Post Office still lacks turnaround plan despite R250 million spent

CAPE TOWN - Communications and Digital Technologies Committee Chairperson Khusela Sangoni Diko says nearly R250 million has been paid to the South African Post Office’s business rescue team, yet there is still no viable turnaround plan for the entity.

The Post Office was placed under business rescue almost 20 months ago and Sangoni Diko expressed concern that no tangible strategy has emerged despite the significant cash injection.

She also highlighted the Post Bank’s termination of its agreement with SASSA to process social grant payments as a worrying development.

“The Post Office, which we are very worried about, almost a quarter of a billion rand now has been spent on the business rescue practitioner fees, but we still haven’t seen a viable turnaround plan on the table. The Minister had promised when he appeared in the House that in a matter of days, he would call for strategic partners.”

Sangoni Diko noted that Minister Solly Malatsi’s announcement of bringing n a strategic partner has yet to materialise. She made her remarks during a Parliament Economic Cluster media briefing today