Mondli Gungubele refuses to shut down the SA Post Office

Communications Minister Mondli Gungubele said it would be unthinkable to do away with the South African Post Office (Sapo).

He informed Parliament on Tuesday of the government’s plan to apply for business rescue next month, in an attempt to stave off liquidation.

Sapo has been under provisional liquidation since February, following a successful application from two creditors.

But Gungubele believes there are a number of alternatives to turn around the ailing entity.

Sapo has more than R8 billion in liabilities, while only generating annual revenue of around R2 billion.

The wage bill for 11,000 employees accounts for 70% of all expenditure.

The communications portfolio committee heard that a R2.4 billion lifeline that National Treasury allocated in the February budget was not yet been disbursed.

Gungubele said the entity must be saved at all costs.

“We talk about an institution that is one of the rare options for disadvantaged people in far-flung areas. So the issue of allowing Sapo to go under, it’s agreed, it’s a no-no.”

Gungubele said if the post office were to be liquidated, more than 700 small businesses would be affected.

The Communications Department said it’s confident in the business rescue plan that it will put before the High Court on the 4th of July.

-EWN

In other news – PICS: MaMkhize shows off her dream jet

As always with her inspirational posts, South African reality TV star, actress, and businesswoman MaMkhize aka Shauwn Mkhize has this time taken it to extreme heights with her dreams, showing off what she could buy in the future if all things go well, and it nothing other than, a jet which has left many inspired.

The luxurious-looking blue jet is richly built and has some Arabic inscriptions on it. Shauwn says she is excited about the dream, but friends like Somizi Mhlongo claim the jet might be a reality already. Learn More