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Minister Malatsi Suggests Privatization as the Best Option for the Struggling Post Office

Communications Minister Solly Malatsi has stated that the government is considering privatizing the South African Post Office (Sapo).

The minister made these remarks in light of Sapo’s severe financial situation and its need for another government bailout.

Sapo stated that the situation was so critical that if the government did not grant the nearly R4 billion in funds, it would face liquidation.

In September, the Sapo requested R3.8 billion in funds from the National Treasury.

Joint Business Rescue Practitioners (BRPs) Anoosh Rooplal and Juanito Damons stated that these funds were required to fully conduct the approved business rescue (BR).

Malatsi has recently argued that privatisation scenarios may be a viable or preferable alternative to a massive government bailout.

The minister has requested for the cooperation of National Treasury to look into the privatisation for the ailing post office.

Malatsi proposes forming a task team to identify private financial and operational partners to support Sapo.

This task force will also look into the best ways to involve commercial partners in getting the post office back on its feet.

“This will enable serious consideration of privatisation scenarios as a preferential option to further funding from the fiscus,” reported Malatsi.

“In addition, we will work to ensure that there is accountability for failure to meet previous conditions that were imposed for the financial support the post office received from the fiscus.”

Finally, the minister stated that one of the primary goals is to assist in modernizing the post office and its operations in order to promote innovation and competition.

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