The South African Post Office (Sapo) risks having its services crippled due to an outstanding bill of R269 million, it owes Telkom, who has threatened to cut the state company off, the Sunday Times reported.
The government has been forced to step in as Sapo offers critical services including the payment of grants, and the renewal of vehicle registrations,Communications minister Khumbudzo Ntshavheni’s department has intervened as it looks to raise the necessary funds to bail the company out.
According to the report, the Post Office said it needed the bailout to help with its immediate cash flow requirements and to settle its Post Bank debt.R1.8 billion – cash-flow deficit for nine months while revised strategy is implementedThe opposition Democratic Alliance has previously warned that the government will need to seek private investors for the South African Post Office, or risk closing it for good.
Meanwhile, former chief executive of the embattled mail carrier, Mark Barnes, has offered to buy a portion of the group in an attempt to help return it to its former glory.
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