Communications Minister Solly Malatsi has said government is considering the option of privatising the South African Post Office (Sapo).
The minister made these comments in light of the fact that Sapo is in dire financial straits and is seeking another government bailout.
Sapo said that the situation was so serious that should government fail to provide the almost R4 billion in funding, it could be at risk of being liquidated.
In early September, a formal application for R3.8 billion in funding for the Sapo from the National Treasury was submitted.
Joint Business Rescue Practitioners (BRPs), Anoosh Rooplal and Juanito Damons said these funds were needed in order to fully implement the approved business rescue (BR).
Another option
Malatsi has now suggested that privatisation scenarios could be a viable or preferred option instead of a huge government bailout.
The minister has asked for the support of National Treasury to look into the privatisation for the ailing post office.
Malatsi is calling for a task team to be set up to explore and find private financial and operational partners to assist Sapo.
This task team will also explore the best ways to include private partners in getting the post office back on its feet.
“This will enable serious consideration of privatisation scenarios as a preferential option to further funding from the fiscus,“ Malatsi said.
“In addition, we will work to ensure that there is accountability for failure to meet previous conditions that were imposed for the financial support the post office received from the fiscus.”
Lastly, the minister said that one of the main goals it to help modernise the post office and its operations in order to drive innovation and competitiveness.
IOL BUSINESS