Cape Town - The South African Post Office (Sapo) would not confirm if any bailout funding it received from the National Treasury would be used to settle historical debt owed to medical scheme, Medipos – affecting over 12 000 principal members.
The state-owned entity (SOE) recently confirmed in response to a parliamentary question that it owes the medical scheme R561.7 million for outstanding medical aid contributions.
Currently 12 715 medical aid members – 1 740 of them pensioners – are affected by the SOE’s dire financial position.
The question posed to Communications and Digital Technologies Minister Mondli Gungubele revealed that “partial payment of medical aid contributions commenced on April, 2020, and that R561 667.106 is currently owed to Medipos”.
“This amount is historical debt.
There is no current amount outstanding; Sapo is up to date with Medipos payments. Medical aid benefits for Medipos were suspended from October 1, 2022 to October 13, 2022, and then reinstated on October 14, 2022,” Gungubele said.
The other medical aid schemes Bonitas, Discovery and Sizwe were suspended in November, 2022 due to non-payment of October, 2022’s contributions.
The suspension was lifted after payment was made in January, 2023 for the outstanding three months of October to December, 2022, the minister said.
Medical aid benefits were suspended once more in February, 2023 due to non-payment of January and February, 2023 contributions.
These contributions were paid on March 8, 2023. The number of employees affected differs on a month-to-month basis depending on membership numbers, the ministry said.
Sapo spokesperson, Suzie Khumalo, said they were not at liberty to comment as the matter was still before the court.
Sapo was placed in provisional liquidation following a creditor approaching the Gauteng High Court, Pretoria, last month to recover back rent.
“We are not in a position to respond to questions related to debts at this stage,” said Khumalo.
The ministry further said: “The funding and implementation of the Post Office of Tomorrow strategy will improve its operational and financial performance.”
Earlier this year, National Treasury announced a bailout of R2.4 billion to be made available to the debt-ridden SOE.
“(Sapo’s) financial position has been dire as expenses have continued to exceed revenue resulting in unfunded losses. Sapo has continued to manage its expenses prudently, resulting in the loss position not worsening.
Staff-related costs are the primary driver of 69% of total expenses with revenue unable to cover these costs.
“The monthly salaries have been prioritised. However, cash flow has been insufficient to pay medical and other statutory expenses in full,” the ministry said.
The DA’s spokesperson on communications and digital technologies, Natasha Mazzone, said after following up on this matter six months ago, “barely a dent has been made in paying the outstanding medical aid contributions to Medipos, which Sapo owes to its employees”.
Cape Times