Deputy Minister of Communications and Digital Technologies Philly Mapulane says government will not allow the Post Office to collapse. He says this is the reason for the Post Office being given an R2.4 billion bailout.
In response to questions from the National Council of Provinces, Mapulane claims that the Post Office of Tomorrow will improve services.
“We plan to turn the Post Office around through the implementation of the Post Office of tomorrow. For us to succeed in doing that we require funding for this post office. And we have had engagements with the national treasury. They were getting to appreciate the strategic importance of the post office as a service point of our community. And that’s why treasury had agreed to offer the two point four billion.”
The Post Office suffered a net loss of over R2 billion for the last financial year. This has left the new Communications Minister Mondli Gungubele worried. Gungubele says he’s also concerned about the possible liquidation of the cash-strapped post office. It has already been placed under provisional liquidation.
“The provisional liquidation of the post office has the potential to affect ordinary south africans who depended on sapo services if it becomes a final court order. … No less than 12 000 workers will be affected. Therefore the minister has instructed both sapo and the department to do everything possible to prevent sapo from liquidation.”
The Post Office was given about R2.4 billion by the government as a bailout. Gungubele explains how is this money going to be spent.
“The R2.4 billion conditions are about addressing legacy issues such as payment of creditors and also launching of the post office of tomorrow implementing the quarterly remedies of the department and post office to track and communicate the use of that money.”
