Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News

      Trump tariffs could wreck South Africa’s vehicle manufacturing industry

      14 July 2025

      Legislative overhaul on the cards for South Africa’s ICT sector

      14 July 2025

      The 1940s visionary who imagined the Information Age

      14 July 2025

      Microsoft South Africa to get new MD as Lillian Barnard moves to regional role

      14 July 2025

      Zuckerberg used open source to scale AI – now the lock-in begins

      14 July 2025
    • World

      Grok 4 arrives with bold claims and fresh controversy

      10 July 2025

      Bitcoin pushes higher into record territory

      10 July 2025

      Cupertino vs Brussels: Apple challenges Big Tech crackdown

      7 July 2025

      Grammarly acquires e-mail start-up Superhuman

      1 July 2025

      Apple considers ditching its own AI in Siri overhaul

      1 July 2025
    • In-depth

      Siemens is battling Big Tech for AI supremacy in factories

      24 June 2025

      The algorithm will sing now: why musicians should be worried about AI

      20 June 2025

      Meta bets $72-billion on AI – and investors love it

      17 June 2025

      MultiChoice may unbundle SuperSport from DStv

      12 June 2025

      Grok promised bias-free chat. Then came the edits

      2 June 2025
    • TCS

      TCS+ | MVNX on the opportunities in South Africa’s booming MVNO market

      11 July 2025

      TCS | Connecting Saffas – Renier Lombard on The Lekker Network

      7 July 2025

      TechCentral Nexus S0E4: Takealot’s big Post Office jobs plan

      4 July 2025

      TCS | Tech, townships and tenacity: Spar’s plan to win with Spar2U

      3 July 2025

      TCS+ | First Distribution on the latest and greatest cloud technologies

      27 June 2025
    • Opinion

      In defence of equity alternatives for BEE

      30 June 2025

      E-commerce in ICT distribution: enabler or disruptor?

      30 June 2025

      South Africa pioneered drone laws a decade ago – now it must catch up

      17 June 2025

      AI and the future of ICT distribution

      16 June 2025

      Singapore soared – why can’t we? Lessons South Africa refuses to learn

      13 June 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Wipro
      • Workday
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Public sector » Is it game over for the Post Office?

    Is it game over for the Post Office?

    Despite a R2.4-billion February bailout from national treasury, the Post Office is struggling to keep its head above water.
    By Sandra Laurence12 April 2023
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    Despite a R2.4-billion February bailout from national treasury, the Post Office is struggling to keep its head above water.

    The Post Office was placed under provisional liquidation on 9 February following a successful court application by a creditor owed money for rent. Property company Bay City Trading 475 applied for a large amount of unpaid rent and two provisional liquidators were appointed by the high court in Pretoria on 23 March.

    According to Business Day (paywall), the provisional liquidators are Anton Shaban and Hlamalane Musi. Their job is to try to establish the company’s debts and oversee the sale of assets that can be salvaged in order to pay creditors.

    This is not the first time the Post Office had been placed under provisional liquidation

    This is not the first time the Post Office had been placed under provisional liquidation – it has lost money every year since 2013 and branches all over the country have been closed in an effort to cut costs. Initially, a plan to cut 6 000 jobs was announced. This was later reduced, but in its most recent financial statements – for the financial year to end-March 2022 – it owed more than R4.4-billion to creditors.

    Finance minister Enoch Godongwana allocated the Post Office R2.4-billion in bailouts in this year’s budget and last year said the entity’s expenditure was expected to decrease at an average annual rate of 4.8%, from R7-billion in 2020/2021 to R6-billion in 2024/2025. “This is mainly due to a decrease in spending on compensation of employees, from R4-billion in 2021/2022 to R2.7-billion in 2024/2025, due to the staff optimisation project, which will see the number of employees decrease from 16 275 to a projected 10 254 in 2024/2025.”

    ‘Trade as normal’

    Suzie Khumalo, a Post Office spokeswoman, said a statement would be issued this week and wouldn’t be drawn further. However, she was quoted by TimesLive as saying that the Post Office “would continue to trade as normal”.

    The Post Office’s response to Business Day suggests that it does not intend to allow a full liquidation to happen. “We have been dealing with such matters for a while now. We have been able to resolve matters between the parties. We have no reason to believe that this one would be any different.”

    But Mark Barnes, the former Post Office CEO who resigned from his position after three years over differences relating to the structure of the parastatal, said it is his understanding that it would not be possible “to trade as normal” under a provisional liquidation.

    Barnes told TechCentral that legislation ensures that one creditor is not favoured over another, and that there is soon “likely to be a queue of creditors.” He also said that the provisional liquidation is a “binary issue taking place at the highest level” and what was needed was support from national treasury.

    Former Post Office CEO Mark Barnes

    The case returns to court on 1 June and if no one has approached the court by then, the liquidation is likely to be made final.

    TechCentral was not able to reach the department of communications & digital technologies for comment despite repeated attempts.  – © 2023 NewsCentral Media

    Get TechCentral’s daily newsletter



    Mark Barnes Post Office SA Post Office Sapo
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleStage-6 is back as Eskom struggles to cope
    Next Article Meeting the storage needs of today’s demanding businesses

    Related Posts

    TechCentral Nexus S0E4: Takealot’s big Post Office jobs plan

    4 July 2025

    Takealot considering mass hiring of former Post Office staff

    3 July 2025

    Zombie SOEs haunt communications sector

    2 July 2025
    Company News

    Banking on LEO: Q-KON transforms financial services connectivity

    14 July 2025

    The future of business calling: Voys brings your landline to the cloud

    14 July 2025

    How digital twins and AI are shaping the future of security

    14 July 2025
    Opinion

    In defence of equity alternatives for BEE

    30 June 2025

    E-commerce in ICT distribution: enabler or disruptor?

    30 June 2025

    South Africa pioneered drone laws a decade ago – now it must catch up

    17 June 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2025 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.