Embattled Post Office set to lose car fleet

Pretoria - The beleaguered South African Post Office stands to lose a fleet of 4 000 cars after failing to pay the leasing company.

Zeda Car Leasing, trading as Avis Fleet, turned to the high court in Pretoria to have more than 4 000 vehicles returned, as the Post Office had not paid its bill in accordance with the contract between the two parties. Avis Fleet is also claiming more than R50 million.

Read: Post Office's financial woes deepen

Avis asked that in the event of the Post Office refusing to hand over the vehicles, the sheriff of the court, with the assistance of the police if necessary, be ordered to collect the vehicles and to hand them over to the company.

Avis said it would in turn keep the vehicles in safe custody, pending the finalisation of court action to recover the outstanding costs for the vehicles.

Judge Ronel Tolmay removed the matter from the roll, as the Post Office indicated it would oppose the application.

SA Post Office senior official Mahmood Salojee confirmed they were opposing the application, but declined to comment further on the merits, saying that it was part of ongoing litigation.

Avis boss Michelle Erasmus said in court papers that the company entered into an agreement with the Post Office in 1995 in terms of which the Post Office would pay certain amounts each month.

The Post Office fell in arrears and by the end of February, it owed more than R50m, Erasmus said. In terms of the agreement, Avis was entitled to terminate the agreement if the Post Office did not pay up.

Avis subsequently cancelled the agreement and said the total amount it stood to incur would only be able to be calculated once the vehicles were returned. Avis can only then calculate the exact kilometre charges and damages to the vehicles.

Last year, the Post Office undertook to make monthly payments, she said, and this was the reason why Avis did not at the time head to court.

The Post Office agreed to pay four instalments of R15m each from October last year up to January this year. It made the payment in October, but subsequently only paid in drips and drabs, the court was told.

“I am unable to predict how the respondent will react once it learns that it may be deprived of the vehicles in its possession... We stand to lose much more than the respondents, as it is only deprived of the use of the vehicles, pending the determination of the dispute.”

The cash-strapped Post Office is also facing a claim of R8m from a Cape Town-based freight company for services rendered.

zelda.venter@inl.co.za

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