The Congress of South African Trade Unions (COSATU) has slammed reported proposals to liquidate the embattled South African Post Office (SAPO)
Image: Bhekikhaya Mabaso / Independent Newspapers
The Congress of South African Trade Unions (COSATU) has slammed proposals to liquidate the embattled South African Post Office (SAPO).
This follows media reports that business rescue practitioners overseeing SAPO have indicated liquidation may be necessary if the struggling entity does not receive an urgent cash injection.
IOL previously reported that the Business Rescue Practitioners (BRPs) revealed that the government’s promised second funding tranche of R3.8 billion to fully implement SAPO’s Business Rescue Plan has not materialised.
However, Sonja Boshoff, Chair of the Select Committee on Economic Development and Trade, has disputed that any such commitment had been made, warning that relying on unapproved funding could mislead workers and the public.
In a statement released to the media, the union said it “strongly rejects any proposals to liquidate SAPO.”
"The Congress of South African Trade Unions (COSATU) rejects in the strongest possible terms ludicrous proposals to liquidate the South African Post Office (SAPO) by its supposed Business Rescue Practitioners (BRPs).
"It is beyond shameful that the very same BRPs who were appointed through a court agreement with the creditors and the Department of Communications and Digital Technologies in 2023 have nothing to show for their tenure except for retrenching thousands of SAPO employees and plunging their families into absolute poverty and despair, closing hundreds of branches and thus further shrinking its customer base and potential to recover".
The union said it will never agree to liquidation and called on the government to remove the BRPs and appoint competent administrators.
"The only liquidation that must take place is that of the BRPs. It is time that the Department approaches the courts to remove the BRPs and put in place competent administrators who have the capability and commitment to ensuring its stabilisation and setting it back upon the path to sustainability".
"COSATU will be seeking urgent engagements with the Minister and Parliament’s Portfolio Committee for Communications and Digital Technologies to provide comfort to workers that their jobs will be secured, monies paid and that a turnaround plan will be put in place. It is critical that Treasury provide the previously committed financial support to enable such a turnaround to be implemented".
mthobisi.nozulela@iol.co.za
IOL Business