
Government has confirmed that provisional liquidation of SA Post Office is going ahead.
The Post Office has consistently experienced annual losses, and impending layoffs could result in the loss of 6,000 employees.
It is reported that SA Post Office’s debts stand at some R4 billion.
Kaya Biz with Gugulethu Mfuphi spoke to Mark Barnes – Former South African Post Office (SAPO) CEO about what is currently unfolding in the embattled state-owned entity.
LISTEN TO THE FULL CONVERSATION HERE:
Mark Barnes gave his view on what the situation is looking like at the Post Office.
“It is much worse that we think of the outside, the disintegration is far wider that we think, my view is that the Post Office is probably technically bankrupt, that it is to say that its liabilities are far more than it’s assets, this is probably for over a year now. That is not to mention paying over medical aid contributions, pension funds and tax.”
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Mondli Gungubele claimed in a statement on Sunday that the Post Office is still a vital government agency that serves millions of people and cannot afford to stop operating.
“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.
“All necessary steps will be taken to ensure continuous provision of social services, timely grant payments, efficient workforce, and harmonious negotiations with SAPO’s creditors towards favourable outcomes.”
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