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Eyewitness News
03-06-2025
- Business
- Eyewitness News
WC Finance MEC hopes additional funds to education, health will help plug gaps
CAPE TOWN - Western Cape Finance MEC Deidre Baartman says she hopes the additional funds allocated to provinces for education and health will help plug the gaps at both departments. During his budget speech two weeks ago, Finance Minister Enoch Gondongwana announced additional funds for provinces to retain teachers, healthcare professionals and hire new staff. Earlier this year, more than 2,400 teaching posts were cut in the Western Cape because of a budget shortfall of R3.8 billion. Baartman re-tabled the Western Cape's 2025/26 budget on Tuesday, following the withdrawal of the national budget in March. She said education and health would receive R100 billion each from the province's R269 billion budget over the next three years. "It should be noted that Minister Godongwana announced additional funding for education and health in provinces. This funding will flow to provinces later in the year and does not form part of this budget. Once received, we will allocate the funding to the respective departments accordingly."
The Star
30-05-2025
- Health
- The Star
Weskoppies Hospital remains fully operational despite power cut, says Gauteng Health
The Gauteng Department of Health (GDoH) has confirmed that Weskoppies Psychiatric Hospital remains fully operational and that patient care has not been compromised, despite the disconnection of electricity at the facility by the City of Tshwane on Monday. According to the department, the power cut occurred while a payment of R1.2 million for March and April electricity consumption was already being processed. The delay in settling the account has been attributed to the transition into the new financial year. 'The hospital normally makes additional payments to ensure continuous electricity supply, however, this time around it could not do so,' said the Gauteng health spokesperson, Motalatale Modiba, adding that the outstanding amount is currently in the payment process. In the meantime, the facility has remained functional through the use of five backup generators and a solar power system. 'We want to assure the public again that the backup power supply system, which includes five generators and a solar system at Weskoppies, is fully operational, and patient care will continue uninterrupted while the normal electricity supply is being reconnected,' said Modiba. The department also highlighted that, on the same day as the power disconnection, it had already paid R3.8 million to the City of Tshwane in relation to other healthcare facilities in the municipality.
The Citizen
29-05-2025
- Business
- The Citizen
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. ALSO READ: More millions to save jobs at SA Post Office 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'
Eyewitness News
29-05-2025
- Business
- Eyewitness News
Business rescue practitioners tells Parliament task to save struggling Post Office a success
CAPE TOWN - The South African Post Office (SAPO)'s business rescue practitioners have told Parliament their task to save the struggling entity has been a success. They told Parliament on Wednesday that the South African Post Office has seen the first positive balance sheet with a net asset value of R1 billion - the first since 2012. But the turnaround has come at a huge cost, with more than 4,000 employees retrenched and hundreds of branches closed, affecting poor and rural communities. The Post Office was placed under provisional liquidation in February 2023, and a few months later, Anoosh Rooplal and Juanito Damons were appointed as the joint business rescue practitioners. They told the communications and digital technologies committee that they've reached a point where they can start planning their exit. Rooplal said the process has yielded a lot of positive results. "This certainly has been a complex business rescue process; it hasn't been easy, but nonetheless, much progress has been made since our appointment." He said the entity has also resolved its debt problem, which amounted to billions. "Effectively, we're handing back an entity, a Post Office… that's virtually debt free." The rescue team told the committee that the Post Office still needs a cash boost after being denied a R3.8 billion bailout by Treasury in 2024. ALSO READ: Mashatile says govt not ready to let go of cash-strapped Post Office yet
IOL News
28-05-2025
- Business
- IOL News
Business rescue practitioners prepare to file court papers to exit Post Office
Business rescue practitioners say they have informed the Department of Communications and Digital Technologies of the pending court application to terminate the business rescue at the South African Post Office. Image: Independent Newspapers Archives The business rescue practitioners are preparing to file papers with the High Court as part of the exit strategy from the South African Post Office (SAPO). This was revealed by co-business rescue practitioner Anoosh Roopal, along with his co-business rescue practitioner Juanito Damons, who briefed the Communications and Digital Technologies Portfolio Committee on Wednesday. 'We are in discussions with the department around the business rescue having to end and business rescue practitioners having to leave,' Roopal said. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ SAPO was placed under provisional liquidation in February 2023 and later on business rescue in July 2023 after the board of directors was dismissed two months earlier. Upon their appointment, Roopal and Damons developed a business rescue plan that was approved by the creditors and then assumed management control of the business. Roopal said they were now in discussions with the Department of Communications and Digital Technologies and preparing a court application to terminate the business rescue process. This takes place as the financial plan to ensure SAPO remained a going concern was being finalised amid moves to secure payment of R509 million of statutory and payroll creditors owed to the South African Revenue Service (SARS) and medical aid schemes. 'Despite the R3.8 billion not being provided, the business rescue practitioners and the department are in discussions to develop an alternative plan to pay the remaining 18-cent creditors,' he said. Damons told the committee that they had already consulted their attorneys about the pending application, and the department was aware that they were preparing an application. 'We will ask the court to terminate the business rescue, and we would also ask for consent so that Anoosh and I can file with the Companies and Intellectual Property Commission a notice of substantial implementation.' Damons said the application comes at a good time, as there was a specialised court in Gauteng that dealt with insolvency and business restructuring. 'To get to that court, it will take us about three to four weeks if we go on a semi-urgent basis, for example,' he said. Court papers will be drafted next week, and engagements with the department and the unions will take place to make sure all are on the same wavelength. Damons said that when a business enters business rescue, it has to show that the company does not have the financial ability to cover its operational expenses when they become due and payable. 'At SAPO, at least that does not give us sleepless nights, we have enough funding from June and the ensuing six months. SAPO will be able to pay its operational expenses next six months.' Roopal said SAPO now has a turnaround strategy in line with its fulfillment of the strategic objectives at the entity. 'What we did was the turnaround strategy. We are quite comfortable that the Post Office has been equipped with a strategy that is viable. All of this depends on funding,' he told the committee. He also said they were looking together with the Department of Communications and Digital Technologies to find an alternative to pay about R509m owed to statutory bodies such as SARS and medical aids. 'That will discharge the rescue plan and hand over the business back to the shareholder,' said Roopal. Damons said the department has asked them to negotiate with the creditors owed R509m in statutory and payroll deductions. 'We started talking to these creditors about possible deferment of payment. The department asked us to have a discussion around deferring these payments until 31 March 2026. We reached out, and we have not finalised anything.' However, Damons said there was a lot of work left in terms of the exit strategy. 'We don't want to be irresponsible by leaving SAPO and finding they are back in this situation, and there is another application looming. 'Exiting business rescue would mean giving up the moratorium that is in place that protects SAPO from any legal proceedings; to start proceedings must get consent of business practitioners before approaching the court.'
