The Department of Communications and Digital Technologies has not appointed the South African Post Office (Sapo) board of directors despite having advertised non-executive director roles seven months ago.
In February, the department raised eyebrows when it called for the nomination of board members while the company was still in business rescue, a process which had, according to BusinessTech, cost R207.4-million up to March.
The business rescue practitioners (BRPs) Anoosh Rooplal and Juanito Damons were jointly appointed on July 10 2023, following a high court order.
When approached for comment, Kwena Moloto, the communications and technologies ministry’s spokesperson, told Sunday World that the application period for nominations closed on 24 March.
“The appointment of a nomination committee, in line with section 11 of the South African Post Office Act, is being finalised,” said Moloto, without giving specific timelines. “The committee will be responsible for short-listing and interviewing candidates and has 21 days to complete the process.”
Asked if the appointment of the board of directors would result in the contract of the BRPs coming to an end, Moloto said, “The business rescue practitioners’ mandate will come to an end once the court issues an order to set aside the resolution that placed SA Post Office under business rescue, either upon the request of the BRPs themselves or another interested party.”
Labour law expert Tutu Mokoena, who is also the acting general secretary of the still-to-be-registered Integrated Communications Workers Union, said it appeared as if Minister of Communications and Digital Technologies Solly Malatsi lacked interest in fixing the state-owned enterprise.
“It is taking too long to appoint a board, and it is not true that the business rescue practitioners will exit without first delivering on their mandate. They have not delivered on the 18 cents per rand relating to the workers’ retirement fund. The workers are classified as creditors.”
Mokoena was referring to the Post Office’s controversial decision to classify workers as creditors in relation to their pension fund and pay them 18 cents per rand for their pension.
Sunday World understands that Sapo did not remit any contributions to the retirement fund from May 2020 until December 2023. This is despite the company deducting the money from the workers’ salaries. He said this money affects both permanent and retrenched workers.
Mokoena’s union is representing Sapo’s current and retrenched workers.
Though he is against BRPs staying long at Sapo, he said it would be reckless for the business rescue practitioners to exit the post office without concluding the pension payments.
He added that others who were yet to be paid in by the BRPs included statutory creditors like medical aids and Unemployment Insurance Fund, as money deducted from workers’ salaries for years wasn’t paid to these institutions.”
He said the only way BRPs would be able to finalise payments of statutory creditors would be if Sapo could obtain a bailout from the government.
He said he doesn’t think the department would be able to appoint a board before the BRPs concluded creditors payments.
