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SA Post Office could join SAA in succumbing to effects of COVID-19

The Department of Communications and Digital Technologies briefe Parliament about its programmes and projects dealing with the coronavirus.

FILE:  The department said there had always been systemic issues plaguing the Post Office even before the pandemic and lockdown. Picture: @PostofficeSa/Twitter.

CAPE TOWN - The South African Post Office (Sapo) could join the likes of South African Airways (SAA) as one of the state-owned entities that succumb to the effects of COVID-19.

MPs received an update on the financial health of the entity on Tuesday night.

The Department of Communications and Digital Technologies briefed Parliament about its programmes and projects dealing with the coronavirus.

The department said there had always been systemic issues plaguing the Post Office even before the pandemic and lockdown.

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

He warned that paying salaries could soon become a problem: “I wouldn’t like that the Post Office is going to be one of the entities that will be severely affected."

Nkuna said another concern was the fact that they had more than 9,000 pay points for social grants with previous contractor Cash Paymaster Services - but that number had declined significantly.

He said in the age of COVID-19, people who usually went to the Post Bank were now also collecting money at South African Social Security Agency pay points and at grocery retailers.