Former Sapo CEO MarkBarnes, who presided over the entity until 2019, says while its insolvency may be worse than meets the eye, letting it die would be a national tragedy. Moneyweb
The provisional liquidation of the South African Post Office leaves the door wide open for another government bailout, an analyst warns, just months after National Treasury allocated R2.4 billion in its budget for the rescue of the state-owned entity . Sapo was placed in provisional liquidation by order of the Pretoria High Court on 9 February, after years of operational and financial trouble.
Many of South Africa’s 18 million people who rely on social relief grants still collect them at the post office, which would have to be management’s first operational fix if it survives, says Barnes. “If you do let it go, it goes into the private sector, and that means we’re throwing away a commercially irreplaceable footprint … a trusted government centre that forms a bridge between the government and the people of South Africa, which is not commercially available to them otherwise.
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