R250 Million Gone, But Still No Turnaround Plan For Struggling SA Post Office

Almost 20 months into business rescue, the South African Post Office (SAPO) is still without a clear recovery strategy—despite nearly R250 million already being spent on rescue practitioner fees.

Communications and Digital Technologies Committee Chairperson Khusela Sangoni Diko raised alarm during a Parliament Economic Cluster briefing, saying the situation has gone beyond concerning.

“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,” Sangoni Diko stated.

Post Bank Withdrawal Deepens The Crisis

The institution’s troubles were further compounded when the Post Bank ended its agreement with the South African Social Security Agency (SASSA) to process social grants.

The termination of this critical partnership not only slashes the Post Office’s revenue but also erodes its ability to provide essential services to millions of South Africans.

Sangoni Diko warned that this development places SAPO’s future in even greater jeopardy.

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Minister of Communications and Digital Technologies Solly Malatsi had promised Parliament that a strategic partner would be announced “within days.” Yet weeks later, there is still no movement.

“The Minister had promised when he appeared in the House that in a matter of days, he would call for strategic partners,” Sangoni Diko reminded the media—pointing out that hope for a rescue plan is quickly slipping away.

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