Question NW630 to the Minister of Communications and Digital Technologies
30 April 2024 - NW630
Mazzone, Ms NW to ask the Minister of Communications and Digital Technologies
1.What is the status of the liquidity of the SA Post Office SOC Ltd, in view of the Post Office of Tomorrow strategy requiring a R4 billion bailout that has not been allocated to the SA Post Office in the 2024-25 budget; 2. whether the Post Office intends to collaborate with partners in the private sector to ensure that it continues to deliver services; if not, what is the position in this regard; if so, what are the relevant details?
Reply:
I have been informed by the SAPO as follows:
1. The R3.8 billion additional funding requirement has been integrated into the financial projections of the Business Rescue Practitioners (BRPs) in the endorsed business rescue plan, which received approval from the majority of SAPO creditors on December 7, 2023. The funding is essential for implementing the business rescue plan, including settling creditor dividends as outlined, investing in CAPEX to modernize mail operating facilities, branch networks, logistics fleet, and information technology infrastructure. Continuous discussions have been held with the National Treasury and the Minister of Finance to explore solutions that ensure the SA Post Office is adequately capitalized in alignment with the business rescue plan.Strategic partnerships play a crucial role in the Business Rescue Plan.
2. Numerous interested parties have put forward proposals, which will undergo a comprehensive review by an internal investment committee established by the joint BRPs at SAPO. This process will ensure a thorough evaluation of all potential partnership opportunities, to strategically select collaborations that will best support the entity's turnaround strategy.
I thank you