Sapo CEO Nomkhita Mona warned Telkom’s enterprise service division BCX that cutting them off could jeopardise the payment of social grants to around 10 million South Africans.
Telkom this week threatened to cut off communications services to the South African Post Office over an outstanding debt of over R225 million,Sapo CEO Nomkhita Mona warned Telkom’s enterprise service division BCX that such a development could jeopardise the payment of social grants to around 10 million South Africans.
While the Post Office’s executives want the contract to be extended, the Sapo board wants it to be terminated and an open and competitive tender bidding process to be launched for a new provider. Bogoshi originally gave Sapo until 30 September 2022 to pay off the debt, but it appears that Telkom only threatened action this week.In addition to the R225 million, Sapo has to pay R30 million every month to Telkom until the end of the contract.Mona said it had not been included in the payment agreements signed by the Post Office and questioned how Telkom quantified the amount.
In its latest annual results for the 2020/2021 financial year, it reported a loss of R2.3 billion — R469 million more than in the previous year. According to the Financial Services Laws General Amendment Act 45 of 2013, which took effect in 2014, deducting employee contributions without paying them to the relevant service provider is a criminal offence.
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