Business Report writes that the SA Post Office (Sapo) on Monday defended its vision of a turnaround of the troubled state-owned entity (SOE), even as the Communications Workers Union (CWU) announced plans to take the cash-strapped company to court in March due to non-payment of medical aid and pension fund contributions.

Clyde Mervin said the union was consulting its lawyers to file the case. “I think it is reckless trading that the Post Office is not paying contributions towards employees’ benefits. Employees’ medical aid was suspended because of non-payment. We are definitely going to court,” he stated. Sapo, which has been under administration since November, with questions around its status as a going concern, has been struggling to pay contributions towards medical aid, the Unemployment Insurance Fund (UIF) and the pension savings of its workers due to its serious liquidity challenges. But Johan Kruger, a Sapo spokesperson, said on Monday that the Post Office had not received any formal notice regarding such legal action. He indicated that over the past 10 months, Sapo had been doing its best to pay the outstanding staff benefits − having negotiated with the relevant institutions. “Sapo is in the process of implementing its comprehensive ‘Post Office of Tomorrow Strategy’. This plan is aimed at the turnaround of the business towards sustainability. Some aspects are already being implemented and there are signs of improvement. In some areas, Sapo has signed agreements with various e-commerce companies,” he advised.

• Read the full original of the report in the above regard by Dieketseng Maleke at Business Report

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