Post Office move will cost R300m

2010-06-26 13:18

The head office of SA Post Office (Sapo) is being relocated from a

building it owns to another where the parastatal is expected to foot a bill of

about R300 million in a 10-year rental deal.

The head office is being moved from its old building in Pretoria

Central to a plush working environment at Eco Point Office Park in Centurion.

The parastatal will have an option to buy the building when the lease runs

out.

For each month of the first year of the lease, which sources in the

Post Office said has started running though the new building has not been

occupied, the parastatal is paying R1.8 million for rent. This means for the

first year of the lease the Post Office will fork out an inflation-linked

R21.6 million.

If inflation were to average 6% over the lease period, the

parastatal will end up paying R285 million.

Spokesperson for the Post ­Office Lungile Lose defended the

expenditure saying the Pretoria building has become too small for the needs of

the parastatal and cannot be extended to accommodate future space

requirements.

Lose said the head office functions were split between seven

buildings across Johannesburg and Pretoria.

“Consolidating the group’s head office activities into a single

complex will reduce the number of buildings we rent, ­improve operating

efficiency by locating functions together and reduce the operating costs of its

head office function. For instance, we will save money by ending the rental

agreements associated with our head office functions in Johannesburg, Bryanston

and Isando.”

Lose said the decision to lease the Centurion property was taken

after an intensive cost analysis process. But he couldn’t say when the

relocation was expected to take place.

An independent quantity ­surveyor who preferred to remain anonymous

accused the parastatal of embarking on a fruitless and wasteful

expenditure.

“The money could have been invested in buying a new or existing

building and renovating it.”

 


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