The Post Office owes the Receiver of Revenue R600-million in outstanding pay-as-you-earn contributions. Put differently, the PO continues to pay its workers their full salaries and probably deducts their PAYE contributions — but then doesn’t pay the money over to SARS.
The financial crisis at the SA Post Office has become so serious that the state-owned entity owes millions of rands to the SA Revenue Service for taxes relating to salary payments, and has battled to pay medical aid contributions on behalf of its 16,600 workers.
Mona, who has been in the top job for six months, said that as of June 2021, the Post Office owes SARS R600-million in outstanding PAYE contributions. Put differently, the Post Office continues to pay its workers their full salaries and probably deducts their PAYE contributions — but doesn’t hand over the deductions to SARS. Mona also said the Post Office is in arrears on medical aid contributions on behalf of its workers to the tune of R600-million.
Deducting from workers’ salaries and not handing the funds over to relevant authorities such as SARS is illegal, and the pernicious behaviour carries sanctions, including criminal prosecution or an organisation being slapped with a large bill for arrears. DA MP Alf Lees, who is a member of the committee, has brought up the possibility of past and current Post Office board members and executives facing personal liability — including criminal charges — for how they managed the state-owned entity. He also proposed that some directors/executives be declared delinquent directors, which would prevent them from being appointed as directors at any company.
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