The South African Post Office (Sapo) is officially in business rescue.
On Monday, the Pretoria High Court granted the government’s application to place the Post Office “in business rescue and under supervision”.
This makes Sapo the fourth state institution to be put into business rescue.
Judge Elmarie van der Schyff appointed Anooshkumar Rooplal and Juanito Martin Damons jointly as interim business rescue practitioners.
Mondli Gungubele, Minister of Communications and Digital Technology, brought an urgent application to prevent the Post Office from being finally liquidated.
This struggling state institution – which was provisionally liquidated in February this year – will now receive another R2.4 billion that the government earmarked as part of a so-called turnaround plan.
The provisional liquidators do not believe this amount is sufficient to save the Post Office. They also do not believe that the institution can be saved. However, they did not oppose the minister’s application.
RNews previously reported that between 2016 and 2019 the government had already provided the Post Office with more than R7.3 billion in bailouts.
Van der Schyff said in her ruling on Monday that the cabinet not only undertook to provide Sapo with the mentioned R2.4 billion, but also indicated that the cabinet would consider Sapo’s application for an additional R3.8 billion in the October budget grant.