Communications and Digital Technologies Minister Mondli Gungubele has requested that the board and management of the South African Post Office provide him with a detailed account of the circumstances that led to its provisional liquidation.
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 its provisional liquidation.
In a statement, the minister said the provisional liquidation of Sapo has been met with “serious concern”.
Gungubele wants to know the steps taken by the board to address the issue and the measures that Sapo intends to implement to resolve the situation promptly.
According to the statement, Gungubele emphasised the importance of Sapo as a crucial government service platform that 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 statement reads.
It said the minister requested that the Sapo board chair and group CEO provide a detailed briefing on all litigations and debts currently facing Sapo.
“Following a thorough study of this information, the minister plans to engage the appropriate structures and ultimately provide feedback,” it said.
Meanwhile, the Post Office said it has been engaging with stakeholders on its business turnaround strategy.
“The organisation has the support of its shareholder and is addressing the matter with the appropriate legal support to ensure that the interests of all stakeholders are protected,” it said.
The parastatal said it noted several articles that have been published recently, relating to the provisional liquidation of Sapo. “It is unfortunate that this particular provisional liquidation order relates to a debt that had since been settled,” it said.
Sapo was placed under provisional liquidation this month after a creditor went to court to recover the back rent. The Post Office has since settled its debt.
The state-owned entity said it was not in the interests of any stakeholder – including creditors, and the country – for the SA Post Office to be liquidated.
“The organisation’s role in the delivery of services to the citizens of South Africa cannot be overemphasised. The SA Post Office is following all the necessary legal steps to have this matter resolved as soon as possible,” it said.
Sapo said it remained confident that its turnaround plan: The Post Office Of Tomorrow Strategy, was sound, and that it will achieve its objectives.
“The shareholder has also demonstrated its support of this exciting strategy, by facilitating the funding of the entity to the tune of R2.4 billion with the National Treasury to enable it to settle the debt with some of its historical creditors, while implementing the strategy towards sustainability,” it said.
– BUSINESS REPORT
