Latest news with #SouthAfricanPostOffice
Eyewitness News
6 days ago
- Business
- Eyewitness News
Business rescue practitioners tells Parliament task to save struggling Post Office a success
CAPE TOWN - The South African Post Office (SAPO)'s business rescue practitioners have told Parliament their task to save the struggling entity has been a success. They told Parliament on Wednesday that the South African Post Office has seen the first positive balance sheet with a net asset value of R1 billion - the first since 2012. But the turnaround has come at a huge cost, with more than 4,000 employees retrenched and hundreds of branches closed, affecting poor and rural communities. The Post Office was placed under provisional liquidation in February 2023, and a few months later, Anoosh Rooplal and Juanito Damons were appointed as the joint business rescue practitioners. They told the communications and digital technologies committee that they've reached a point where they can start planning their exit. Rooplal said the process has yielded a lot of positive results. "This certainly has been a complex business rescue process; it hasn't been easy, but nonetheless, much progress has been made since our appointment." He said the entity has also resolved its debt problem, which amounted to billions. "Effectively, we're handing back an entity, a Post Office… that's virtually debt free." The rescue team told the committee that the Post Office still needs a cash boost after being denied a R3.8 billion bailout by Treasury in 2024. ALSO READ: Mashatile says govt not ready to let go of cash-strapped Post Office yet
Eyewitness News
7 days ago
- Business
- Eyewitness News
Business rescue practitioners tell MPs they've turned SAPO around
CAPE TOWN - The South African Post Office's business rescue practitioners say they've managed to turn around the ailing entity. The team of rescue practitioners is now preparing to exit the business rescue process and hand control of the entity back to management after almost three years. The rescue team briefed Parliament's communications and digital technologies committee on the finalisation of the rescue process, which saw over 4,000 retrenchments and the closure of hundreds of branches. The business rescue practitioners have previously come under fire from the committee, which said that progress was not evident over the last two years. The practitioners were also criticised in April for failing to provide the committee with an update in over four months. But on Wednesday, Fathima Gany, SAPO acting group CEO, presented a positive outlook, saying that they were in the best shape since 2012. "This resulted in the strengthening of the balance sheet and a positive net asset value of R1 billion at the end of March. This was the first time since 2012 that SAPO had a positive net asset value, so you see the benefits that you gain from a business rescue process." In terms of the status of the business rescue exit process, the team said they were in discussions with the department and were preparing a court application to terminate the business rescue proceedings.
IOL News
7 days ago
- Business
- IOL News
Business rescue practitioners prepare to file court papers to exit Post Office
Business rescue practitioners say they have informed the Department of Communications and Digital Technologies of the pending court application to terminate the business rescue at the South African Post Office. Image: Independent Newspapers Archives The business rescue practitioners are preparing to file papers with the High Court as part of the exit strategy from the South African Post Office (SAPO). This was revealed by co-business rescue practitioner Anoosh Roopal, along with his co-business rescue practitioner Juanito Damons, who briefed the Communications and Digital Technologies Portfolio Committee on Wednesday. 'We are in discussions with the department around the business rescue having to end and business rescue practitioners having to leave,' Roopal said. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ SAPO was placed under provisional liquidation in February 2023 and later on business rescue in July 2023 after the board of directors was dismissed two months earlier. Upon their appointment, Roopal and Damons developed a business rescue plan that was approved by the creditors and then assumed management control of the business. Roopal said they were now in discussions with the Department of Communications and Digital Technologies and preparing a court application to terminate the business rescue process. This takes place as the financial plan to ensure SAPO remained a going concern was being finalised amid moves to secure payment of R509 million of statutory and payroll creditors owed to the South African Revenue Service (SARS) and medical aid schemes. 'Despite the R3.8 billion not being provided, the business rescue practitioners and the department are in discussions to develop an alternative plan to pay the remaining 18-cent creditors,' he said. Damons told the committee that they had already consulted their attorneys about the pending application, and the department was aware that they were preparing an application. 'We will ask the court to terminate the business rescue, and we would also ask for consent so that Anoosh and I can file with the Companies and Intellectual Property Commission a notice of substantial implementation.' Damons said the application comes at a good time, as there was a specialised court in Gauteng that dealt with insolvency and business restructuring. 'To get to that court, it will take us about three to four weeks if we go on a semi-urgent basis, for example,' he said. Court papers will be drafted next week, and engagements with the department and the unions will take place to make sure all are on the same wavelength. Damons said that when a business enters business rescue, it has to show that the company does not have the financial ability to cover its operational expenses when they become due and payable. 'At SAPO, at least that does not give us sleepless nights, we have enough funding from June and the ensuing six months. SAPO will be able to pay its operational expenses next six months.' Roopal said SAPO now has a turnaround strategy in line with its fulfillment of the strategic objectives at the entity. 'What we did was the turnaround strategy. We are quite comfortable that the Post Office has been equipped with a strategy that is viable. All of this depends on funding,' he told the committee. He also said they were looking together with the Department of Communications and Digital Technologies to find an alternative to pay about R509m owed to statutory bodies such as SARS and medical aids. 'That will discharge the rescue plan and hand over the business back to the shareholder,' said Roopal. Damons said the department has asked them to negotiate with the creditors owed R509m in statutory and payroll deductions. 'We started talking to these creditors about possible deferment of payment. The department asked us to have a discussion around deferring these payments until 31 March 2026. We reached out, and we have not finalised anything.' However, Damons said there was a lot of work left in terms of the exit strategy. 'We don't want to be irresponsible by leaving SAPO and finding they are back in this situation, and there is another application looming. 'Exiting business rescue would mean giving up the moratorium that is in place that protects SAPO from any legal proceedings; to start proceedings must get consent of business practitioners before approaching the court.'
