The South African Post Office has been in business rescue – a form of bankruptcy protection – since July 2023. Business rescue practitioners Anoosh Rooplal and Juanito Damons have made it clear to parliament that the entity will not survive liquidation unless a R3.8-billion bailout is received soon.
With some 5 500 jobs on the line, the big question is: is the Post Office worth saving? Rooplal spoke to TechCentral’s Nathi Ndlovu and was asked that question.
Watch the interview
In this episode of the TechCentral Show, Rooplal talks about:
- The case for the bailout: The business rescue practitioners have already received R2.4-billion from government, while bailouts for the Post Office over the past decade amount to nearly R10-billion. Rooplal attempts to answer why this latest funding request is worth it.
- The current state of the Post Office: Rooplal outlines what the R2.4-billion tranche was used for and what the R3.8-billion request would do, if provided. He also details what the future state of the entity might look like and how, without much in terms of income, salaries are currently being paid.
- The need for a state-owned postal service: Even if national treasury were to agree to save the Post Office, does it have a place in a modern digital economy?
- External funding and asset sales: If the business case for the Post Office’s revival is so strong, why have the businesses rescue practitioners not sold or rationalised assets or gone to the open market for funding?
- Social grants and Post Bank: Rooplal explains what would happen to the many grant recipients processed via the Post Office should it not survive business rescue.
- Private sector partnerships: The department of communications & digital technologies in November issued a request for information seeking private sector partnership proposals. Rooplal explains the “chicken and egg” problem at the core those discussions.
- No more options: Chapter 6 of the Companies Act compels business rescue practitioners to file for liquidation if they see “no reasonable prospect” of rescue. Rooplal explains why he and his associate, Damons, are close to pulling the trigger.
Don’t miss the discussion!
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