NZ Post management deal in S Africa ends

NZ Post management deal in S Africa ends

05.10.2001
By SIMON HENDERY
New Zealand Post subsidiary Transend has finally ended its strife-plagued South African postal management contract.

Transend Worldwide, NZ Post’s international consultancy arm, which has contracts in about 40 countries, said yesterday that it had “reached a commercial settlement” with the South African Post Office (Sapo) over cancelling the contract, believed to be worth $54 million.

But despite severing the three-year contract about a year early, the company remained upbeat about its South African foray, saying it would continue to work with Sapo.

In a joint NZ Post/Sapo statement, Sapo chief executive Maanda Manyatshe said Transend “continues to provide ancillary work to the Post Office”.

Transend spokeswoman Suzanne Stephenson said the company’s staff still in South Africa – about six people – would continue with Sapo projects or move to projects in other parts of Africa.

When the South African cabinet announced in late May it was moving to terminate the contract, Transend had about 20 staff in the country, but Suzanne Stephenson said some had been due to complete their work by July.

Transend has maintained over the past few months that it never received official notification from the cabinet of its desire to end the contract.

“Despite what seems like a rather extraordinarily long length of time, we have been speaking with [Sapo] and discussing which way forward they wanted to go. It’s very much their desire to end the contract and move on with new projects. We were quite comfortable with that,” said Suzanne Stephenson.

“We are realists and you have to acknowledge your clients’ goals change. If you are truly client-driven, as we are, you have to work with them.”

In May, Sapo managers claimed that Transend had breached its contract by failing to ensure the postal service broke even by March. Transend said the criticism was politically motivated.