SA Post Office business rescue practitioners and Communications and Digital Technologies Minister Solly Malatsi are making plans to prevent the entity's liquidation.
Image: Bhekikhaya Mabaso / Independent Newspapers
Communications and Digital Technologies Minister Solly Malatsi and the SA Post Office’s (Sapo) joint business rescue practitioners (BRPs) Anoosh Rooplal and Juanito Martin Damons are scrambling to prevent the troubled entity’s liquidation.
Rooplal and Damons have reported that Sapo remains at risk of liquidation in light of its severely constrained cash position.
The BRPs, in light of being prudent and transparent, have supplied a draft founding affidavit in support of their application to terminate the business rescue to written to Malatsi and his deputy Mondli Gungubele.
“The letter and draft affidavit advised the ministers of the risk of liquidation and explained the statutory duty imposed on the BRPs should they conclude that there is no longer a reasonable prospect of rescuing Sapo.
The practical implications of a possible liquidation and the broader consequences that such an outcome may have for Sapo, its stakeholder and the country were further detailed,” Rooplal and Damons stated in their latest business rescue status report.
According to the BRPs, Malatsi has also indicated that the government is working to avoid the Post Office’s liquidation and that he has expressed his hope that it could survive for the next six months if the government’s interventions succeed.
The Department of Communications and Digital Technologies (DCDT) is considering allocating a portion of the R700 million allocated in special appropriations under the 2026 Budget, which has yet to be gazette by April 30.
Rooplal and Damons stated that part of the R700m fell short of the full R3.8 billion needed to fully implement the Post Office’s business rescue plan.
In addition, Malatsi has also reinforced his previously stated view that the DCDT is exploring public-private partnerships in collaboration with Sapo as a way to strengthen the entity and make it financially stable.
“The DCDT has undertaken to engage the National Treasury regarding a potential virement (re-allocation) of funds currently allocated to another entity within the department to be redirected to Sapo to avoid a liquidation of Sapo,” the BRPs added.
Rooplal and Damons have undertaken to continue their efforts to increase strict revenue collection measures, explore partnerships and engage with the DCDT until funding is received and an interim/new board of directors is in place.
The BRPs repeatedly complained about the ongoing uncertainty and absence of the funding, which has necessitated ongoing engagement between them and the DCDT to consider the way forward for the Post Office.
In December, Malatsi told Rooplal and Damons there would not be funding made available to Sapo and Finance Minister Enoch Godongwana did not allocate any funding during his Budget speech in February, forcing the BRPs to reassess the business rescue termination application and to evaluate the Post Office’s future viability.