News24.com | Grant payments won't be interrupted by Post Office liquidation hurdle - Gungubele

The South African Post Office received a R2.4 billion bailout from Treasury to fund a turnaround programme.

• Minister Mondli Gungubele says steps will be taken to ensure grant payments continue, as the SA Post Office (SAPO) faces provisional liquidation.
• The minister wants a detailed briefing of the outstanding debts and the litigation SAPO faces.
• SAPO received a R2.4 billion bailout from the Treasury, which will be used to settle some historical debt.
• For more financial news, go to the News24 Business front page.

Social services such as grant payments disbursed through the South African Post Office will not be adversely impacted by a provisional liquidation it is facing, assured Communications and Digital Technologies Minister Mondli Gungubele.

In a statement on Sunday, the minister raised "serious concern" over reports that the South African Post Office (SAPO) is facing provisional liquidation. Gungubele has requested the board and management of SAPO provide a "detailed account" of the circumstances that led to this and the steps the board is taking to address the issue.

Gungubele also seeks a "detailed briefing" on all the debt and litigation the organisation faces.

"The minister assures the public that all necessary steps will be taken to ensure continuous provision of social services, timely grant payments, efficient workforce, and harmonious negotiations with SAPO's creditors towards favourable outcomes," the statement read.

News24 previously reported that SAPO faces two provisional liquidation orders related to rental payments.

READ | Provisional liquidation orders issued against Post Office as creditors scramble for payment

SAPO received a R2.4 billion bailout in the 2023 national Budget to aid a turnaround plan. The entity recorded a R2.3 billion loss for the 2020/21 financial year, News24 previously reported.

According to SAPO, the funding would settle some of its historical debt and also implement a turnaround strategy.

Gungubele said the Post Office was a crucial government service platform catering to millions of citizens and could not afford to cease its operations.

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