Post Office rescue plan is working, but more money is needed
Three creditors still need to be paid a combined amount of R509 million.
Pensioners queue outside the Post Office in Westgate, awaiting their payouts. Picture: Devina Haripersad
The Business Rescue of the South African Post Office (Sapo) is nearing completion, and the practitioners reported back positive results to parliament. However, a bumpy ride is still ahead.
Business Rescue Practitioner (BRP), Anoosh Rooplal and Juanito Damons told the parliament's Communications and Digital Technologies committee that they are 75% done with the handover process to the shareholders of Sapo on Wednesday.
However, they need to devise a plan to address outstanding creditors.
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Post office debt
The committee was told that the Post Office was unable to receive R3.8 billion. Therefore, they are still in discussions with the department regarding an alternative plan to settle outstanding creditors.
The creditors that still need to be paid are the South African Revenue Services (Sars), the Pension Fund, and Medipos. The three need to be paid a collective of R509 million.
For the financial year 2024-25, the practitioners were able to pay creditors a total of R1 billion.
Post office successes
The committee was informed that, for the first time since 2012, Sapo had a positive balance sheet with a net asset value (NAV) of R1 billion.
Sapo was placed under provisional liquidation in 2023, but thanks to the work of Rooplal and Damons, the entity has been discharged.
'The BRPs applied to have the provisional liquidation order discharged. The matter was heard on 22 November 2024, and the provisional liquidation order was discharged.'
The entity is currently paying its liabilities in the ordinary course of business.
ALSO READ: Ramaphosa signs Post Office Bill into law
Retrenchments
The practitioners stated that they issued 4 875 termination letters for employees who were affected by the retrenchment. 'All affected employees' notice period ended on 30 April 2024, and 4 342 employees were retrenched.'
Sapo reported that year-on-year expenses of R2.7 billion were reduced by R2 billion, with staff costs being the main contributor to this decrease. As of 31 March 2025, Sapo had 5 592 employees.
Additionally, the entity reduced the number of operating branches to 657.
Sapo receives money
The entity received R150 million from the Department of Communications and Digital Technologies in March 2025.
When it comes to revenue, the entity reported year-on-year revenue of R1.7 billion, a decline of R700 million. They attributed this decline to a lack of investment in infrastructure.
Achievements
The BRP outlined the following goals to be achieved:
Improving cash management processes
Creditor Compromise
Completion of S189 payments (final tranche of settlements)
Achieved a target of 657 branches
Employee reduction, R1.2 billion annual cost savings
Data Centre Migration
They are in the process of achieving the following goals:
Investment in fleet management systems
Strategic partnerships
Appointing suitably qualified, skilled and competent management and directors
Outstanding goals
Statutory and payroll creditors
Hardware infrastructure and software applications modernisation
Investment in sales and business development team for bulk mail segment
Strategic and equitable partnership implementation
NOW READ: Parliament discusses SA Post Office's fate a month after 'day zero'
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