The SA Post Office (SAPO) is confident a resolution to the legal cases against it by two former CEOs will be resolved, says chairman Vuyo Mahlati.
Speaking before the Parliamentary Portfolio Committee on Communications last night, Mahlati indicated the action brought against SAPO by former CEO Maanda Manyatshe was in discussions and that "he had come off the numbers he was initially asking for".
Allegations of corruption by another former SAPO CEO, Khutso Mampuele, had caused Manyatshe to resign as head of network operator MTN's local operations. Manyatshe subsequently began proceedings to sue SAPO for R200 million in damages.
Members of Parliament expressed their concern about the amount.
"R200 million is about 60% of the annual subsidy government gives to the post office," Kgotso Khumalo (ANC) said.
Manyatshe's action follows allegations of fraud by axed CEO Mampeule in 2006, after he had taken over the role from Manyatshe, which ultimately led to criminal charges being brought against the then MTN MD.
It also takes into account an interview given by Mampeule to the Mail & Guardian newspaper, which Manyatshe failed to have suppressed.
Mampeule was soon after chopped by communications minister Ivy Matsepe-Casaburri, who revoked his appointment at SAPO, and this led to an audit and tightening up of the institution's corporate governance. He has since begun his own legal actions against SAPO and these have now proceeded to pre-trail discussions.
In response to a question from portfolio committee chairperson Ismail Vadi, Mahlati said the relationship between the post office and the Department of Communications was good.
The relationship was clearly defined through the Postal Services Act, the shareholder compact, a memorandum of understanding between the two and the governance structures that were put in place, she explained.
"We don't have much to complain about there," she said.
Related story:
SAPO, MTN boss face off
Share