SA Post Office asks for bailout as cash reserves run low

CAPE TOWN - The South African Post Office (SAPO) is still at risk of going bust unless it receives an urgent cash injection. 

The entity told Parliament's Communications and Digital Technologies portfolio committee that it has just enough cash to last until October before it reaches what it calls 'day zero'. 

However, the committee was not happy about being alerted to the looming 'day zero' at the last minute and wanted a clearer plan. 

SAPO was placed under business rescue in July 2023. 

Cabinet had opted for business rescue, which has seen a slight improvement in performance.

READ: SAPO tells MPs it is facing 'day zero', warns of liquidation unless it gets cash injection 

However, acting CEO Fathima Gany said they’re still in urgent need of funds. 

"Based on the latest financial projections, at the current run rate and with no further capital injection by the fiscus, SAPO will only have cash reserves up to October 2024," said Gany.

Committee chairperson Khusela Diko said they were not satisfied with the report. 

"But the first time the issue of day zero is raised in this committee is a month before it’s supposed to happen. We have not been given a sense of what is the plan," said Diko.

The Post Office is expected to return to the committee soon to give an indication of its plans beyond 'day zero'.