Latest news with #R381
IOL News
09-07-2025
- Business
- IOL News
Government officials face investigations for failing to pay suppliers on time
The National Treasury wants action to be taken against government officials who fail to ensure suppliers are paid within the required 30 days. Image: File Heads of national and provincial government departments could face investigations and disciplinary action for failing to pay suppliers billions of rand within the required 30 days. The National Treasury has revealed that by the end of the 2024/25 financial year on March 31, provincial departments reported 140,364 invoices older than 30 days and not paid were valued at R17.8 billion, while nationally the figure stood at R381 million for 2,437 invoices. In addition, about 321,000 invoices valued at nearly R37.2bn were paid later than 30 days by provincial departments, and national departments also missed the 30-day payment deadlines for 143,245 invoices with a value of R6.4bn. The value of invoices older than 30 days that provincial departments failed to pay increased to R17.8bn from R10.6bn in 2023/24, while national departments also regressed to R381m in 2024/25 from R328m the previous financial year. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading Provinces also paid R37.2bn after 30 days in 2024/25, which is up from R30.5bn in 2023/24. National government departments paid R6.4bn in invoices after 30 days in 2024/25 compared to R4.6bn in 2023/24. Treasury has noted that among the repeated common reasons provided by national and provincial departments for late and non-payment of invoices and which mostly align with its assessments are excessive administrative procedures, multiple approval layers and slow compliance processes that can delay payments and poor forecasting or cash management leading to shortages of funds available for timely payments. Other common reasons are missing or incorrect documentation from suppliers, including invoices or delivery receipts, which delays processing, and unethical practices resulting in deliberate delays or misappropriation of funds and manual systems commonly used to track invoices received from suppliers. The National Treasury wants accounting officers (heads of departments and directors-general) and chief financial officers to address the root causes of the late and/or non-payment of invoices to improve compliance with the requirements of Treasury regulations. 'Wilful or negligent failure by accounting officers who consistently breach the Public Finance Management Act (PFMA) and Treasury regulations by paying suppliers late constitutes financial misconduct in terms of Section 83 of the PFMA. 'This must be investigated and disciplinary action must be taken against officials who fail to comply with the requirements to pay invoices within 30 days and who undermine the systems of internal control,' Treasury stated. In terms of the PFMA, financial misconduct is a ground for dismissal or suspension of, or other sanction against, any government official. According to the National Treasury, executive authorities (ministers, premiers, and MECs) play an important role in holding accounting officers accountable for the continued improvement in the culture and payment internal control environment of their respective departments. It has also urged that interventions be prioritised at the provincial level, as provinces continue to be the highest contributors to the statistics of late payments and unpaid invoices. The continued impact of the late or non-payment of invoices also contributes to the sustainability of small and medium enterprises, adding to unemployment, job creation, and inequality issues. Treasury said its efforts and those of the Public Service Commission, national departments of Small Business Development, Planning, Monitoring and Evaluation, and the Presidency can only be impactful if there is a willingness of leadership at the departmental level to make a difference.
IOL News
19-05-2025
- Business
- IOL News
UIF's R381 million deal with SA Post Office aims to preserve jobs as unions call for long-term solutions
The South African Post Office (SAPO) has entered into a partnership with the Unemployment Insurance Fund. Image: Independent Newspapers Archives The Unemployment Insurance Fund (UIF) has entered into a multi-million rand deal with the South African Post Office (SAPO) that could help stave off the immediate loss of thousands of jobs at the state-owned entity. Through the Temporary Employer-Employee Relief Scheme (TERS), the UIF will inject over R381 million into SAPO over a six-month period. While the move has been welcomed by some labour unions, an economist is doubtful that it will have any significant long-term impact on improving the fortunes of the Post Office. Employment and Labour Minister Nomakhosazana Meth said the implementation of the signed agreement between SAPO and the UIF was aimed at preserving nearly 6,000 jobs and was a 'bold and necessary step to protect workers and restore confidence in public institutions.' Video Player is loading. 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Next Stay Close ✕ The UIF and SAPO have formally entered into a Memorandum of Agreement (MOA), marking the establishment of a strategic partnership between the two entities. 'The TERS programme is not just a financial mechanism; it is a strategic tool to stabilise employment, support economic recovery, and ensure that no worker is left behind,' Meth said. The minister explained that the funding will be disbursed in monthly tranches through a dedicated TERS bank account, with strict governance, auditing, and compliance measures in place. SAPO is required to submit regular reports, maintain transparent accounting records, and implement a detailed turnaround strategy. Earlier this month, the chairperson of the Portfolio Committee on Communications and Digital Technologies, Khusela Diko, described the approval of six months of income support for the Post Office as 'a much-needed lifeline that the state is both morally and duty-bound to extend.' According to reports, this latest round of income support brings the total amount of government bailouts for SAPO to approximately R9.8 billion since 2014. Zwelinzima Vavi of the South African Federation of Trade Unions (Saftu) said that while the trade union federation supported the funding move, it was a short-term measure. "We need a permanent solution.' He stated that they have written to the president about the matter and how it could be better handled but have not heard back. In the letter, Saftu argued that SAPO has improved and should be provided with more substantial support from the government. 