The Select Committee on Economic Development and Trade has asked questions about the ongoing business rescue practitioners (BRPs) process at the Post Office when the BRPs briefed the committee yesterday on the financial sustainability of the South African Post Office.
Committee member Mr Kennedy Pienaar wanted to know how much the BRPs had been paid since taking over at the post office in 2023. “Too much money is required to pay creditors and we not clear how the value will be transferred to normal people expecting the service from the post office and the employees who run the service,” he said. “I am concerned that nothing is going change. In a few years’ time we will be sitting here and hearing about this plan and another bail out. There has to be a point where we say up to here and no further.”
Committee member Mr Bino Farmer was also concerned about financial sustainability, in particular he sought further details about the government money being spent by the BRPs. “R1 billion was paid to creditors and what happened to the rest of the money? How did we get to the R3.8 that is now needed as per the BRP plan?” he asked.
The BRPs replied that R3.8 billion is required for to administer the Post Office effectively and to successfully implement the plan that has been voted for and which is supported by creditors.
Deputy Minister of Communications and Digital Technologies, Mr Mondli Gungubele, explained that the rescue plan is a government-led process that is approved by a court of law. He said the R3.8 billion is part of the initial application for the business rescue, not a request from the BRPs.
Meanwhile, committee member Ms Mapule Dlamini criticised what she sees as the government’s failure to invest in Post Office infrastructure. She also mentioned that retrenched workers should return to work at the Post Bank. “Invest in the services and infrastructure at the Post Office; we do not support the bail out. Even the BRP plan must include this,” she said.
Committee member Mr Patrick Mabilo called for the Post Office to be saved, as many South Africans depend on it. He also wanted to know how long the BRPs will remain in place. “The future of the Post Office is to uniquely position it as a digital hub, one that moves with the times. I still believe there is a future for the Post Office,” he added.
The committee will receive a presentation about the turnaround strategy in-camera.
Sibongile Maputi
19 June 2025
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