Post Office needs another R3.8 billion for business rescue plan

Daniel Puchert

Daniel Puchert

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Post Office needs R3.8 billion, faces liquidation

The South African Post Office (Sapo) business rescue practitioners say the state-owned mail carrier will need another R3.8 billion to fully implement their business rescue plan.

They warned that unless the Post Office urgently receives a cash injection, its reserves will run out in October 2024 and may need to be liquidated.
 
Surely it will cost less to liquidate the business. It's not like they are performing any vital role in the economy.
 
Bail them out, but reshuffle. Kick all the top people running the place and start it fresh.
 
No they wont.
they pay salaries for 6 more months and then they will need another BAILOUT.

PLEASE CLOSE IT DOWN.

You stole other peoples property and now have become IRRELEVANT.
 
No semi-logical businessman would approve such a bailout - you literally get nothing in return, just more issues
 
The estate would be placed in the hands of the Master of the High Court, who will appoint a liquidator to wind up the estate.

The liquidator would then become the final authority of SAPO.

“All jobs will be lost; business operations will cease, save only for those operations necessary to wind up the company. Furthermore, all assets will be sold at forced sale value; any proceeds will be divided amongst creditors. SAPO’s mandate cannot be met,” it said.
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https://businesstech.co.za/news/gov...-south-african-post-office-around-the-corner/

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He said that although urban hubs won’t be excluded from the restructuring, an emphasis will be placed on providing Wi-Fi, printing, scanning, and training to local townships and rural areas.
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Merge post offices into libraries, and where a town doesn't have a library, convert the old post office building into one. Move any social grant related stuff to the banks and just let the librarians handle the odd parcel or letter that needs to be sent/collected.

I would much rather my taxes go towards a library and a place of learning that has some auxiliary postal services than to a whole bunch of people sitting in an empty outdated building ignoring the few customers that are left and doing the bare minimum to cover their union protection fees.
 
“An important reminder is that the reason and efforts made to restructure this business are based on the fact that the Post Office has a social mandate that requires it to serve all South Africans,” Rooplal said.

“While city dwellers have the means to pay for and access communication networks, South Africans living in rural areas have fewer choices.”
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The audacity to say that the SAPO serves all South Africans... PEP does a better job in delivering the mail.
 
Post office's mandate should change to ensuring that people have access to postal services when there is no-one else.
So grant other organisations licences to deliver mail, and put in place laws that these organisations have to coordinate between networks to ensure maximum coverage and efficiency.
Post office's mandate then can be a tiny taxpayer funded organisation that taps into this network when necessary to ensure that there is adequate coverage when no-one else will provide services.

The amount of post offices that don't have a neighbouring retail store must be in the 10s IMO.
 
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