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The Citizen
6 days ago
- Business
- The Citizen
Post Office rescue plan is working, but more money is needed
Three creditors still need to be paid a combined amount of R509 million. Pensioners queue outside the Post Office in Westgate, awaiting their payouts. Picture: Devina Haripersad The Business Rescue of the South African Post Office (Sapo) is nearing completion, and the practitioners reported back positive results to parliament. However, a bumpy ride is still ahead. Business Rescue Practitioner (BRP), Anoosh Rooplal and Juanito Damons told the parliament's Communications and Digital Technologies committee that they are 75% done with the handover process to the shareholders of Sapo on Wednesday. However, they need to devise a plan to address outstanding creditors. ALSO READ: More millions to save jobs at SA Post Office Post office debt The committee was told that the Post Office was unable to receive R3.8 billion. Therefore, they are still in discussions with the department regarding an alternative plan to settle outstanding creditors. The creditors that still need to be paid are the South African Revenue Services (Sars), the Pension Fund, and Medipos. The three need to be paid a collective of R509 million. For the financial year 2024-25, the practitioners were able to pay creditors a total of R1 billion. Post office successes The committee was informed that, for the first time since 2012, Sapo had a positive balance sheet with a net asset value (NAV) of R1 billion. Sapo was placed under provisional liquidation in 2023, but thanks to the work of Rooplal and Damons, the entity has been discharged. 'The BRPs applied to have the provisional liquidation order discharged. The matter was heard on 22 November 2024, and the provisional liquidation order was discharged.' The entity is currently paying its liabilities in the ordinary course of business. ALSO READ: Ramaphosa signs Post Office Bill into law Retrenchments The practitioners stated that they issued 4 875 termination letters for employees who were affected by the retrenchment. 'All affected employees' notice period ended on 30 April 2024, and 4 342 employees were retrenched.' Sapo reported that year-on-year expenses of R2.7 billion were reduced by R2 billion, with staff costs being the main contributor to this decrease. As of 31 March 2025, Sapo had 5 592 employees. Additionally, the entity reduced the number of operating branches to 657. Sapo receives money The entity received R150 million from the Department of Communications and Digital Technologies in March 2025. When it comes to revenue, the entity reported year-on-year revenue of R1.7 billion, a decline of R700 million. They attributed this decline to a lack of investment in infrastructure. Achievements The BRP outlined the following goals to be achieved: Improving cash management processes Creditor Compromise Completion of S189 payments (final tranche of settlements) Achieved a target of 657 branches Employee reduction, R1.2 billion annual cost savings Data Centre Migration They are in the process of achieving the following goals: Investment in fleet management systems Strategic partnerships Appointing suitably qualified, skilled and competent management and directors Outstanding goals Statutory and payroll creditors Hardware infrastructure and software applications modernisation Investment in sales and business development team for bulk mail segment Strategic and equitable partnership implementation NOW READ: Parliament discusses SA Post Office's fate a month after 'day zero'
IOL News
13-05-2025
- Business
- IOL News
Doctor baffled by R2. 7 million electricity bill due to meter reading error
The eThekwini Municipality stated that the high electricity bill that a Reservoir Hills doctor received of R2.7 million was due to an incorrect meter reading that was submitted. Image: Supplied The eThekwini Municipality stated that the high electricity bill that a Reservoir Hills doctor received of R2.7 million in April 2025 was due to an incorrect meter reading that was submitted. Doctor Terence Govender said his average monthly bill was R8 500 and was left bemused by his latest bill. For March, Govender was billed R2.7 million in total. His bill for April totalled R91 000. This included water of R1 680, electricity of R55 000, cleansing and solid waste of R256, interest on arrears of R23 641, and VAT of R8 636. The total bill for March and April amounted to R2.8 million. eThekwini Municipality's Spokesperson, Gugu Sisilana, said they have noted the recent inquiry regarding an unusually high electricity bill reflected on a customer's account. The municipality stated that it wanted to provide clarity on the issue after investigating the matter. According to the municipality, the circumstances that led to this situation were: The cause of the high bill was an incorrect reading submitted to e-services by the customer. On March 25, 2025, the customer submitted a meter reading through the municipality's e-services platform. The reading submitted was 20364, which has fewer digits than the 6-digit reading, which ought to have been submitted. The municipality has also been advocating for customers to submit their readings on e-services as an alternative and appreciate the use of it. Subsequently, a routine meter reading was conducted on May 6, 2025, by municipal staff and captured the correct reading of 204020 units. However, this reading is currently pending final billing, and in the next billing, the adjustment of the R2m will be corrected. Sisilana said the municipality acknowledges the inconvenience this has caused and wishes to reassure both the customer and the public that this matter is receiving urgent attention. 