Communications Dept seriously considering privatising SAPO, says Malatsi

CAPE TOWN - Communications Minister Solly Malatsi said that his department was seriously considering the privatiation of the South African Post Office (SAPO).

On Wednesday, the minister announced that he had asked for the support of National Treasury.

He wants to form a task team that will pursue private financial and operational partners for the struggling post office.

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Malatsi said that privatisation scenarios would be considered as the preferred option to further funding from the fiscus.

Minister Malatsi's approach to National Treasury to support the process comes after the post office said it required R3.8 billion by October or risk going into liquidation.

He said that the process would also include exploring the best way to involve private partners.

Malatsi said that the goal was to modernise the entity’s operations, drive innovation, and increase its competitiveness.

"This will enable serious consideration of privatisation scenarios as a preferential option to further funding from the fiscus. In addition, we will work to ensure that there is accountability for failure to meet previous conditions that were imposed for the financial support the post office received from the fiscus."

Malatsi said that it was clear that any allocation of previously committed funds to the post office would be based on a revised business plan by the business rescue practitioners that meets Treasury's expectations.