R250 million spent, yet Post Office turnaround remains elusive
Parliament’s Communications Committee calls on ministers to resolve SAPO and Post Bank impasses, warning against weakening vital state service infrastructure.
Image: Bhekikhaya Mabaso/Independent Newspapers
The South African Post Office (SAPO) has spent nearly R250 million on business rescue practitioner fees in just two years, yet a sustainable turnaround plan remains elusive.
During Monday’s media briefing, Khusela Diko, chairperson of Parliament’s Portfolio Committee on Communications and Digital Technologies, expressed concern over the slow progress and rising costs of SAPO’s ongoing business rescue process.
Sangoni-Diko stated that while the committee welcomes early signs of stabilisation at SAPO, the institution still lacks a viable and implementable strategy to secure its future.
“Two years into business rescue, progress at SAPO has been slow and costly, with almost R250 million spent on business rescue practitioner fees and thousands of jobs lost. While we welcome signs of stabilisation, a sustainable turnaround plan remains elusive,” she said.
She criticised the delay in the issuing of a public call for strategic partnerships, a commitment previously made in Parliament by Minister Solly Malatsi, as yet another indication of the lack of urgency in securing the Post Office’s future.
“The Post Office of the future must be realised and not just spoken of endlessly,” Diko said.
Despite its significant operational challenges, the committee maintains that SAPO remains a critical state entity, especially for many underserved communities across the country.
“SAPO must diversify its revenue streams and leverage its infrastructure for broader service delivery,” she said, reinforcing the Post Office’s role in enabling access to essential services.
She also addressed recent developments concerning the Post Bank, expressing concern over the reported termination of the Master Services Agreement (MSA) between the bank and the South African Social Security Agency (SASSA).
While the committee has not yet formally engaged with both state organs on the matter, Diko highlighted the need for transparency and dialogue.
“The committee has noted media reports and the unilateral declaration by SASSA of its intention to terminate the Master Services Agreement between SASSA and the Post Bank.
''The committee has further noted Post Bank’s fierce opposition to the termination of the MSA as well as the legal action the bank has initiated against SASSA in this regard,” she said.
She also emphasised that in a recent joint portfolio committee meeting with the Portfolio Committee on Social Development, there was no mention of the MSA’s termination, raising concerns about communication between the involved entities.
“We call on the Ministers to resolve this impasse and on all parties to exhaust all stipulated dispute resolution mechanisms outlined in the agreement,” Sangoni-Diko said.
Despite the turbulence, the committee praised the Post Bank’s recent progress, describing it as a “transformation story of resilience and readiness.”
Sangoni-Diko noted that the bank has emerged from years of audit disclaimers to receiving an unqualified audit opinion, returned to solvency, and even declared a dividend of R760 million to the fiscus in the last financial year.
“Now is the time for the Post Bank to be supported and strengthened,” she said.
“We must strengthen and not erode the capacity of the state to deliver on the developmental aspirations of the South African people.”
hope.ntanzi@iol.co.za
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