'The customer will be contacted and will be educated on how to read their meter and submit on e-services. However, all necessary adjustments have been made already and will reflect actual consumption and correct the billing anomaly in the next bill of June 2025,' Sisilana said. She said that if residents have queries, the municipality's Revenue Management Unit (RMU) remains available for direct engagement. Krisendra Bisetty of Bisetty Attorneys said he is handling approximately 60 cases of high bills in eThekwini. 'I also have a client who owns a petrol station in Westville who has a R1.5m bill. I recently got a Sydenham woman's R1.5m water bill reversed in two days. She tried for two years without success,' Bisetty stated. In January 2025, a Tongaat homeowner, Arumoogum 'Reggie' Pillay, won his case at the Durban Regional Court after being billed approximately R322 900. Ish Prahladh, chairperson of the eThekwini Residents and Ratepayers Association (ERRA), said residents throughout the municipality were also experiencing similar challenges. Asad Gaffar, eThekwini Ratepayers Protest Movement (ERPM), said there is also no clear political will to change the management of the city and the department to address this serious crisis. 'The city has put its citizens into a predicament, and quite frankly, they simply just don't care. It is about time that the residents and ratepayers of eThekwini unite and stand united in a defiance campaign against this city,' Gaffar said. [email protected]
IOL News
10-05-2025
- Health
- IOL News
Doctor bewildered by eThekwini Municipality's R2. 8 million utility bill
A Reservoir Hills doctor received a R2.8 million utility bill from the eThekwini Municipality for April 2025. Dr Terence Govender said his average monthly bill was R8 500. Image: Supplied A Reservoir Hills doctor has been left perplexed after receiving a R2.8 million utility bill from the eThekwini Municipality for April 2025. Doctor Terence Govender said his average monthly bill was R8 500 and was left bemused by his latest bill. For March, Govender was billed R2.7 million in total, which consists of rates R1 820, Water and Sanitation R1 276, and Cleansing and Solid Waste (CSW) R256. He was billed R2.3 million for electricity and R358 311 VAT. Govender's bill for April totalled R91 000. This included water R1 680, Electricity R55 000, CSW R256, interest on arrears R23 641, VAT R8 636. Govender's total bill for March and April amounted to R2.8 million. Govender said that after he had complained, an official came to his home and business to take down the readings. He said all the official said was he would look into it. "I have never been in arrears; I normally pay extra in some months to stay ahead. Some time ago, the bill came to R20 000, and I just paid it to avoid the long queues and nonsense you hear at call centres in the city. This time around, I will take them to task. On the bill, they also use threats of disconnection if you do not pay," Govender said. He blamed the municipality for what he called incompetent employees. He said that at first, he was seething with anger and stressed out, but then as the days passed, he began to laugh about it. Govender said he has generators and inverters at his home, but still pays a high bill. He said there were always prolonged electricity and water supply issues, but residents' bills remained the same monthly. Last week, he spent R3 500 on diesel to operate the generators during a power outage that lasted more than two days in Reservoir Hills. "I am not sure where they thumb sucked these figures from. What happens to those unsuspecting pensioners and other residents who are falling into this situation and making plans to pay off amounts like this? They force people to pay first and claim back later. Now they have pushed their luck and gone beyond. We will take them to court," Govender said. Reservoir Hills Ratepayers Association (RHRA) Director Yogesh Naidoo said, despite alerting the municipality to the problem in April, the RHRA did not receive any feedback. The RHRA raised the following concerns with the municipality: The electricity charge alone is R55 639.37 for a residential property, with no commercial operations or unusual usage patterns. The total arrears and monthly charges are unsubstantiated and continue to escalate with no proper reconciliation or supporting breakdown. Govender has previously attempted to resolve this issue with the Revenue Department without success or response. Naidoo said that the RHRA demand a comprehensive audit and itemised reconciliation of this account from January 2023 to April 2025. The RHRA called for: An immediate halt to interest and penalty accruals pending resolution of this dispute. A formal acknowledgment of