South African Post Office 2014/15 Annual Report: hearing

Meeting report

The Chairperson said he had sent the invitation letter to SAPO Chair of the Board, Mr Simosezwe Lushaba, on 19 February and he only responded last week. The SAPO Board Chairperson had said he was attending to a prior commitment of training chief executives and board members from different companies across the country. When it came to Parliament, priority must be given, especially considering the dire straits SAPO was in. His assumption was that if the Board Chairperson was not in the meeting, the Deputy Chairperson should stand in for him but unfortunately the Deputy was also not there and it was a pity that the political leadership was also absent.

Mr M Booi (ANC) said they were guided by the law on how the process would have to unfold. The meeting could not continue without Mr Lushaba being present.

Mr M Hlengwa (IFP) said the current SAPO Board Chairperson was the Administrator for a certain part of the year under review. SCOPA wanted him to appear before it because he had the benefit of both sides of the story in terms of what was going on. He was not treating the Standing Committee fairly. The CEO was new and was not the best person to stand in for the Board to provide the finer details of the responses. The legislated process would not materialise out of the current meeting.

Mr E Kekana (ANC) said the accounting officer needed to come and give account. When SCOPA invited people to a hearing, the relevant people should come and address the Committee as SCOPA would make recommendations to Parliament on how to correct some of the problems SAPO was experiencing. The current report from SAPO was not acceptable. If the Board Chairperson was not available, the Minister or a senior official of the agency was expected to address the Committee.

Mr C Ross (DA) said SCOPA had a responsibility towards the country. SAPO had obligations in terms of the Public Finance Management Act (PFMA). Since there was a loss of R1.5bn, it was important that the Standing Committee had the administrator appear before it, who was responsible for the 2014/15 period.

Ms N Khuno (ANC) said that currently the post offices were dead and the SAPO Board Members were not taking SCOPA seriously. On the other hand, SCOPA took the people who voted them in seriously because the people were the taxpayers whose money had been spent without accountability. Had the Board read what had been written in the media about SAPO? When SCOPA called for the Board, the Accounting Officer and the Minister should also be present. The Board Chairperson should pay for the flights and hotel accommodation of those who attended the proposed hearing of today.

Ms T Chiloane (ANC) said going through the reports from the Public Protector and the media, there was a concern about financial management. Whether the Country would continue to have post offices was debatable. She agreed that the meeting should be postponed.

The Chairperson said the SAPO Board had wasted money and the time of SCOPA by coming to the hearing without the relevant parties. It was unacceptable. SCOPA does not work like that and it did deserve more than it was getting from SAPO. The Standing Committee and SAPO were operating at completely different levels and the agency did not understand the damage it was doing by not having its board chairperson in Parliament to account. SCOPA did not want people with that kind of attitude appearing before it. The SAPO Board should not clown when it concerned its national responsibility. SCOPA needed people who were more serious. There was the R1.5 billion loss the Post Office suffered in the last financial year, the R908 million the Post Office owed to creditors and the R125m that was lost by the Post Office every month – these must be accounted for.

Ms Dawn Marole, SAPO board member, apologized on behalf of the Chairperson and Deputy Chairperson of the Board who could not attend the day’s meeting. She did not want the Committee to think that SAPO was not responsible and not taking the Committee seriously. SAPO had a Board that was hard working and it was unfair to leave with an impression that that was otherwise.

The Chairperson said whatever Ms Marole called commitment had not been demonstrated by SAPO’s action.

Mr Mark Barnes, SAPO Group CEO, said SAPO accepted the criticism about the absence of the Board. He was new and in the meeting to deal with the future.

The Chairperson replied that SCOPA “deals with the past and what killed the patient”.

Mr Booi said it was not about the opinion of individuals but about the law that guided SCOPA. The Standing Committee wanted an explanation on how billions of Rands were lost. It was not an individual’s money but money that belonged to the public. Parliament, in terms of its role, could issue a summons to bring the Board Chairperson before it.

Mr Hlengwa said the Standing Committee could not run the hearing in a vacuum. In terms of the findings of the Auditor General, a system had collapsed. The future plan should be seen in the context of what SCOPA wanted. Criminal charges should be pursued within the parameters of the law. The hearing should be conducted on the basis of what was expected of SCOPA.

Mr Barnes said he was the accounting officer and he was to account to Parliament.

The Chairperson said the CEO should read the Public Finance Management Act. The CEO accounted to the Board and the Board accounted to the Parliament.

The Chairperson said Ms Marole should convey this message to the Board Chairperson: When personal and national interests clashed, which came first? He should lead the delegation to the Parliament. The Chairperson apologised to the Office of the Auditor General and National Treasury for what it cost them to be present at the meeting. It had been a day and resources wasted.

The meeting was adjourned.