SAPO debt surges to R12.5 billion

[Hanno Labuschagne]

SAPO debt surges to R12.5 billion

The South African Post Office (SAPO) is insolvent, and its debt obligations have increased to R12.5 billion.

This is according to a statement from the business rescue practitioners this week, who said the state-owned company must improve revenue and implement an effective and efficient cost structure to become factually solvent.

 

[rvZA]

Liquidate it immediately and close it down. Prevent any further losses to taxpayers, debtors and more! They ran this into the ground as well. SAPO cannot be saved. Stop the madness!

 

[Mekon]

Just another good cANCer story to tell. It is truly astounding at how efficient the cANCer is at fukking everything up.

 

[Thugscub]

Useless thieving bunts.

 

[airborne]

Basically Sapo is in a debt hole it will never be able to dig it’s way out of, the only logical option is liquidation and winding it up, glorious.

 

[gregmcc]

We are aware that certain branch conditions are not optimal

 

[SubtleBeast]

the state-owned company must improve revenue and implement an effective and efficient cost structure to become factually solvent.

 

[Quicks]

Nice, living of tax payers money.

 

[username and 23 others]

I propose a philatelic-levy for all South African citizens to be tabled to parliament.

 

[deweyzeph]

Whenever I have to fill in a form these days that asks for Postal Address and Physical Address, I put "Don't even bother" in the Postal Address section.

 

[Priapus]

We know that many branches are not operational due to lack of payment of rent to landlords or IT issues or operating manually due to electricity shutdowns resulting from the non-payment of electricity accounts,” said Rooplal.

“We are aware that certain branch conditions are not optimal and we are looking to rectify this going forward. This will however take some time as we try and navigate the entity out of the financial distress that it is currently experiencing.”

That’s a lot of words for “Yea it’s ****ed”

 

[Fuzzbox]

In the real world this company would be closed.

But this country operates in an altered reality state.

 

[Hemi300c]

Close the fvcking cash cow down.

 

[G.A.S]

Given that the single biggest expense is employee cost...

 

[daveza]

Just a thought - is SAPO something a private company could turn to profit - their own staff and no govt interference?

Put another way, is this still a viable business model in the right hands.

 

[B-1]

Just a thought - is SAPO something a private company could turn to profit - their own staff and no govt interference?

Put another way, is this still a viable business model in the right hands.

There will be too many conditions about not retrenching staff etc to be viable even if it was handed over with zero debt to a private company.

 

[supersunbird]

Just a thought - is SAPO something a private company could turn to profit - their own staff and no govt interference?

Put another way, is this still a viable business model in the right hands.

Sure, people still often want to send each other physical stuff, sometimes just pieces of paper. Then there is the immediate printing for vehicle license disk (until SA moves onto something digital) at no extra courier fee, and not having to hang around for a courier, and probably some other services too

 

[airborne]

Just a thought - is SAPO something a private company could turn to profit - their own staff and no govt interference?

Put another way, is this still a viable business model in the right hands.

100% it’s viable, even more so with the massive rise of e-commerce, ordinary parcels used to be delivered between any 2 branches in around 5-7 working days, which is fine for me with most online orders. And you could order things from overseas without needing to pay courier rates. If it was still operating as it used to I’d definitely be using it.

 

[daveza]

There will be too many conditions about not retrenching staff etc to be viable even if it was handed over with zero debt to a private company.

New broom sweeps clean - and of course the retrenched staff will be able to apply for positions, there have to be some useful staff left.

If they go into liquidation the staff lose their jobs anyway.

 

[eepr0m]

Our sapo closed a year ago