SAPO execs spent R600 000 on corporate club fees when entity was suffering

Dear Cape Town

The Democratic Alliance (DA) can reveal executive members of the South African Post Office (SAPO) wined and dined on the finest food and drink as part of a corporate membership to the tune of more than half a million rand during a time when the entity was retrenching staff and shutting post offices.

The DA will continue to probe this shocking expenditure after it was revealed in reply to a Parliamentary question by Cameron MacKenzie MP. It emerged the SAPO spent R600 000 over 8 years on corporate membership at the exclusive Irene Country Club.

Adding insult to injury, during the time this corporate membership was paid for, there were numerous instances of post offices being shut for non-payment of rent, fleet vehicles unable to operate for lack of fuel, and a catalogue of unpaid suppliers ranging from printer ink to post office maintenance.

During the eight years in which SAPO executives wined and dined, played golf on the Top 50 course as well as indulged in games of cricket, tennis, bowls, and squash, the SAPO faced warnings from the Auditor General (AG) year after year regarding its ability to operate as a going concern.

In this time, several Strategic Turnaround Plans (STPs) were tabled before Parliament aimed at restoring the SAPO to financial sustainability. All of these contained a commitment to reduce staff – to retrench or retire loyal employees while senior executives, safe in their positions, enjoyed the finest country club entertainment the country can offer.

In exchange for taxpayer-funded bailouts totaling almost R8 billion over the last eight years, all of these STPs also included a commitment to cut unnecessary expenditure while increasing revenue. Clearly, this reduction in expenditure did not extend to corporate hospitality benefits.

It is unacceptable that, at a time when the SAPO was being kept afloat on billion Rand bailouts, that money could still be found to pay these country club fees on time, every time. The state and its entities cannot be a place of perks for selected individuals who exploit these for their own selfish ends.

The DA will be asking further questions of the SAPO to establish exactly who benefitted from the Irene Country Club membership; whether any additional SAPO funds were spent on food and beverages, court fees, merchandising, etc.; as well as whether the SAPO has any similar arrangements elsewhere in the country.

Regards

Cameron MacKenzie MP
DA Shadow Deputy Minister of Communications, Telecommunications & Postal Services