SAPO modernisation put on ice after not receiving R3.8bn bailout, say its business rescuers
They also said to avoid 'day zero' - a scenario where the entity's coffers would be empty, adding that they need even just R1 billion to stay afloat.
The South African Post Office. Picture: Ashraf Hendricks/GroundUp
CAPE TOWN - The South African Post Office (SAPO) business rescue team says investing in the modernisation of the entity is on hold because it hasn't received a R3.8 billion bailout.
They also said to avoid "day zero" - a scenario where the entity's coffers would be empty, adding that they need even just R1 billion to stay afloat.
The department and the business rescue practitioners briefed Parliament on Tuesday, on the cash-strapped entity and whether it would survive beyond October.
The SAPO's business rescue practitioners told Parliament that they had made some improvements, such as reducing annual employee costs by R1.2 billion.
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This included the retrenchment of over 4,000 employees as well as the closure of several underperforming branches.
But business rescue practitioner Anoosh Rooplal said they still need a cash injection to stay afloat.
"We are highlighting that the R3.8 billion is critical for us to complete the remaining aspects of our business rescue plan. As we stand today, we are on track with what we needed to implement."
The business rescue team added that protecting the current revenue base was paramount, and other possible interventions include directing government to use its services exclusively and issuing licences to the private sector.