Communications and Digital Technologies Minister Solly Malatsi has received a letter from the South African Post Office (Sapo) business rescue practitioners (BRPs) expressing their intention to file for liquidation.
Malatsi said in a statement that the BRPs sent him the letter on Friday afternoon.
The minister, however, said in his view, any talk of liquidation is premature at this stage.
Liquidation talk for the Post Office is premature – minister
He said it was premature, given the extensive ongoing conversation within government, particularly between the department and National Treasury, about the situation at Sapo.
Malatsi said the engagements focus on finding a way forward that balances the urgency of the Post Office’s situation with the welfare of its staff. They also aim to ensure the responsible use of limited public funding.
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Before the 2026 Budget Speech, Sapo requested R3.8 billion to exit business rescue, but Treasury did not allocate any funds.
Instead, the Post Office would receive funds from the department of communications and digital technologies, which allocated R700 million for its universal service obligations to provide postal services in underserved areas.
Earlier on Friday afternoon, the minister and the BRPs were scheduled to present the Sapo future sustainability strategy. They were also to present the BRP exit timelines to the portfolio committee on communications and digital technologies.
Liquidation letter revealed during postponed presentation
However, the minister asked them to postpone the presentation because unresolved allocation issues remained, with the R700 million mentioned in the Budget Speech being the main concern.
Malatsi said that Treasury had not yet formally allocated or clarified the use among the Post Office, SABC, and other entities.
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Deputy minister Mondli Gungubele then flagged that he received correspondence from the BRPs about their intention to file for liquidation.
The committee discussed their dissatisfaction over the practitioners not asking for a postponement earlier. Malatsi confirmed that he did receive a letter just before he entered the meeting. However, he had not seen or studied it yet.
The committee chair, Khusela Diko, agreed not to ambush the minister about the letter mid-discussion, but asked the BRPs to explain their engagements.
Business rescue process ‘sensitive and ongoing’
Sapo business rescue practitioner Anoosh Rooplal stressed that the funding shortfall made the business rescue process sensitive and ongoing. This was because Sapo did not receive its requested R3.8 billion.
He confirmed that no liquidation application had been filed yet. He asked for the presentation deferral so the department and the BRPs could review all correspondence between each other.
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“At the last meeting, Honourable [Imraan] Subrathie was chairing the meeting and did ask the question quite explicitly: ‘Is the Post Office at risk of liquidation?’ And we responded that the risk of liquidation is not gone. It’s there,” Rooplal said.
Fellow practitioner Juanito Damons confirmed that the BRPs received a letter of confirmation about the R700 million sent to Treasury on Thursday night.
He reiterated that they had not filed for liquidation. Damons explained that they prepared a covering letter and draft liquidation application to share with the minister and committee.
Application not filed yet
“I have to think about Sapo. What do I do with the 6 000 employees that are there? What must I do with the clients who are there? What do we do with payments to beneficiaries on a daily basis?” he said.
“All these outcomes and consequences, we have taken note of. We have learned from other rescues not to be irresponsible and just issue and carry on with the processes and get entangled in legal processes that Sapo does not need at this point in time.”
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While letting the minister and BRPs deal with the matter, Diko urged for unity to avert a crisis at Sapo. She asked the practitioners and minister to move urgently, especially with Treasury.
Diko added that Treasury has said before that it expects a clear, sustainable rescue plan before funding. She also said the committee will be updated on developments.
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