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R6bn Post Office shambles: Gauteng to lease private property for licence disc renewals

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R6bn Post Office shambles: Gauteng to lease private property for licence disc renewals

Post Office
Photo by Creamer Media

1st November 2023

By: News24Wire

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The R6-billion SA Post Office loss resulted in the closure of 123 outlets in Gauteng, with the provincial government resorting to leasing offices in private buildings for motorists to renew their vehicle licence discs. 

Speaking in the Gauteng Legislature on Tuesday, Roads and Transport MEC Kedibone Diale-Tlabela said the province would launch its first satellite centre at the Denlyn Mall in Mamelodi East, Tshwane, on 10 November. 

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Diale-Tlabela said the government had sent its offer to lease space at Denlyn Mall after budget allocation submissions were done and approved. 

The MEC spoke during the legislature's questions to the executive and Premier Panyaza Lesufi.

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Lesufi, though, was absent as he was among the crowd of people that descended on OR Tambo International Airport to welcome South Africa's national rugby team, the Springboks, back from their triumphant Rugby World Cup campaign in France.

Speaker Ntombi Mekgwe announced at the start of the sitting that Lesufi had appointed Human Settlements, Cooperative Governance and Traditional Affairs MEC Jacob Mamabolo as acting premier on Saturday – the day the Springboks won the fourth world rugby title – with Lesufi set to return to work on Wednesday. 

Meanwhile, Diale-Tlabela said Gauteng's leasing of private property for licence disc renewal would be rolled out by the provincial government to other townships as well, but did not give the amounts budgeted for the programme. 

The leasing, the MEC added, was necessitated by the closure of 123 of Gauteng's 259 post offices following the implosion of the state-owned entity. Its CEO, Nomkhita Mona, told Parliament about three weeks ago that the parastatal had lost R6 billion over the last three years. Only 193 of its 1 108 branches were profitable. 

Diale-Tlabela said, after Mamelodi, another provincial government-leased renewal centre would be in Protea Glen, Soweto.

"The other one will be in Randfontein in Umphakathi Mall, and the lease and relevant documentation are also ready for review and approval, including the budgets thereof. And the last one will be in Soweto – Maponya Mall. The site design and lease agreement are in [the] negotiation process as of [Tuesday]," Diale-Tlabela said.

She added that online renewal services were launched in the 2023/24 financial year, which began in April, and about 10% of the province's more than 4.6 million registered vehicles – amounting to more than 460 000 cars – renewed their licence discs from April to August. 

While questions meant for Lesufi were fielded by Mamabolo, the Gauteng premier was a prominent figure at the Springbok welcome-back party, taking selfies with national captain Siya Kolisi

Lesufi's spokesperson, Sizwe Pamla, told News24 he could not answer questions as to why the premier prioritised the Springboks' homecoming, and delegated a legislature sitting to Mamabolo.

"I will only be able to access him [Lesufi] when he gets back [on Wednesday]," Pamla said. 

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