IOL News
19-05-2025
- Business
- IOL News
UIF's R381 million deal with SA Post Office aims to preserve jobs as unions call for long-term solutions
The South African Post Office (SAPO) has entered into a partnership with the Unemployment Insurance Fund. Image: Independent Newspapers Archives The Unemployment Insurance Fund (UIF) has entered into a multi-million rand deal with the South African Post Office (SAPO) that could help stave off the immediate loss of thousands of jobs at the state-owned entity. Through the Temporary Employer-Employee Relief Scheme (TERS), the UIF will inject over R381 million into SAPO over a six-month period. While the move has been welcomed by some labour unions, an economist is doubtful that it will have any significant long-term impact on improving the fortunes of the Post Office. Employment and Labour Minister Nomakhosazana Meth said the implementation of the signed agreement between SAPO and the UIF was aimed at preserving nearly 6,000 jobs and was a 'bold and necessary step to protect workers and restore confidence in public institutions.' Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. 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Next Stay Close ✕ The UIF and SAPO have formally entered into a Memorandum of Agreement (MOA), marking the establishment of a strategic partnership between the two entities. 'The TERS programme is not just a financial mechanism; it is a strategic tool to stabilise employment, support economic recovery, and ensure that no worker is left behind,' Meth said. The minister explained that the funding will be disbursed in monthly tranches through a dedicated TERS bank account, with strict governance, auditing, and compliance measures in place. SAPO is required to submit regular reports, maintain transparent accounting records, and implement a detailed turnaround strategy. Earlier this month, the chairperson of the Portfolio Committee on Communications and Digital Technologies, Khusela Diko, described the approval of six months of income support for the Post Office as 'a much-needed lifeline that the state is both morally and duty-bound to extend.' According to reports, this latest round of income support brings the total amount of government bailouts for SAPO to approximately R9.8 billion since 2014. Zwelinzima Vavi of the South African Federation of Trade Unions (Saftu) said that while the trade union federation supported the funding move, it was a short-term measure. "We need a permanent solution.' He stated that they have written to the president about the matter and how it could be better handled but have not heard back. In the letter, Saftu argued that SAPO has improved and should be provided with more substantial support from the government. 'Since entering business rescue, SAPO has registered progress. Between June 2023 and June 2024, SAPO has turned its net asset value from a negative R7.9 billion to R840 million, bringing it into solvency. Furthermore, SAPO has since seen operations improve — reducing backlogs in its mail centre and completing data centre migration. "However, despite these recorded partial successes, the Treasury appears to have turned against the government's commitment to save this vital service to the poor with an additional R3.8 billion to complete the business rescue process.' Vavi said Saftu believed that SAPO has a Universal Service Obligation mandate; therefore, it must be saved and retained in public hands. If its liquidation were a reality, the consequences would be devastating for the working class, particularly those in rural areas, he concluded. The Congress of South African Trade Unions (Cosatu) also welcomed the agreement. It explained that the funds would cover 75% of the wages of SAPO's 6,027 employees over the next six months while the entity undertakes its turnaround plans. 'While this relief comes after much anguish and extreme hardship imposed on SAPO's staff by its management, it will provide badly needed comfort. It is critical that SAPO be given the full support it needs to effect its turnaround and ensure that it is firmly set on a path to recovery and sustainability,' said the trade union federation. Cosatu added that the remaining balance of the previously committed R3.8 billion injection from the National Treasury also must be provided to SAPO to enable it to settle debts and outstanding payments. 'As provided for in the SAPO Amendment Act, the Post Office's turnaround plans need to include, with the support of key departments, the establishment of a one-stop shop where citizens can apply for a variety of government services, e.g., identity documents, social grants, educational or SMME financing, etc. Equally critical is SAPO's entry into the lucrative courier sector, as relying upon its historic business model is clearly not sustainable given the rapid advent of the fourth industrial revolution. 'The current challenges hindering the turnaround of the Postbank also need to be tackled, as its successful rollout as a state bank targeting historically redlined communities will be a further boost to SAPO given their symbiotic relationship and shared infrastructure. The government must lead from the front and utilise SAPO and the Postbank as their service providers for postal and courier services, rolling out civic, social grant, and other services to the public, as well as banking needs. This would provide SAPO and Postbank with the badly needed liquidity they require to survive and thrive,' it concluded. However, economist Dawie Roodt is not convinced of SAPO's continued survival. 'The UIF is allowed to invest its surplus funds, but I doubt they are allowed to take this kind of risk. This money will not change anything; it will go to salaries and will help to kick the can down the road for a few months. We should be honest that the Post Office is dead; it is so far behind on its debt, it's bankrupt. If there is something still left, they should sell it,' said Roodt. THE MERCURY