this complaint and assignment of a reference number. Prevention of any termination or suspension of services to properties under Govender's property portfolio. Naidoo warned that if there was continued inaction, the RHRA would escalate the matter to the office of the Public Protector, the South African Human Rights Commission, National Energy Regulator of South Africa, and the Auditor-General of South Africa because "this is a clear case of administrative failure causing financial prejudice to a compliant ratepayer". According to the municipality's finance committee revenue management report for April 2025, household debt, which mainly includes individual/residential customer accounts, remains high at R25 billion, contributing to 75% of the total debtors. For January 2025, the city disconnected 704 electricity and 3 767 customers for water arrears, investigations, and tampering. The municipality was also concerned about the Suprema and Revenue Management System (RMS), which had not yet materialised, thus resulting in no proper data in place for customers who are part of the 80/20 electricity programme. The eThekwini finance committee also requested a report on the migration of the RMS and Suprema system at the next meeting. In January 2025, the city billed 926 282 accounts. In the report, some of the challenges the accounts management section faces were non-completion of monthly billing due to network and technical glitches. The municipal meter management services department is a combined meter reading for water and electricity, which was integrated into the revenue management unit in October 2024. The meter reading contract for electricity expired last year. The report stated that the procurement for external meter readers is under way. Attempts to get a comment from the municipality were unsuccessful at the time of publication. [email protected]
IOL News
08-05-2025
- Business
- IOL News
Driving towards a cashless future: South Africa's card payments boom
The South African card payments market is on a solid growth trajectory, driven by a growing shift toward digital payments, bolstered by enhanced financial inclusion, expanding payment infrastructure, and rising consumer preference for speed, safety, and convenience in everyday transactions. Image: Pixabay The South African card payments market is on a remarkable upward trajectory, with projections indicating it will reach R2.9 trillion by 2025. This growth is fuelled by a growing preference for digital payments, increased financial inclusion, and a rapidly evolving payment infrastructure that appeals to consumers seeking speed, safety, and convenience in their everyday transactions, according to a recent report from GlobalData, a leading data and analytics firm. GlobalData's latest Payment Cards Analytics highlights that the total value of card payments in South Africa registered an impressive growth rate of 10.3% in 2024, reaching R2.7 trillion. This surge is primarily driven by higher consumer spending and an expanding acceptance of card payments among merchants, underscoring a shift in the financial habits of South Africans. Debit card payments held a significant share of the total card payments market in South Africa Image: GlobalData Banking and Payments Intelligence Centre Yasaswini Pujitha, Banking and Payments Analyst at GlobalData, explains: 'The South African payment landscape is evolving rapidly, supported by a growing banking population, increasing adoption of contactless payments, and the development of payment infrastructure.' Pujitha further discloses that the average frequency of payments per card stands at 118.1 times in 2024. This figure highlights South Africa's robust usage rate compared to countries like Nigeria (51), Egypt (24.2), Morocco (10.9), and Kenya (5.3). A significant driver of the payments market is the predominance of debit card transactions, which accounted for 74% of the total card payments market by value in 2024. This trend is largely due to an expanding banking demographic and the increasing use of debit cards for low-value, day-to-day payments. The competitive landscape is further bolstered by the rise of digital banks and fintech companies such as Discovery Bank, TymeBank, and Bank Zero, all of which are innovating and refreshing traditional banking services. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Credit and charge cards hold the remaining 26% share of the card payment market in 2024, which is fueled by attractive benefits offered by banks, including cashback, rewards points, and discounts. This segment particularly appeals to the rising middle class and a younger, working population eager to leverage these advantages. The growing popularity of contactless payments is also a contributing factor to the robust card payment growth in South Africa. With banks and payment scheme providers actively promoting this technology, both consumers and merchants are embracing contactless solutions. A survey conducted by GlobalData in 2024 revealed that 68.4% of respondents in South Africa reported having access to a contactless card, and regularly utilised it for payments. Notably, the expansion of contactless payment options in transport services is particularly noteworthy. The South African