Post Office faces possible liquidation threat

Communications and Digital Technologies Minister Solly Malatsi has received a letter from the South African Post Office (Sapo) business rescue practitioners (BRPs) expressing their intention to file for liquidation. Malatsi said in a statement that the BRPs sent him the letter on Friday afternoon. The minister, however, said in his view, any talk of liquidation is premature at this stage.

He said it was premature, given the extensive ongoing conversation within government, particularly between the department and National Treasury, about the situation at Sapo. Malatsi said the engagements focus on finding a way forward that balances the urgency of the Post Office’s situation with the welfare of its staff. They also aim to ensure the responsible use of limited public funding.

Before the 2026 Budget Speech, Sapo requested R3.8 billion to exit business rescue, but Treasury did not allocate any funds. Instead, the Post Office would receive funds from the department of communications and digital technologies, which allocated R700 million for its universal service obligations to provide postal services in underserved areas. Earlier on Friday afternoon, the minister and the BRPs were scheduled to present the Sapo future sustainability strategy.

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They were also to present the BRP exit timelines to the portfolio committee on communications and digital technologies. However, the minister asked them to postpone the presentation because unresolved allocation issues remained, with the R700 million mentioned in the Budget Speech being the main concern. Malatsi said that Treasury had not yet formally allocated or clarified the use among the Post Office, SABC, and other entities.

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