Minister Wants Answers Regarding Post Office Liquidations



The financial challenges facing the South African Post Office have been a cause for concern. This comes after the entity was placed under provisional liquidation last week.



The South Africa Post Office (SAPO) was recently placed under provisional liquidation as an interim measure after it defaulted on payments for nearing all of its 1,300 branches.

Minister of Communications and Digital Technologies Mondli Gungubele is concerned after the provisional liquidation of the South African Post Office. The minister wants answers about what will be done to resolve the current situation.

The embattled state-owned entity owes the South African Revenue Service (SARS) millions in taxes for workers and has not paid contributions on behalf of its approximately 10,000 employees. 

Minister Gungubele requested a detailed account of the challenges facing SAPO to ensure it transforms into an independent and profitable business. This must include information on litigations and debts currently facing the organisation. 

The minister assured South Africans that SAPO will continue to provide social services to them and make timely social grant payments to beneficiaries. 

The minister assures the public that all necessary steps will be taken to ensure continuous provision of social services, timely grant payments, efficient workforce, and harmonious negotiations with SAPO's creditors towards favourable outcomes.

While SAPO received a R2.4 billion bailout from the National Treasury, its current debt exceeds its assets by R4 billion.  

Former SAPO CEO Mark Barnes described the financial state of the post office as the most extraordinary decaying value. 

They explained that in February 2019, the post office had a positive net asset value of R5.2 billion In March 2022, SAPO indicated a negative net asset value of R4.1 billion. This is a decline of about R9 billion over the last four years. 

SAPO said they are following all the necessary legal steps to have this matter resolved as soon as possible. They added that they remain confident that their turnaround pay, The Post Office Of Tomorrow Strategy, will meet its objectives. 

The strategy aims to digitise SAPO and bring it in line with new technological developments in the postal environment.


Suggested Article:

Sassa administrators attend to social grant recepients

Beneficiaries of Sassa social grants will have to make alternative arrangements when collecting their payments. This comes after the agency recently revealed news about its grant collection systems. 




Google News

Advertisement i

Advertisement m