Post Office May Abort New Zealand Contract

Post Office May Abort New Zealand Contract
From AFRICA NEWS SERVICE, May 8th, 2001

Johannesburg, May 08, 2001 (Business Day/All Africa Global Media via COMTEX)–
The board of the South Africa Post Office has called on government to cancel
its contract with its New Zealand management partner up to 18 months early in
the wake of huge losses at the organisation. The South Africa Post Office is estimated to have lost R750m in the year ended
March 2001, from an operating loss of R482m in the year to March last year. As many as 27 skilled black managers have left the organisation and delivery
targets have not been met. Transend Worldwide, formerly called New Zealand Post International, was
appointed in 1999 to help transform the SA Post Office, drive postal services
to underserviced areas and move it from a loss to a break-even position. Other key stakeholders, including the Communications Workers’ Union and the
Post & Telecommunications Association, have also called on government to
terminate the contract. Top officials believe the contract, one of the biggest of its kind and
spanning three years at an estimated cost of R185m, could be halted or
overhauled. Transend Worldwide country manager Doug Maclean said the
organisation had been in talks with the SA Post Office about reviewing
priorities. “We are still committed to the SA Post Office and to the change
process,” he said. Communications ministry spokesman Robert Nkuna said Communications Minister
Ivy Matsepe-Casaburri was “giving the (board’s) request due consideration and
will soon take a decision on the recommendation”. Nkuna said that addressing the situation at the SA Post Office was a top
priority for the minister as government wanted to speed up the delivery of
postal services to underserviced areas. Matsepe-Casaburri has launched a full audit into the problems facing the SA
Post Office. The audit is being undertaken by international investigative and
forensic firm Kroll & Associates. If government decides to cancel the
contract, talks would follow on the extent of nonperformance and other issues. SA Post Office MD Maanda Manyatshe said yesterday that a number of problems
had arisen with the contract, which was very expensive at a time when the
management partner was supposed to help the organisation cut costs. He said the deal with Transend Worldwide aimed to ensure the SA Post Office
broke even, but it had recorded a big loss in the year ended March. Insufficient attention had been paid to black economic empowerment and
affirmative action. The SA Post Office was also behind on its target of
delivering about 4-million postal addresses around the country. Communications Workers’ Union spokesman Sizwe Matshikiza said the union had
called for the contract to be ended due to “nonperformance” issues such as
lack of action on skills transfer. by Robyn Chalmers Copyright Business Day. Distributed by All Africa Global Media(AllAfrica.com)
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KEYWORD: South AfricaAFRICA NEWS SERVICE, 08th May 2001