Post Office too broke to pay suppliers – owes R485 million

The South Africa Post Office currently owes its suppliers a whopping total of R485 million emanating from 196 unpaid invoices.

POST OFFICE WORST VIOLATOR

This was revealed in a recent reply to a parliamentary question by the DA.

DA Shadow Minister for Communications Solly Malatsi said the South African Post Office was too broke to pay its suppliers, making it one of the worst violators of the government commitment to settle invoices within 30 days.

Malatsi said the figure included 116 invoices worth R119 million which haven’t been paid within the required 30 days period and a further 63 invoices amounting to R270 million over 120 days.

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“What is more concerning is that there is foreseeable hope that the Post Office will be in a position to pay the supplies it owes soon as the Ministry of Telecommunications has confessed in the same parliamentary reply that “…the Post Office does not have the required funds to settle its liabilities.”

“The devastation the delays of much needed payment causes to businesses, many of which are small medium and micro enterprises, with its failure to pay suppliers is destroying the livelihoods of many South Africans.”

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Malatsi said they would continue to utilise all the Parliament accountability mechanisms to push for the payment of government suppliers on time. 

“We encourage all businesses with unpaid invoices to visit the DA’s portal to get assistance from our Shadow Minister on Small Businesses, Henro Kruger.”

Malatsi added that it defied logic why the ANC government persisted with financially unsustainable state owned enterprises such as the Post Office which were chronically dependent on state bailouts instead of making space for private sector investment.

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