The Citizen reports that government is looking to turn the SA Post Office (Sapo) around after the institution was saved from liquidation.

On Monday, the Pretoria High Court granted the government’s application to place Sapo in business rescue with immediate effect, thus avoiding liquidation. The appointment of Anoosh Rooplal and Juanito Martins Damons as joint interim rescue practitioners (BRP) was confirmed. Sapo had been placed in provisional liquidation earlier this year due to its failure to pay rent and other liabilities. The embattled state-owned entity has been insolvent for some time, with a reported debt of around R9.4 billion. “The decision of the court in support of the application brought by Minister Mondli Gungubele confirms that indeed Post Office is a strategic government asset that provides vital services throughout the country, especially in remote areas where Post Office is often the main link between residents and the outside world,” the Government Communications Information System (GCIS) said on Tuesday. It highlighted that the business rescue process would assist Sapo with its turnaround plan since government had agreed to inject R2.4 billion in funding, although more bailouts could be provided in the future. “This decision will give the Post Office the much needed time and space to restructure its affairs under supervision and implement the turnaround plan to fundamentally change its business model into a solvent and viable business with broad revenue streams that leads on modern services,” GCIS said. According to Sapo’s 2022 annual report, less than a quarter of its 1,266 branches were profitable. It was previously reported that the entity planned to retrench 6,000 jobs, leaving just under 5,000 employed by Sapo

• Read the full original of the report in the above regard by Molefe Seeletsa at The Citizen

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