Johannesburg - The SA Post Office (SAPO) has raised R3,7 billion from local financial institutions to prop up the cash-strapped state enterprise.
Telecommunications and Postal Services Siyabonga Cwele said R1 billion of the amount was received a few months ago after the organisation went into the markets to raise capital using its government guarantee. This was followed by a R2 billion cash injection received recently.
“I’m happy the board and management were able to raise the money locally. The money will help us turn around the SAPO, pay monies owed to workers and suppliers,” Cwele told reporters in Johannesburg on Friday.
Besides monies owed to workers due to unpaid salaries, the SAPO owed suppliers R900 million, said board chairman Simosezwe Lushaba.
“The availability of funding means we will be able to trade and drive our turn-around strategy. We are in a position to pay suppliers from the end of this month. Conclusion of agreements with labour also signals a new dawn for SAPO,” Lushaba said.
Workers would be paid salaries owed backdated to the 2014/2015 financial year. A 6.5 percent salary increase agreement has been concluded with labour unions for the present financial year.
“The salary increase will be backdated to April 1 and payments effected from August 25. Current part-time staff members would be converted to permanent, and casual workers to temporary staff from August 1,” said Cwele.
The cash injection would enable the SAPO business to “float” for the next three years, said Cwele.
A lengthy strike and poor financial performance crippled the post office in 2014, leading to it being technically insolvent, and at one stage not being able to pay staff salaries in full.
African News Agency