Diko calls for SAPO's business rescue process to wrap up
Communications and digital techonolgies committee chairperson, Khusela Diko said the rescue team was appointed to ensure the "future proofing" of the struggling entity by helping it modernise, but there’s still no progress or a clear exit strategy.
The South African Post Office. Picture: Ashraf Hendricks/GroundUp
CAPE TOWN - The communications and digital technologies committee chairperson, Khusela Diko, said that the post office's business rescue process must conclude and can't continue forever.
She said the rescue team was appointed to ensure the "future-proofing" of the struggling entity by helping it modernise, but there’s still no progress or a clear exit strategy.
Diko was addressing an economic cluster briefing in Parliament on Thursday.
The South African Post Office was placed under business rescue in 2023 by the previous minister as the entity faced financial instability as a result of unsustainable costs.
This was to help the entity deal with operational inefficiencies and failure to modernise.
But there’s still no sign of when the rescue team will conclude its work, with Diko saying they should wrap up.
"The committee will be engaging with the minister. We want to seek to understand the exit strategy of the business rescue practitioners. They can’t be there forever."
She said they should have produced a sustainable plan for the post office.
"We remain unconvinced that the BRPs have done enough to secure strategic and meaningful partnerships in this regard."
Diko said they would be meeting with interested sectors to find potential "strategic partners" for the post office for the executive's consideration.