The South African Post Office (SAPO) could face liquidation after its business rescue practitioner indicated plans to approach the courts, a move that has been communicated to Communications Minister Solly Malatsi.
The development was confirmed in a letter sent to the minister on Friday, notifying him of the practitioner’s intention to file for the liquidation of the struggling state-owned entity.
However, Malatsi said such a step would be premature while discussions within government are still underway, particularly with National Treasury, to determine the future of the postal service.
SAPO entered business rescue in July 2023 in an effort to avoid liquidation, after being placed under provisional liquidation earlier that year as authorities attempted to address the entity’s insolvency, mounting debt and operational inefficiencies.
The business rescue practitioner has requested R3.8 billion in funding to support the turnaround process, but National Treasury has not yet allocated the funds.
Malatsi said his department remains engaged in efforts to find a sustainable solution.
“My office has received correspondence from the SA Post Office Business Rescue Practitioner expressing their interest to file for the liquidation of SAPO,” Malatsi said.
“It is my view at this stage that talk of liquidation is premature given the extensive ongoing conversations within government, particularly between the department and National Treasury regarding the prevailing situation at the Post Office.”
He added that discussions are aimed at finding a way forward that balances the urgency of SAPO’s financial crisis, the welfare of its employees and the country’s limited public resources.
Government officials have indicated that negotiations are continuing as authorities seek a viable path to stabilise the financially troubled postal service.