SA Post Office placed under business rescue

The South African Post Office was placed the state-owned enterprise under supervision following an urgent application by Minister Mondli Gungubele. Picture: David Ritchie/African News Agency (ANA)

The South African Post Office was placed the state-owned enterprise under supervision following an urgent application by Minister Mondli Gungubele. Picture: David Ritchie/African News Agency (ANA)

Published Jul 11, 2023

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Cape Town – Communications and Digital Technologies Acting Minister Enoch Godongwana has welcomed the Gauteng High Court, Pretoria’s ruling placing the SA Post Office (Sapo) in business rescue with immediate effect.

Judge Elmarie van der Schyff placed the state-owned enterprise under supervision following an urgent application by Minister Mondli Gungubele.

Judge van der Schyff said any possibility of Sapo being rescued depended on the political will to bring about a turnaround.

“It is gleaned from the minister’s papers, and no objective reason exists to doubt the correctness of the evidence provided under oath, that Cabinet has not only pledged to provide Sapo with the initially earmarked R2.4 billion, but also indicated its intention to support Sapo’s application for an additional R3.8bn in the October budget.”

Welcoming the decision, Godongwana said he noted the appointment of Anooshkumar Rooplal and Juanito Martin Damons as joint interim business rescue practitioners.

According to Godongwana, the decision would give Sapo much-needed time and space to restructure its affairs under supervision.

“To implement the turnaround plan to fundamentally change its business model into a solvent and viable business with broad revenue streams that leads on modern services.

“The challenge is on Sapo, the department and all stakeholders to live up to the commitments made in the application,” he said.

Cape Times