'Since entering business rescue, SAPO has registered progress. Between June 2023 and June 2024, SAPO has turned its net asset value from a negative R7.9 billion to R840 million, bringing it into solvency. Furthermore, SAPO has since seen operations improve — reducing backlogs in its mail centre and completing data centre migration. "However, despite these recorded partial successes, the Treasury appears to have turned against the government's commitment to save this vital service to the poor with an additional R3.8 billion to complete the business rescue process.' Vavi said Saftu believed that SAPO has a Universal Service Obligation mandate; therefore, it must be saved and retained in public hands. If its liquidation were a reality, the consequences would be devastating for the working class, particularly those in rural areas, he concluded. The Congress of South African Trade Unions (Cosatu) also welcomed the agreement. It explained that the funds would cover 75% of the wages of SAPO's 6,027 employees over the next six months while the entity undertakes its turnaround plans. 'While this relief comes after much anguish and extreme hardship imposed on SAPO's staff by its management, it will provide badly needed comfort. It is critical that SAPO be given the full support it needs to effect its turnaround and ensure that it is firmly set on a path to recovery and sustainability,' said the trade union federation. Cosatu added that the remaining balance of the previously committed R3.8 billion injection from the National Treasury also must be provided to SAPO to enable it to settle debts and outstanding payments. 'As provided for in the SAPO Amendment Act, the Post Office's turnaround plans need to include, with the support of key departments, the establishment of a one-stop shop where citizens can apply for a variety of government services, e.g., identity documents, social grants, educational or SMME financing, etc. Equally critical is SAPO's entry into the lucrative courier sector, as relying upon its historic business model is clearly not sustainable given the rapid advent of the fourth industrial revolution. 'The current challenges hindering the turnaround of the Postbank also need to be tackled, as its successful rollout as a state bank targeting historically redlined communities will be a further boost to SAPO given their symbiotic relationship and shared infrastructure. The government must lead from the front and utilise SAPO and the Postbank as their service providers for postal and courier services, rolling out civic, social grant, and other services to the public, as well as banking needs. This would provide SAPO and Postbank with the badly needed liquidity they require to survive and thrive,' it concluded. However, economist Dawie Roodt is not convinced of SAPO's continued survival. 'The UIF is allowed to invest its surplus funds, but I doubt they are allowed to take this kind of risk. This money will not change anything; it will go to salaries and will help to kick the can down the road for a few months. We should be honest that the Post Office is dead; it is so far behind on its debt, it's bankrupt. If there is something still left, they should sell it,' said Roodt. THE MERCURY
eNCA
19-05-2025
- Business
- eNCA
Post Office jobs deal now active
JOHANNESBURG - A deal between the South African Post Office and the Unemployment Insurance Fund has been announced formerly by the Minister of Employment and Labour. It's aimed at saving nearly 6,000 jobs and revitalising one of the country's most critical state owned entities. Through the Temporary Employer-Employee Relief Scheme the UIF will inject over R381 million into the post office over six months. This will provide relief to workers while the Post Office attempts to turn around.
The South African
19-05-2025
- Business
- The South African
SA Post Office thrown R381 million lifeline
In a move to preserve jobs and restore public confidence, Minister of Employment and Labour, Nomakhosazana Meth, has confirmed the implementation of a R381 million financial lifeline for the embattled South African Post Office (SAPO). The funding aims to stabilise the organisation as it continues its business rescue journey. The funding comes through the Temporary Employer-Employee Relief Scheme (TERS), administered by the Unemployment Insurance Fund (UIF). A Memorandum of Agreement (MOA) has been signed between SAPO and UIF to disburse the funds over six months, offering temporary relief to 6 000 workers while a long-term turnaround strategy is executed. 'This is a bold and necessary step to protect workers and restore confidence in our public institutions,' said Minister Meth. 'TERS is not just a financial mechanism – it is a strategic tool to stabilise employment, support economic recovery, and ensure that no worker is left behind.' The funds will be disbursed in monthly tranches via a dedicated TERS bank account, with strict auditing, governance, and compliance conditions in place. The SA Post Office, founded in 1792, has endured years of financial decline, culminating in a R2.17 billion operating loss in 2024. The company was placed under provisional liquidation in February 2023, but later rescued by court-approved business rescue practitioners (BRPs). Since then, SAPO has implemented aggressive restructuring measures, including: Closure of 366 branches , leaving just over 650 operational , leaving just over 650 operational Retrenchment of more than 4 300 employees in April and May 2024 in April and May 2024 Ongoing efforts to reduce losses and revive profitability by 2028 In addition to the TERS lifeline, the National Treasury granted a R2.4 billion bailout in the 2023/24 financial year to fund retrenchments, creditor settlements, and basic operations. However, the BRPs warned Parliament earlier this year that SAPO still requires an additional R3.8 billion to successfully complete its turnaround and restructuring plan. The TERS funding was approved following a rigorous review by the TERS Single Adjudication Committee, which includes stakeholders from the CCMA, Department of Higher Education, and Department of Small Business Development. SAPO is now required to: Submit regular financial and progress reports Uphold transparency and proper accounting Demonstrate tangible progress on its revitalisation plan Despite its financial woes, SAPO's corporate plan through to 2030 indicates optimism. The organisation projects progressive reductions in losses, aiming to return to profitability by 2028. This latest intervention underscores the government's commitment to job preservation and SOE reform, even as tough fiscal conditions demand accountability and restructuring. When last did you step into a Post Office branch? Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
IOL News
19-05-2025
- Business
- IOL News
SAPO and UIF agreement to protect nearly 6 000 jobs
The implementation of the signed agreement between the South African Post Office (SAPO) and Unemployment Insurance Fund (UIF), aimed at preserving nearly 6000 jobs, is a bold and necessary step to protect workers and restore confidence in public institutions, says Employment and Labour Minister Nomakhosazana Meth. Through the Temporary Employer-Employee Relief Scheme (TERS), the UIF will inject over R381 million into SAPO over a six-month period. This intervention is designed to provide immediate financial relief to 5956 employees while enabling SAPO to implement a sustainable turnaround strategy.
