if we don’t get money in, we come back to the same position that you are asking me about — what will happen on the 25th of this month, of next month, etc? So, that’s how serious the position is.”

    Last month, there was a hiccup with the payment of salaries, which Nongogo described as an anomaly.

    “That was really a serious and unfortunate anomaly that happened last month,” he said, adding that salaries were paid at the time, but a day late.

    Telecommunications and postal services director-general Rosey Sekese said the Post Office was facing a crisis and an uncertain future.

    “We acknowledge that the entity is in a crisis. If we continue, and we don’t get business and the entity operating, we fear we will have a scenario none of us would want,” she warned.

    The labour and business situation at the Post Office meant it was experiencing “serious challenges” with regard to its finances. “This has resulted in us having intense discussions with the national treasury, and also with minister of finance [Nhlanhla Nene], in terms of how they can assist us in stabilising the finances of the entity.”

    These discussions were not yet concluded.

    Responding to a question on the future viability of the Post Office, she said her department was trying to develop a sustainable turnaround plan for the entity. “Unless we have that on the table, I really fear in terms of what would happen. Because that’s a reality we are faced with.”

    Her department was interacting with the Post Office on a day-to-day basis. She pinned the blame for its financial situation on modern technology and mass media. “Sixty-five percent of the revenue comes from its main business. Now this whole issue of technology is impacting massively on the Post Office.”

    The post office had to diversify to cope with this new technology, she said.

    On the strike, department spokesman Siya Qoza told the committee this was ongoing and violent.

    Postal services minister Siyabonga Cwele had called on workers to return to work while issues were being resolved. “This is primarily because we are acutely aware of the negative impacts the strike is having on all South Africans.”

    Siyabonga Cwele
    Siyabonga Cwele

    The department was being bombarded with calls from those affected. “At this stage, the response [to the minister’s call] is a bit mixed,” he conceded, adding that the strike was “an industrial action that is not protected”.

    On the problems facing the Post Office, he said these would not be resolved quickly. “It is quite clear that the challenges we are facing at the Post Office will not be resolved in one day, even in one month. It is going to take time.”

    Wednesday’s meeting was called by the committee to get an explanation from the department on media reports of irregular spending of R2,1bn by the Post Office during the past (2013/2014) financial year.

    Sekese said the department had been “taken aback” by the reports. According to notes tabled by the department at the briefing, the reported R2,1bn related to the irregular expenditure as reported for the 2012/2013 financial year, and not for 2013/2014.

    Sekese suggested a “copy and paste” mistake had occurred in a document seen by the media. “The figure was reported in the previous financial year, but the [presenter] … did a mistake by carrying the figure that was in the previous year into the 2013/2014 presentation,” she explained.

    The Post Office has yet to table its 2013/2014 annual report. The committee also heard on Wednesday that the company had tapped into a surplus R400m connected to its employees’ pension fund. Qoza said the Post Office had received official clearance to do so.

    “The figure was about R400m … it was basically the surplus that was identified,” he said.

    Earlier, Nongogo gave members an assurance that employees’ contributions were safe.

    “I can categorically state that no monies have been taken by the post office from the pension fund… nothing of the sort has taken place,” he said.  — Sapa

    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    Andrew Nongogo Post Office Rosey Sekese Siyabonga Cwele
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleIcasa plays down councillors’ exit impact
    Next Article Jordaan, Harris linked to iBurst bid

    Related Posts

    Post Office still faces liquidation risk as policy rift widens - Mondli Gungubele

    Post Office still faces liquidation risk as policy rift widens

    9 February 2026
    Why Solly Malatsi was right to bury the Post Office monopoly

    Why Solly Malatsi was right to bury the Post Office monopoly

    4 January 2026
    Malatsi buries Post Office's long-dead monopoly

    Malatsi buries Post Office monopoly the market ignored

    18 December 2025
    Company News
    Why South Africa's SMEs need digital partners, not more digital tools - Sannesh Beharie, managing executive at Vodacom Business

    Why South Africa’s SMEs need digital partners, not more digital tools

    4 March 2026
    From seats to outcomes - why enterprise software is being repriced - Clickatell

    From seats to outcomes – why enterprise software is being repriced

    4 March 2026
    Paratus Zambia adds next generation fixed wireless technology

    Paratus Zambia adds next-generation fixed-wireless technology

    3 March 2026
    Opinion
    The AI fraud crisis your bank is not ready for - Andries Maritz

    The AI fraud crisis your bank is not ready for

    18 February 2026
    A million reasons monopolies don't work - Duncan McLeod

    A million reasons monopolies don’t work

    10 February 2026
    The author, Business Leadership South Africa CEO Busi Mavuso

    Eskom unbundling U-turn threatens to undo hard-won electricity gains

    9 February 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    AI is breaking the link between university degrees and employment

    AI is breaking the link between university degrees and employment

    4 March 2026
    Syria seeks new mobile operator to replace MTN after years of limbo - Ralph Mupita

    Syria seeks new mobile operator to replace MTN after years of limbo

    4 March 2026
    AI, crypto and biometrics reshaping how South Africans pay, says Visa

    AI, crypto and biometrics reshaping how South Africans pay, says Visa

    4 March 2026
    FNB cuts Speedpoint fees, pushes card terminals as SME platforms - Ghana Msibi - FNB Speedpoint Counter

    FNB cuts Speedpoint fees, pushes card terminals as SME platforms

    4 March 2026
    © 2009 - 2026 NewsCentral Media
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}