The Citizen
19-05-2025
- Politics
- The Citizen
Top 10 stories of the day: Mayfair fire kills 4 children
Here's your daily news update for Monday, 19 May 2025: An easy-to-read selection of our top stories. In the news today, the Mayfair community in Johannesburg is in mourning after four children, under the age of two years old, tragically died in a house fire on Monday morning. Meanwhile, South Africa's delegation to the United States is en route to its most high-profile diplomatic engagement in recent memory, and the members have had things to say about SA–USA relations in 2025. Furthermore, almost 6 000 South African Post Office (Sapo) jobs will be saved via another funding injection. Weather tomorrow: 20 May 2025 Disruptive rain and damaging winds are forecast for parts of the Western Cape, with officials warning of flooding and travel disruptions. Full weather forecast here. Stay up to date with The Citizen – More News, Your Way. House fire claims lives of four young children in Mayfair The Mayfair community in Johannesburg is in mourning after four children, under the age of two years old, tragically died in a house fire on Monday morning. The City of Johannesburg Emergency Management Services (EMS) responded to a house on fire near 8th Avenue and West Street at around 11am. Picture: Supplied. EMS spokesperson Robert Mulaudzi said that upon arrival, the firefighters found the house on fire, and they started firefighting operations. 'While conducting a search and rescue operation, four bodies of young kids ranging from two years and below were recovered. Unfortunately, they were confirmed dead on the scene by Gauteng EMS paramedics,' Mulaudzi said. CONTINUE READING: House fire claims lives of four young children in Mayfair What those on the plane to Washington said prior to Trump-Ramaphosa showdown South Africa's delegation to the United States is in transit en route to its most high-profile diplomatic engagement in recent memory. President Cyril Ramaphosa is leading a team of four ministers this week for bilateral discussions with the Trump administration. President Cyril Ramaphosa in the Oval Office in 2022. Picture: AFP / Saul Loeb The president is set to meet his US counterpart on Wednesday in Washington, and the nation is eager to see how the heads of state's contrasting personalities mesh. The delegation consists of Minister of International Relations Ronald Lamola, Agriculture Minister John Steenhuisen, Trade and Industry Minister Parks Tau, and Minister in the Presidency Khumbudzo Ntshavheni. CONTINUE READING: What those on the plane to Washington said prior to Trump-Ramaphosa showdown More millions to save jobs at SA Post Office Almost 6 000 South African Post Office (Sapo) jobs will be saved via another funding injection. Sapo and the Unemployment Insurance Fund (UIF) agreed on a deal to fund employee salaries while the government works to restore the postal service's fortunes. Picture: The Citizen / Michel Bega The agreement between the two government entities will see the return of the Temporary Employer-Employee Relief Scheme (Ters) used during the 2020 global health pandemic. The Ters scheme will inject R381 million into the post office over the next six months to assist 5 956 employees. CONTINUE READING: More millions to save jobs at SA Post Office Chiefs coach Nabi – 'This news is bad for me' Kaizer Chiefs head coach Nasreddine Nabi has denied that he is set to be sacked at the end of this season. A report in the Sunday Times on May 11 claimed Nabi was going to be dismissed, even after winning the Nedbank Cup. Nasreddine Nabi has denied he is set to be fired by Kaizer Chiefs. Picture: Backpagepix 'This news came from journalists, not from the club. Why all the time is it 'Nabi, Nabi, Nabi,' for what? All of Africa has been calling me to come coach them, thinking I'm a free agent,' Nabi told journalists on Saturday, after Amakhosi's 1-1 Betway Premiership draw with Sekhukhune United at the Peter Mokaba Stadium in Polokwane. CONTINUE READING: Chiefs coach Nabi – 'This news is bad for me' Will Ramaphosa testify in Phala Phala trial? NPA clears the air At least 22 witnesses are lined up to testify in the Phala Phala trial, the National Prosecuting Authority (NPA) says. Imanuwela David, Ndilinasho Joseph and Froliana Joseph appeared in the Modimolle Magistrate's Court on Monday in connection with the theft $580 000 (about R10.4 million) at President Cyril Ramaphosa's farm in February 2020. The entrance of President Cyril Ramaphosa's Phala Phala game farm in Limpopo. Picture: NPA Limpopo spokesperson Mashudu Malabi-Dzhangi said the 22 witnesses lined up for the trial showed that the state had a strong case against the three. However, the president will not be among the witnesses. 'We can get someone from the farm. It could be a manager or administrator to be part of the trial, not the president,' Malabi-Dzhangi told the SABC. CONTINUE READING: Will Ramaphosa testify in Phala Phala trial? NPA clears the air Here are five more stories of the day: Yesterday's News recap READ HERE: Top 10 stories of the day: Omotoso deported | ANCWL deputy president dies | SANDF troops in DRC
