The termination of several value-destroying contracts by the South African Post Office (Sapo) has contributed to the reduction of operational losses of post office, according to Communications Minister Ivy Matsepe-Casaburri.
Responding to a question in Parliament from ANC MP ES Magashule, the minister noted that the savings amounted — or would amount — to nearly R220-million.
Contracts cancelled were with Airworld (involving R96-million with potential savings of R30-million) SF Commercial (with a value of R43-million with potential savings of R40-million) DMC Management (with a value of seven million rand with savings of some five million rand), Mystery Shopper (with a value of R9,2-million with a saving of a similar amount), Twilight (with a value of R12-million with a potential savings value of a similar amount), Strategic Management Partner (New Zealand Post) (with a value of R250-million with an estimated saving of R120-million) Transman (with a value of eight million rand and a saving of one million rand), and with Q-Data (involving seven million rand and a potential saving of R2,5-million).
Wednesday’s adjustments mini-budget noted a provision of R750-million for the recapitalisation of Sapo in 2003/04.
The Ministers’ Committee on the Budget noted Sapo’s liability of this amount arising from depositor funds in the Post Bank, which had been used by Sapo in its operations. The Post Office could not reimburse the funds and in terms of current legislation, government guarantees them, said the Adjusted Estimates of
National Expenditure on November 12. – I-Net Bridge