Post Office’s survival is crucial: Gungubele

Communications and Digital Technologies Minister Mondli Gungubele says that the South African Post Office needs to survive as it plays a crucial role in the economy. He emphasized the importance of the state-owned company as a crucial government service platform that caters to millions of citizens and cannot afford to cease its operations.

The Minister has assured the public that all necessary steps will be taken to ensure continuous provision of social services, timely grant payments, efficient workforce and harmonious negotiations with SA Post Office’s creditors towards favourable outcomes.

“Our concern is that the Post Office must survive for a number of reasons, so that’s where we are at the moment,” says Gungubele.

Gungubele has reiterated that there’s a business strategy that is supported by the Cabinet and funded by the National Treasury to aid the entity. The Post Office has received over R2 billion bailout from government.

But there’s no doubt that the entity will need much more assistance from the shareholder, a notion that Minister Gungubele cannot dispute. However, he’s emphasised that any capital injection will come with strict conditions.

“With a viable business case going forward, it must be possible to assist the Post Office, the underlying reasons that have led to provisional liquidation,” Gungubele elaborates.