This news aggregator site highlights South African labour news from a wide range of internet and print sources. Each posting has a synopsis of the source article, together with a link or reference to the original. Postings cover the range of labour related matters from industrial relations to generalist human resources.
BL Premium reports that the SA Post Office (Sapo), which was put in provisional liquidation in February, has applied to the courts to be placed in business rescue, which woulf enable it to avoid further lawsuits by unpaid creditors and perhaps escape liquidation.
Sapo spokesperson Suzie Khumalo said on Friday that a formal application had been made for business rescue. The court hearing is set down for 4 July. This comes after communications and digital technologies minister Mondli Gungubele told the state-owned company’s provisional liquidators by letter in May that the cabinet supported the move. He urged them not to make any “precipitous decisions” that might lead to Sapo going under. The letter also indicated that should the business rescue proceed, the R2.4bn bailout announced by the Treasury in February would be made available to Sapo, possibly along with additional funds. However, fear has been raised that going into business rescue could lead to the demise of Postbank. Provisional liquidator Anton Shaban said in papers filed with the court that business rescue and final liquidation could mean Postbank would not receive most of the R4bn it was owed. Shaban argued against Sapo being placed in final liquidation as it provided an essential service to SA citizens, including the delivery of parcels and postal services, and was the address at which grants were paid to citizens. “It would be devastating for South Africans should the services cease,” Shaban said.
- Read the full original of the report in the above regard by Katharine Child at BusinessLive (subscriber access only)
Get other news reports at the SA Labour News home page