Cape Town – The Ministry of Communications and Digital Technologies has sourced the services of a senior counsel to advise and guide on the options available to save the South African Post Office (Sapo) from final liquidation.
This was revealed by Deputy Minister Philly Mapulane when he was responding to oral questions in the National Council of Provinces on Thursday.
“The actual position taken by the shareholder, which is the government through the ministry, regarding the provisional liquidation of Sapo, is to put measures to save the entity from liquidation.
“We have been working tirelessly with Sapo considering various options to find an optimal option within the legal prescripts and confines of the provisional liquidation to save the entity from liquidation,” he said.
Mapulane said the ministry together with Sapo has engaged various stakeholders, including the National Treasury, in considering various options.
“The services of a senior legal counsel have been sourced to provide advice and guidance on the optimal option in dealing with these matters.
“The plan is to get matters resolved before June, the final court date, so that the entity can continue to operate as a going concern.
“The department will be in a better position to make a pronouncement in due course through the minister after all legal procedural matters and consultation have been completed,” he said.
Mapulane said it was vital to assure the public of the ongoing concerted efforts to ensure that the optimal option was put in place to save the entity.
“This is to ensure that the impact of provisional liquidation on ordinary South Africans who make use of the services is mitigated against.”
He said Sapo continued to operate and to ensure that services were not affected, including the payment of social grants.
“We call on the public to remain calm while the plan is put in place to save the Post Office.”
Mapulane also said the Cabinet had been briefed on what needed to be done legally to save the organisation.
“We are looking at a number of options. There is a preferred option, which I am not at liberty (to disclose) because there are a number of sensitivities,” he said.
“There are creditors who must buy into whatever approach that will best result in them not being worse off. We are engaged in those discussions and as soon as they are concluded we will make the necessary pronouncement.”
The deputy minister said the plan was to use the bailout received from the National Treasury to partly settle the outstanding creditors, particularly medical aid fund, pension fund and the SA Revenue Service as well as fund the business to continue as a going concern, and over a period of time get on its feet and settle all creditors.
“In the fullness of time we will come back to interrogate what happened so that there can be consequence management for whatever that may have happened which is wrong.”
Asked about security of jobs at Sapo, Mapulane said it was their understanding and belief that, in saving the entity, jobs could be protected within the confines of legal prescripts and the implementation of the Post Office of Tomorrow strategy.
“The security of employment is of utmost importance, especially during this time when all efforts are made to ensure the entity is saved from liquidation,” he said.
He noted that Sapo had embarked on a voluntary severance package process.
“Over 60% of operational expenditure costs are salaries. The Post Office has been trying to get voluntary severance packages but also started the process of section 189 of the Labour Relations Act.”
Mapulane also said there was a plan to reposition and reorientate the Post Office so that it could respond to the changed market conditions.
“The Cabinet approved the Post Office of Tomorrow strategy where the Post Office will be restructured and repositioned.”
Cape Times
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