The South African Communications and Digital Technologies Minister, Mondli Gungubele, has expressed serious concerns regarding reports that the South African Post Office (SAPO) is facing provisional liquidation. The minister has requested that SAPO’s board and management provide a detailed account of the circumstances that led to the situation, as well as the steps that the board is taking to address the issue. He has also requested a detailed briefing on all of the debt and litigation that the organisation is dealing with. SAPO has received a R2.4 billion bailout from the Treasury, which will be used to pay off some of its historical debt.
The ministry has assured the public that the provisional liquidation will not have an impact on social services such as grant payments disbursed through the SAPO. The minister has promised to take all necessary steps to ensure the continuation of social services, timely grant payments, an efficient workforce, and harmonious negotiations with SAPO’s creditors that result in favourable outcomes.
It was previously reported that SAPO is facing two provisional liquidation orders related to rental payments. SAPO recorded a loss of R2.3 billion for the 2020/21 financial year. The Treasury funding is expected to be used to settle some of the historical debt and to implement a turnaround strategy.
According to Gungubele, the Post Office is a critical government service platform that serves millions of citizens and cannot afford to close its doors. The public has reacted negatively to the news, with many blaming the government for appointing useless and incompetent ANC cadres to the Post Office, which has resulted in SAPO being in the red for the past 15 years.
Some members of the public have suggested that the government wants to take over the Post Office. Others have claimed that the government has fundamentally broken the Post Office by appointing largely ineffective and incompetent ANC cadres to the Post Office, as they have done to all other SOEs. They believe that decisions made by the government, such as the separation of Postbank from SAPO and the refusal to consider retrenchments, have contributed to SAPO’s financial difficulties.
Some members of the public have suggested that there are more than enough courier companies to pick up the slack with physical deliveries, and grants can be paid through the banking sector. They believe that the government lacks the ability to run a business and should not be involved in the affairs of the SAPO.
According to some members of the public, Mark Barnes’ offer to buy SAPO has some merit. They believe Barnes knows what he’s doing and that his knowledge can help the organisation turn around.
Finally, the SAPO’s provisional liquidation has sparked widespread concern among the public and the government. The government has promised to take all necessary steps to ensure the continuity of social services and the timely payment of grant payments. Some members of the public, however, have criticised the government’s previous decisions and believe that it lacks the ability to run a business. They have suggested that private investors such as Mark Barnes could assist in turning around the organisation.