Sapo CEO Nomkhita Mona said several factors are “shackling” the Post Office.
The South African Post Office was subsidising the government’s R350 Social Relief of Distress grants even while it couldn’t afford to pay medical aid contributions for its employees, despite deducting them from salaries.with SABC News, explained that the Post Office subsidises half of the costs associated with paying the grants.
At R15 for each grant processed, the Post Office paid around R228 million out of its own funds during the financial year to cover the costs., Mona explained that other factors beyond Sapo’s control have contributed to its ailing financial situation. She explained that the universal service obligation means Sapo has to ensure access to postal services is available all over the country.
Medipos informed scheme members that it would suspend their benefits should it not receive outstanding contributions from Sapo within 30 days, at the end of August. The communique from Sapo HR came after numerous meetings between Sapo, Medipos, and organised labour to try and resolve the issue.against Sapo for failing to pay the contributions.
News that the Post Office was deducting medical aid and pension contributions from salaries without paying service providers has resulted in an outcry, with some commentators calling for the mail carrier’s board and management to face criminal charges.
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