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
      Big Microsoft 365 price increases coming next year

      Big Microsoft price increases coming next year

      5 December 2025
      Vodacom to take control of Safaricom in R36-billion deal - Shameel Joosub

      Vodacom to take control of Safaricom in R36-billion deal

      4 December 2025
      Black Friday goes digital in South Africa as online spending surges to record high

      Black Friday goes digital in South Africa as online spending surges to record high

      4 December 2025
      BYD takes direct aim at Toyota with launch of sub-R500 000 Sealion 5 PHEV

      BYD takes direct aim at Toyota with launch of sub-R500 000 Sealion 5 PHEV

      4 December 2025
      'Get it now': Takealot in new instant deliveries pilot

      ‘Get it now’: Takealot in new instant deliveries pilot

      4 December 2025
    • World
      Amazon and Google launch multi-cloud service for faster connectivity

      Amazon and Google launch multi-cloud service for faster connectivity

      1 December 2025
      Google makes final court plea to stop US breakup

      Google makes final court plea to stop US breakup

      21 November 2025
      Bezos unveils monster rocket: New Glenn 9x4 set to dwarf Saturn V

      Bezos unveils monster rocket: New Glenn 9×4 set to dwarf Saturn V

      21 November 2025
      Tech shares turbocharged by Nvidia's stellar earnings

      Tech shares turbocharged by stellar Nvidia earnings

      20 November 2025
      Config file blamed for Cloudflare meltdown that disrupted the web

      Config file blamed for Cloudflare meltdown that disrupted the web

      19 November 2025
    • In-depth
      Jensen Huang Nvidia

      So, will China really win the AI race?

      14 November 2025
      Valve's Linux console takes aim at Microsoft's gaming empire

      Valve’s Linux console takes aim at Microsoft’s gaming empire

      13 November 2025
      iOCO's extraordinary comeback plan - Rhys Summerton

      iOCO’s extraordinary comeback plan

      28 October 2025
      Why smart glasses keep failing - no, it's not the tech - Mark Zuckerberg

      Why smart glasses keep failing – it’s not the tech

      19 October 2025
      BYD to blanket South Africa with megawatt-scale EV charging network - Stella Li

      BYD to blanket South Africa with megawatt-scale EV charging network

      16 October 2025
    • TCS
      TCS+ | How Cloud on Demand helps partners thrive in the AWS ecosystem - Odwa Ndyaluvane and Xenia Rhode

      TCS+ | How Cloud On Demand helps partners thrive in the AWS ecosystem

      4 December 2025
      TCS | MTN Group CEO Ralph Mupita on competition, AI and the future of mobile

      TCS | Ralph Mupita on competition, AI and the future of mobile

      28 November 2025
      TCS | Dominic Cull on fixing South Africa's ICT policy bottlenecks

      TCS | Dominic Cull on fixing South Africa’s ICT policy bottlenecks

      21 November 2025
      TCS | BMW CEO Peter van Binsbergen on the future of South Africa's automotive industry

      TCS | BMW CEO Peter van Binsbergen on the future of South Africa’s automotive industry

      6 November 2025
      TCS | Why Altron is building an AI factory - Bongani Andy Mabaso

      TCS | Why Altron is building an AI factory in Johannesburg

      28 October 2025
    • Opinion
      Your data, your hardware: the DIY AI revolution is coming - Duncan McLeod

      Your data, your hardware: the DIY AI revolution is coming

      20 November 2025
      Zero Carbon Charge founder Joubert Roux

      The energy revolution South Africa can’t afford to miss

      20 November 2025
      It's time for a new approach to government IT spend in South Africa - Richard Firth

      It’s time for a new approach to government IT spend in South Africa

      19 November 2025
      How South Africa's broken Rica system fuels murder and mayhem - Farhad Khan

      How South Africa’s broken Rica system fuels murder and mayhem

      10 November 2025
      South Africa's AI data centre boom risks overloading a fragile grid - Paul Colmer

      South Africa’s AI data centre boom risks overloading a fragile grid

      30 October 2025
    • Company Hubs
      • 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
      • 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
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • 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



    Andrew Nongogo Post Office Rosey Sekese Siyabonga Cwele
    Subscribe to TechCentral Subscribe to TechCentral
    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

    Government seeks private sector partners to rebuild broken Post Office

    Government seeks private sector partners to rebuild broken Post Office

    19 November 2025
    TechCentral Nexus S0E4: Takealot's big Post Office jobs plan

    TechCentral Nexus S0E4: Takealot’s big Post Office jobs plan

    4 July 2025
    'Get it now': Takealot in new instant deliveries pilot

    Takealot considering mass hiring of former Post Office staff

    3 July 2025
    Company News
    AI is not a technology problem - iqbusiness

    AI is not a technology problem – iqbusiness

    5 December 2025
    Telcos are sitting on a data gold mine - but few know what do with it - Phillip du Plessis

    Telcos are sitting on a data gold mine – but few know what do with it

    4 December 2025
    Unlock smarter computing with your surface Copilot+ PC

    Unlock smarter computing with your Surface Copilot+ PC

    4 December 2025
    Opinion
    Your data, your hardware: the DIY AI revolution is coming - Duncan McLeod

    Your data, your hardware: the DIY AI revolution is coming

    20 November 2025
    Zero Carbon Charge founder Joubert Roux

    The energy revolution South Africa can’t afford to miss

    20 November 2025
    It's time for a new approach to government IT spend in South Africa - Richard Firth

    It’s time for a new approach to government IT spend in South Africa

    19 November 2025

    Subscribe to Updates

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

    Latest Posts
    Big Microsoft 365 price increases coming next year

    Big Microsoft price increases coming next year

    5 December 2025
    AI is not a technology problem - iqbusiness

    AI is not a technology problem – iqbusiness

    5 December 2025
    Vodacom to take control of Safaricom in R36-billion deal - Shameel Joosub

    Vodacom to take control of Safaricom in R36-billion deal

    4 December 2025
    Black Friday goes digital in South Africa as online spending surges to record high

    Black Friday goes digital in South Africa as online spending surges to record high

    4 December 2025
    © 2009 - 2025 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}