SA Post Office still facing 'day zero' unless it receives R3.8 billion bailout, MPs told

CAPE TOWN - Deputy Minister of Communications and Digital Technologies Mondli Gungubele said that the South African Post Office (SAPO) was still staring at "day zero" unless it received R3.8 billion.

The entity's business rescue practitioners also said there were a few options available to prevent the post office from shutting down.

The department and the business rescue team gave MPs an update on the cash-strapped post office’s finances in Parliament on Tuesday.

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South African Post Office business rescue practitioner, Juanito Damons, told MPs that they found the entity’s assets, like depots, in a horrible condition.

He said that the entity had 125 properties in its portfolio and many had been vandalised over time and to fix them would cost more than selling them.

"It is absolutely horrible, honourable chair, what we found in some of our depots."

Gungubele added that October was still their day zero deadline unless funding arrived.

"Last time, they said it's the end of October. I don’t see anything changing, it seems to be staying that way."

But Gungubele said that the R3.8 billion would not come arbitrarily and they were still engaging National Treasury.