Treasury not legally bound to fund SA Post Office’s R3.8bn recapitalisation, Parliament told

NATIONAL Treasury has no legal obligation to provide the South African Post Office (SAPO) with the R3.8 billion required to recapitalise the restructured entity, Parliament’s legal adviser has warned, as lawmakers push for an urgent meeting with Finance Minister Enoch Godongwana to lobby for the funds.

- BANELE GININDZA

Advocate Aadielah Arnold, Parliament’ legal adviser, told the Portfolio Committee on Digital Technologies that the R3.8bn cited by SAPO’s business rescue practitioners cannot be regarded as a binding commitment by Treasury under the national budget framework set out in the Constitution and the Public Finance Management Act (PFMA).

"In our view, the facts present a scenario where the commitment made can be described as a tentative, provisional, conditional or a noncommittal. So, I think it's evident that the R3.8bn will not be forthcoming or does not appear to be forthcoming,” Arnold said.