Gungubele demand answers on the liquidation of SA Post Office

Minister of communications and digital technologies Mondli Gungubele has raised concerns with the liquidation of the SA Post Office (Sapo) and demanded answers from the top governing structures.

He has since requested that the Board and Management of Sapo provide him with a detailed account of the circumstances that led to this development.

The minister also 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.

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Provisional liquidation

The SA Post Office has been placed under provisional liquidation again after a successful application from one of its creditors, with dire consequences for millions of South African Social Security Agency (Sassa) grants beneficiaries who get paid from post offices across the country.

Gungubele emphasized the importance of Sapo as a crucial government service platform which 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,” Gungubele’s office said in a statement on Sunday.

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The minister has assured the public that all necessary steps will be taken to ensure continuous provision of social services, timely grant payments, efficient workforce as well as harmonious negotiations with Sapo’s creditors towards favourable outcomes.

Briefing on litigations and debts

Gungubele has requested that the Sapo Board Chair and group chief executive officer provide a detailed briefing on all litigations and debts currently facing the organisation.

“Following a thorough study of this information, the Minister plans to engage the appropriate structures and ultimately provide feedback,” the department’s acting Head of Communications, Frans Mthombeni, said.

The Master of the High Court issued a certificate of appointment to Kaap Vaal Trust on 30 March 2023.

This after the Trust applied for the provisional liquidation after Sapo was unable to pay its debts.

Sapo, which received a R2.4 billion bailout from government earlier this year, is reported to be R4.4 billion in debt.

In February, Sapo spokesperson Johan Kruger said the last time the entity posted a profit was in 2004 and the decline in its financial position began in 2006.

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