Government ‘forces’ Post Office into business rescue

The SA Post Office has been saved from liquidation after an application to the high court by the minister of communications and digital technologies to halt liquidation proceedings and rather put the ailing enterprise into business rescue was granted. This means taxpayers are likely to be on the hook for billions more. Read: SA Government looks into post office’s financial woes The court’s take on the matter is telling.

“The minister’s counsel emphasised that any solution that solely focuses on a compromise with SAPO’s creditors, without addressing SAPO’s ability to increase its service offering and decrease costs, is not viable as it does not resolve the structural problems SAPO faces,” according to Van der Schyff’s ruling.

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Postbank stands to lose R3.5bn as Post Office pleads for business rescueFate of Post Office raises question over plan to be a fully fledged bank
Source: BDliveSA - 🏆 12. / 63 Read more »

Post Office snatched out of liquidation and into business rescueThe North Gauteng High Court has ruled on the government’s application to take the struggling South African Post Office out of provisional liquidation.
Source: mybroadband - 🏆 11. / 67 Read more »

Post Office now the fourth SOE in business rescue | The CitizenThe 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 👇
Source: TheCitizen_News - 🏆 6. / 75 Read more »

Post Office business rescue puts 7,000 jobs on the lineCuts could save more than R1.3bn in annual salaries
Source: BDliveSA - 🏆 12. / 63 Read more »