Treasury denies further bailouts for South African Post Office amid financial struggles

THE Treasury said the South African Post Office (SAPO) will not receive any bailout beyond the R381 million it received from the Unemployment Insurance Fund (UIF) Temporary Employer-Employee Relief Scheme (TERS).

- HELMO PREUSS

TERS is available for companies facing financial distress such as SAPO and Arcelor Mittal South Africa (AMSA). The R381m will be available for use over the next six months and to preserve the jobs of some 6 000 SAPO workers.

SAPO was placed in business rescue on 10 July 2023, owing creditors R8.7 billion. It currently operates 657 branches, following the closure of 366 post offices in 2023 as part of branch rationalisation. About 4 800 workers, or 43% of the workforce, were retrenched in July 2023.

SAPO is required to submit regular accounting reports and implement a detailed turnaround strategy as a condition of the TERS funding.

The Treasury, in its Estimates of National Expenditure (ENE), noted that the Department of Communications and Digital Technologies has allocated R1.8bn to SAPO for its universal service obligations to provide postal services in underserviced areas.