No funding bailout for ailing SAPO, as National Treasury reflects on the size of the bailouts for state-owned companies over the years.
SA Post Office business rescue practitioners have said it needs a further R3.8 billion cash injection.Despite the South African Post Office ’s supposed ‘day zero’ scenario anticipated today, the financially-strung entity will not be receiving a bailout from government.
“The second option is finding savings within the department, to be able to bridge the gaps…for that, the department will have the final say, but we’re still working with them in making decisions around where and how resources can be shifted.” The minister noted that according to a document tabled earlier this year, bailouts cost government R520 billion from the 2008/9 financial year, to date.
Communications minister Solly Malatsi’s department has the tough task to turn things around at the SA Post Office. The ailing state entity, which has been under business rescue for over a year, is in dire financial straits and its once wide branch network has significantly shrunk over the years.his plans to reform the organisation, with the “consideration of privatisation scenarios as a preferential option”.
“We’ve got to make space for some partial involvement of the private sector through public-private partnerships.”The state has hundreds of SOEs spread across national and provincial government, with many still highly-dependent on government support.
Department Of Communications And Digital Technolo Medium-Term Budget Policy Statement DCDT SAPO South African Post Office Enoch Godongwana Public Private Partnerships Solly Malatsi
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