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SAPO urgently need private-sector funding to avoid collapsing, says Malatsi

The Democratic Alliance (DA) says it is concern that South Africa Post (SAPO) is crushing and unable to perform its vital role of providing reliable public services.

DA Shadow Communications Minister, Solly Malatsi said it has become clear that SAPO urgently needs investment from the private sector to save it from collapsing beyond resuscitation.

“While the ANC government has strong opposition to any private takeover of state entities, it can no longer hold the post with sentimentality,” Malatsi said.

SAPO reported a loss of R591 million for the second quarter of the 2021/22 financial year when it presented its financial statements to the Parliamentary Potfolio Committee of Digital Communications.

In addition, it owes the Postbank R2.2 billion. Despite further concerns, Malatsi said that if the number of crimes increased from 569 to 1818, it would be mostly theft and burglary, leading to a loss of 62 million R.

This follows an answer to the DA’s parliamentary question, which revealed that the Post owes its suppliers about half a billion rand.

“Although the ANC government has a healthy opposition to any takeover of state entities, it cannot continue to hold on to the post due to sentimentality,” said Malatsi.

Malatsi said the DA would continue to use all parliamentary resources to support the partial sale of  Post Office to the private sector to save millions of rand and return the entity to efficiency.

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