Post Office now the fourth SOE in business rescue | The Citizen

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The business rescue starts immediately, according to an order of the High Court in Pretoria. Communications Minister Mondli Gungubele brought an urgent application on 30 May to place the Post Office in business rescue. SAPostOffice Read more here 👇

They did not believe that the R2.4 billion allocated in the Budget in February would be enough for the Post Office to pay its debts and their counsel also stated that the Post Office’s affairs are in such disarray that the auditor general has been unable to complete her audit for the 2022 financial year and delivered a report that is replete with concerns, criticisms and qualifications.

She allowed the Municipal Employees Pension Fund as the second applicant. The fund, one of the Post Office’s largest creditors, supported the minister in the business rescue application and there was no opposition to the intervention application.

“While emphasising the dire effect that final liquidation will have on the nation’s international responsibilities and the role that the Post Office plays in the country’s socio-economic structure, it seems as if government wants to force the court’s decision and the outcome of this application by bluntly stating that the R2.4 billion that has already been earmarked to fund the Post Office’s turnaround, will now only be available for business rescue proceedings,” she said.

One of the few things the minister and the provisional liquidators agree on is that the Post Office’s final liquidation is undesirable.

 

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