government plan Reviewing the Post Office's monopoly on the delivery of goods weighing less than 1 kg, even though this regulation is widely ignored in the logistics and e-commerce industries and is generally considered unenforceable. be.
Communications Minister Mondli Gungubele signed a notification (PDF) published in the Official Gazette on Monday approving a review of the “period of exclusivity” for services reserved for post offices. Although the government has said nothing officially about its intentions, the review could signal that the Post Office could lose this monopoly.
“The Minister of Communications and Digital Technology intends to consider the period during which reserved postal services may not be provided by persons other than the South African Post Office in terms of section 16(8) of the Postal Services Act and recommends that consultations be held with the South African Post Office. I hope so, and publicly about this.”
In terms of this law, reserved mail services include:
- Delivery of all letters, postcards, printed matter, parcels and other mail items up to 1 kg in weight.
- Issuance of stamps;
- Installation of roadside collection boxes and address boxes.and
- Provision of a retail outlet where customers can avail the services they have booked.
“With its legal framework and authorization, the Post Office provides such services universally to all citizens of the country and provides basic postal services that are reasonably accessible to all citizens regardless of their physical location. There is a need for equal access at a flat rate 'at an affordable price,' the minister said in the Gazette.
In South Africa, rules restricting the delivery of goods weighing less than 1kg are widely ignored by both consumers and businesses in the logistics industry, including e-commerce companies. If they did use the Post Office, the dysfunctional state-owned company is notorious for not delivering mail on time, and even if it did, it could seriously damage the country's online commerce. is high.
The post office is currently under management rescue because it was unable to pay its creditors on time.
The planned R3.8-billion bailout package, which the Department of Communications has already fast-tracked to Treasury, will go to larger government agencies such as the Postbank, the Post Office Retirement Fund, the South African Revenue Service and the company's health system. It will be used to pay for.
Rescue managers for the company admitted last year that redress had been “difficult” but was available under the Corporations Act and the fact that the Post Office had accumulated losses of R19 billion by September 2023. There weren't many options.
Read: The Post Office will be saved – but thousands of jobs will be lost.
Interested parties will have 30 calendar days after publication of the notice in the Federal Register to provide comments to the Department of Public Affairs on the planned review. – © 2024 News Central Media