National Roads Agency Limited (SANRAL) is implementing a nationwide rollout of contactless payment systems at toll plazas. Effective from 1 December 2024, magstripe card payments will be phased out at certain toll gates, leading to a complete transition to contactless payments by 31 May 2025. This initiative is being supported by financial institutions and payment providers like Visa and Mastercard. Pujitha concludes optimistically, stating: 'South Africa's payment card landscape is set for steady growth over the next five years, marked by increased adoption of payment cards amid a broader digital transformation. The proliferation of digital banks, a growing preference for contactless technology, and improving payment infrastructures will be the key drivers for this growth. The market is expected to grow at a compound annual growth rate (CAGR) of 6.7% between 2025 and 2029, reaching R3.8 trillion by 2029.' Cape Argus
IOL News
05-05-2025
- Business
- IOL News
Cashless future: South Africans drive card payment boom towards R2. 9 trillion milestone
The South African card payments market is on a solid growth trajectory, driven by a growing shift toward digital payments, bolstered by enhanced financial inclusion, expanding payment infrastructure, and rising consumer preference for speed, safety, and convenience in everyday transactions. Image: Pixabay The South African card payments market is on a remarkable upward trajectory, with projections indicating it will reach R2.9 trillion by 2025. This growth is fuelled by a growing preference for digital payments, increased financial inclusion, and a rapidly evolving payment infrastructure that appeals to consumers seeking speed, safety, and convenience in their everyday transactions, according to a recent report from GlobalData, a leading data and analytics firm. GlobalData's latest Payment Cards Analytics highlights that the total value of card payments in South Africa registered an impressive growth rate of 10.3% in 2024, reaching R2.7 trillion. This surge is primarily driven by higher consumer spending and an expanding acceptance of card payments among merchants, underscoring a shift in the financial habits of South Africans. Debit card payments held a significant share of the total card payments market in South Africa Image: GlobalData Banking and Payments Intelligence Centre Yasaswini Pujitha, Banking and Payments Analyst at GlobalData, explains: 'The South African payment landscape is evolving rapidly, supported by a growing banking population, increasing adoption of contactless payments, and the development of payment infrastructure.' Pujitha further discloses that the average frequency of payments per card stands at 118.1 times in 2024. This figure highlights South Africa's robust usage rate compared to countries like Nigeria (51), Egypt (24.2), Morocco (10.9), and Kenya (5.3). A significant driver of the payments market is the predominance of debit card transactions, which accounted for 74% of the total card payments market by value in 2024. This trend is largely due to an expanding banking demographic and the increasing use of debit cards for low-value, day-to-day payments. The competitive landscape is further bolstered by the rise of digital banks and fintech companies such as Discovery Bank, TymeBank, and Bank Zero, all of which are innovating and refreshing traditional banking services. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Credit and charge cards hold the remaining 26% share of the card payment market in 2024, which is fueled by attractive benefits offered by banks, including cashback, rewards points, and discounts. This segment particularly appeals to the rising middle class and a younger, working population eager to leverage these advantages. The growing popularity of contactless payments is also a contributing factor to the robust card payment growth in South Africa. With banks and payment scheme providers actively promoting this technology, both consumers and merchants are embracing contactless solutions. A survey conducted by GlobalData in 2024 revealed that 68.4% of respondents in South Africa reported having access to a contactless card, and regularly utilised it for payments. Notably, the expansion of contactless payment options in transport services is particularly noteworthy. The South African National Roads Agency Limited (SANRAL) is implementing a nationwide rollout of contactless payment systems at toll plazas. Effective from 1 December 2024, magstripe card payments will be phased out at certain toll gates, leading to a complete transition to contactless payments by 31 May 2025. This initiative is being supported by financial institutions and payment providers like Visa and Mastercard. Pujitha concludes optimistically, stating: 'South Africa's payment card landscape is set for steady growth over the next five years, marked by increased adoption of payment cards amid a broader digital transformation. The proliferation of digital banks, a growing preference for contactless technology, and improving payment infrastructures will be the key drivers for this growth. The market is expected to grow at a compound annual growth rate (CAGR) of 6.7% between 2025 and 2029, reaching R3.8 trillion by 2029.' IOL
