Solly Malatsi’s Post Office gamble

Communications minister Solly Malatsi has denied claims by business rescue practitioners (BRPs) for the South African Post Office that his refusal to allow them to sell assets or seek external funding has hamstrung the business rescue process.

Speaking in an episode of the TechCentral Show to be published in the coming days, Post Office co-BRP Anoosh Rooplal said restrictions in the Public Finance Management Act have hampered him and his associate, Juanito Damons, in their ability to effectively execute the rescue. But when the duo approached Malatsi for powers they would otherwise have in the rescue of a private entity, they were denied.

“There are certain constraints that have been placed on the business rescue practitioners. In a typical business rescue – and when I say ‘typical’, I mean one that is not governed by the public sector – rescue practitioners would ordinarily be free to borrow money externally and to sell assets,” said Rooplal.

Responding to a query from TechCentral, Malatsi said his rejections were part of a broader strategy to avoid making “piecemeal” sales of Post Office assets before ascertaining whether those assets could be used as part of the entity’s broader turnaround strategy.

“I have not rejected the disposal of Sapo (Post Office) assets or efforts to secure additional funding as a matter of principle. My approach has been to ensure that any such steps are properly motivated, transparent and aligned with a credible turnaround strategy,” Malatsi said in an e-mail.

“In relation to property disposals, I have asked the business rescue practitioners to pause the sale of properties temporarily pending greater clarity on Sapo’s private sector partnerships programme, so that the potential strategic use of Sapo’s property portfolio can be properly considered.”

‘Chicken-and-egg scenario’

Malatsi has on many occasions pointed to public-private partnerships as the key to the Post Office’s revival. The communications department in November 2025 issued a request for information from interested private sector entities, asking them to outline how they could partner with the Post Office to ensure sustainability.

In his interview with TechCentral, Rooplal said the partnership strategy presents a “chicken and egg” scenario for the BRPs and the Post Office’s other stakeholders. Although there were more than 90 respondents to government’s request, many of the proposals assume the state-owned enterprise’s infrastructure to be at a level where they can “just plug in and do business”. This is not the case, Rooplal said.

Read: The Post Office is out of options

Selling assets, seeking external funding or getting a R3.8-billion funding tranche from government would help revitalise the company’s physical and IT infrastructure, making it possible for third-party entities to seamlessly collaborate with it.

Malatsi warned that the very assets that could potentially be sold to raise money for infrastructure upgrades could be important to the partners wanting to use that infrastructure.

“My view is that asset sales should not proceed in a piecemeal manner without first understanding how those assets may be leveraged as part of broader commercial arrangements that could support Sapo’s recovery,” he said.

Despite putting a dampener on asset sales for the time being, Malatsi said he has requested “the necessary supporting information” for those properties that could be sold. These include valuations, offers to purchase and “other salient details of the proposed transaction”, he said.

Read: Post Office on the brink of collapse

With government funding not forthcoming and no power to either sell assets or seek external funding, Rooplal said he and Damons are left with few options but to file for the liquidation of the Post Office to avoid falling foul of their fiduciary responsibilities as outlined in chapter 6 of the Companies Act.

Not a ‘blanket refusal’

Malatsi’s perspective is less bleak.

“It would not be correct to characterise my position as a blanket refusal. Rather, I have sought to ensure that decisions of this nature are considered responsibly, on the basis of adequate information, and in a manner that protects the public interest and Sapo’s long-term viability,” said Malatsi.  – (c) 2026 NewsCentral Media