Communications and Digital Technologies Minister Mondli Gungubele has requested that the board and management of the South African Post Office (Sapo) provide him with a detailed account of the circumstances that led to the provisional liquidation.
He wants to know what led to these development, and the steps taken by the board to address the liquidation.
A department statement said Gungubele emphasised that Sapo was a crucial government service platform which caters to millions of citizens, and cannot afford to cease its operations.
“The department and Sapo must work diligently to ensure that the Post Office transforms into an independent and profitable business entity for the benefit of the country’s citizens. The minister assures the public that all necessary steps will be taken to ensure continuous provision of social services and timely grant payments; an efficient workforce; and harmonious negotiations with Sapo’s creditors towards favourable outcomes,” the department said.
Gungubele’s request, according to the department, was that Sapo’s board chair and group CEO provide a detailed briefing on all litigations and debts currently facing the state-owned entity.
“Following a thorough study of this information, the minister plans to engage the appropriate structures, and provide feedback,” the department said.
The DA’s spokesperson on communications, Dianne Kohler Barnard, last week said her party has been consistent in calling for the liquidation of the Post Office.
“We stand firm in our belief that the Post Office, being one of the many bottomless pit state-owned entities battling operational issues is beyond repair, and should be liquidated.
Sapo has lost millions in taxpayer money annually, since 2013. It has slowly collapsed, despite massive bailouts, and is cutting jobs, and closing branches,” she said.
Kohler Barnard also said the DA was against any form of bailout and will write to the finance minister, calling on him to confirm that there is no new bailout for Sapo. But if there is, it must be used to pay the benefit contributions for its staff and pensioners, not to cover Sapo’s debt to avoid liquidation.