The South African Post Office (Sapo) can commence with business rescue proceedings with immediate effect, bringing an immediate halt to the provisional liquidation proceedings, the North Gauteng High Court in Pretoria ruled.
Acting Minister of Communications and Digital Technologies, Enoch Godongwana on Tuesday welcomed the decision — which avoids the state-owned enterprise (SOE) being forced to close its doors permanently — and said it would give Sapo time and space to restructure its affairs.
“The decision of the court in support of the application brought by Minister Mondli Gungubele confirms that, indeed, Sapo is a strategic government asset that provides vital services throughout the country, especially in remote areas where Sapo is often the main link between residents and the outside world,” