Admin
05 Oct, 2025
Post Office mismanagement: a wake-up call for real reform
Statement by Nqabayomzi Kwankwa, MP, UDM Deputy President and Leader in Parliament The United Democratic Movement (UDM) notes with grave concern the Auditor-General’s latest findings exposing widespread financial mismanagement at the South African Post Office (SAPO). The report paints a disturbing picture of an institution crippled by irregular expenditure, poor governance, and an almost total breakdown of accountability. This confirms what the UDM has been warning for years, which is that the collapse of SAPO is not the result of underfunding, but of deep-seated mismanagement and lack of strategic direction. The figures laid bare by the Auditor-General reveal an institution that continues to haemorrhage public funds while failing to deliver even the most basic of services to South Africans. The Post Office remains insolvent, unmodernised, and incapable of performing its core mandate. Worse still, the same management failures that bankrupted SAPO are now being rewarded with additional bailouts, while thousands of workers have been retrenched or left unpaid. Treasury confirmed that SAPO will not receive any new financial rescue packages beyond the R381 million allocated through the Unemployment Insurance Fund’s (UIF) Temporary Employee Relief Scheme. The UDM has repeatedly cautioned that using the UIF to bail out failing state entities is a dangerous precedent that places workers’ hard-earned contributions at risk. The UDM reiterates the position we took as early as 2023 and 2024: that the Post Office’s crisis cannot be solved through bailouts and business rescue plans that merely reshuffle management and cut jobs. Instead, SAPO must redefine its role as a modern public utility that meets the needs of the people it serves. The UDM again calls for: 1. SAPO to diversify its services by expanding into insurance, microfinance and other community-based financial services that cater to rural and low-income customers. 2. A strong focus on digital transformation by embracing e-commerce logistics, secure digital postal services and providing public internet access to ensure competitiveness in the 21st century. 3. Greater accountability and oversight, with the Department of Communications and Digital Technologies ensuring that bailout funds are used transparently and that management failures result in real consequences rather than rewards. 4. The protection of workers, as retrenchments cannot be viewed as a genuine reform strategy. Government must instead explore alternatives such as redeployment and retraining through institutions like Productivity South Africa. Like Alexkor, Denel, Eskom, Transnet, Land Bank, Passenger Rail Agency of South Africa, South African Airways, South African Broadcasting Corporation, SAPO has become a symbol of failed oversight, where billions in taxpayer funds are poured into institutions that cannot deliver sustainable or efficient public service SAPO was once a cornerstone of community life; a bridge between people and government. Today, it has become a symbol of failure. The Auditor-General’s report must serve as a wake-up call that the time for patchwork solutions has long passed.
Admin
10 Oct, 2019
South African Post Office Service Sucks: Poor service delivery
The United Democratic Movement (UDM) is disheartened by the poor service rendered by the Post Office, The Tramshed branch in Pretoria (Tshwane) cbd to be precisely has been offline for quite some time. The customers are receiving a raw deal. This post office cannot provide basic services to its customers, for example, one cannot apply for a post box or pay for television licence or do transactions on the atms that are lying there and collecting dusts or certifies documents, etc Not so long ago, Minister Stella Ndabeni-Abrahams has promised an improvement and efficiency within the Post Office, none of that has taken place. When the Minister was re-appointed, the UDM had so much confidence on her but now one can see through her that that she was rhetoric when she committed herself in making the post office more efficient and that it will operate like full- fledged commercial bank. Seemingly, her priorities are skewed as her interest is more on 4IR conferences in each month. On the other side she is taking decisions to shut down some of the branches that are most effective branches, like the one at Arcadia, in Pretoria. The unemployed youth is applying and certifying at the Post Office because it is more convenient to get things done at one place, than having to go to the South African Police Service and then go elsewhere to send documents. The pensioners have been encouraged to make use of Post bank facilities but the big question are, how is this going to be possible if the post office can be “Offline” for months? If a post office in the capital city is failing to deliver basic services, how much more in the rural areas? This is not only affecting the communities but the morals of the Post office staff, it is tiring to tell people one thing that “We are offline”. What happened to the principle “Batho-pele?” The UDM calls on the Minister of Telecommunications and Postal services to take serious of her portfolio and mandate of her department. The role that this SOE plays is central in servicing the communities but its performance leaves a lot to be desired.
