The Congress of South African Trade Unions has expressed doubts on whether the money spent on rescuing theThe state-owned enterprise’s business rescue process has so far cost taxpayers over R 175 million for 13 months of work.
In July last year, the High Court in Pretoria granted government’s application to place the Post Office under business rescue, halting liquidation proceedings. Cosatu’s Parliamentary co-ordinator, Mathew Parks says, “All we have seen is the business rescue practitioner has retrenched over four and a half thousand post office workers, who have already been through a very difficult period. We’ve seen them closing about 200 branches, about 10% of the post office.”
“We see many post office branches simply abandoned to vandalism. So, we don’t know how this thing is really going to assist the post office, besides weakening it further, but also now, tragically, we’re finding post office workers being caught in the middle.” Parks adds, “There was a court agreement, a business rescue plan which said the government is going to give about R 3.8 billion, to help reposition the post office to pay its debts, to pay its salaries, moneys owed to workers. The first tranche of that money is meant to come through, has not come through.”
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