South African Post Office's (SAPO) Turnaround Strategy Raises More Questions Than Answers, Says Committee Chair

Zawya

20-06-2025

The Chairperson of the Select Committee on Economic Development and Trade, Ms Sonja Boshoff, has expressed concern regarding the work of the business rescue practitioners (BRPs) on the South African Post Office's (SAPO) turnaround strategy.
The BRPs presented the plan on Wednesday, stating that progress Is being made and that, in the long term, their vision is to transform the Post Office into an e-commerce hub and a multipurpose service centre.
However, Ms Boshoff said troubling realities remain. Chief among these is the retrenchment of over 4 000 employees, with no clarity as to whether further retrenchments have been halted.
'Service delivery at the Post Office has significantly deteriorated, and the entity continues to survive on state bailouts. Public confidence has been completely eroded, and the long-term sustainability of SAPO remains in serious jeopardy,' Ms Boshoff said.
She further raised concern about the request to present substantial portions of the turnaround strategy in a closed session. 'SAPO is a state-owned enterprise funded by public money. The use of in-camera briefings must remain the exception, not the rule. Such briefings should only be permitted in instances of legitimate commercial sensitivity – not as a tool to shield institutional failures from public scrutiny and parliamentary oversight.'
The strategy, as presented, offers limited detail in terms of innovation and measurable outcomes. While it references digitisation, a revised branch footprint, and hybrid financing models, these aspects remain vague, lacking clear implementation timelines and funding clarity.
Ms Boshoff said it is troubling that no investor has yet shown serious interest in supporting the turnaround of the Post Office. 'Meanwhile, key questions remain unanswered:
How many of the retrenched employees have actually received support through the TERS fund?
What efforts have been made to engage the private sector in restoring core service functions?
On what basis is SAPO still classified as a 'strategic national asset' while continuing to rely on repeated state bailouts?
How will the proposed hybrid funding model work in practice, and who will ultimately bear the financial risk?'
'It is imperative that public institutions – particularly those under business rescue and funded by taxpayers – operate with transparency, accountability, and defined performance indicators. A turnaround plan cannot rely on slogans or structural tinkering. It must restore credibility, modernise operations and rebuild trust with the South African public who depend on these services.'
Ms Boshoff emphasised that as the committee continues its oversight work, it will insist on greater clarity, stronger accountability and full transparency from all parties involved in the business rescue process.
'The relevance of the Post Office in the broader communications and logistics sector is fast diminishing. This can only be reversed through genuine diversification of its service offering and complete modernisation of its operations,' she concluded.
Distributed by APO Group on behalf of Republic of South Africa: The Parliament.