Paying salaries at SA Post Office could soon become a problem

The South African Post Office (Sapo) might soon join the likes of South African Airways (SAA) as one of the state-owned entities that succumb to the effects of Covid-19.

The department of communications and digital technologies briefed parliament on Tuesday night about its programmes and projects dealing with the coronavirus, as reported by EWN.

MPs were informed that the department had long-standing systematic issues and the pandemic had worsened the already dire situation, warning that salaries could soon become a problem.

Director general Robert Nkuna said: “I wouldn’t like that the post office is going to be one of the entities that will be severely affected. ”

He told the committee that the department had asked the Sapo for a report on its financial health so they can assess the situation.

Another issue for Sapo is the previous contract with Cash Paymaster Services, which had more than 9,000 pay points for social grants. But this number had declined massively because beneficiaries could now collect their money at South African Social Security Agency pay points and at grocery retailers, Nkuna said.

(Compiled by Sandisiwe Mbhele)

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