Central SA
Post Office in business rescue─── TSHEHLA KOTELI 08:00 Wed, 06 Sep 2023
The South African Post Office (SAPO) has been identified as financially distressed and unable to honour many of its financial obligations.
The South African Post Office (SAPO) has been identified as financially distressed and unable to honour many of its financial obligations.
Anoosh Rooplal and Juanito Damons were appointed to supervise SAPO’s business rescue process. Anoosh Rooplal said some of SAPO’s financial obligations include many aspects of shortages and keeping machinery operational. This is why the SAPO was placed into business rescue.
— SA Post Office (@PostofficeSa) August 17, 2023
An order was granted by the High Court to place SAPO into provisional liquidation on 9 February 2023. In July, the Department of Communications and Digital Technologies made an application to place SAPO into business rescue. It was granted in the same month and the court appointed Rooplal and Damons as the joint business rescue practitioners.
The branch network is the cornerstone of SAPO and many South Africans. “We are dealing with the branch network as a priority notwithstanding the financial and operational constraints that beset them, together with other pertinent issues. We are hoping to have some resolve on this matter in due course,” said Rooplal.
The DA in the Free State has raised concerns over the state of the Welkom-based Post Office. Councillor René Steyn said an oversight visit conducted by Member of Parliament for Matjhabeng, George Michalakis, and DA Councillors had revealed a series of alarming obstacles that are hindering the Post Office from fulfilling its pivotal community role:
• The disc machine, a key component for crucial operations, has been out of order for the past two months. Moreover, the closure of the Traffic Department, which supplies essential "face-value" forms for license renewals, has further exacerbated the situation.
• Printer toner shortages have forced staff to cover printing expenses personally, while the public is urged to handle their copies. A previous service agreement with Nashua, aimed at mitigating this problem, was terminated due to non-payment.
• Only two out of the 13 web post machines at the counters are functional, leading to manual and time-consuming transaction recording.
• A dysfunctional alarm system intensifies security worries and jeopardises the safety of both staff and visitors.
• A malfunctioning security keypad restricts unauthorised access to the mail centre, exacerbating operational challenges.
Steyn said the DA will submit a written parliamentary inquiry to the Minister of Communications and Digital Technologies, Mondli Gungubele, to ascertain the full extent of the crisis and oversee the department's intervention.
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