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Home ยป Industry News ยป Godongwana welcomes Post Office business rescue decision

Godongwana welcomes Post Office business rescue decision

Communications and Digital Technologies Acting Minister, Enoch Godongwana, has welcomed a high court decision to place the South African Post Office (SAPO) under supervision and in business rescue.ย  The Gauteng Division of the High Court of South Africa, in its ruling on Monday, said the business rescue proceedings are to commence with immediate effect.

 

Godongwana further noted the appointment of Anooshkumar Rooplal and Juanito Martin Damons as joint interim business rescue practitioners in respect of the business rescue proceedings subject to approval by the Registrar of Financial Services and ratification by the majority of SAPOโ€™s creditors.

According to the Ministry of Communications and Digital Technologies, the decision of the court in support of the application brought by Minister Mondli Gungubele confirms that indeed SAPO is a strategic government asset that provides vital services throughout the country. This is especially in remote areas where SAPO is often the main link between residents and the outside world.

It added that it further uses its countrywide footprint to render such services as the distribution of social grants at its branches, distribution of medication to those in need and various national and international postal services etc.

The decision will give SAPO the much needed time and space to restructure its affairs under supervision and implement the turnaround plan to fundamentally change its business model into a solvent and viable business with broad revenue streams that leads on modern services.

โ€œThe challenge is on SAPO, the department and all stakeholders to live up to the commitments made in the application,โ€ said the acting Minister Godongwana.ย โ€“ SAnews.gov.za

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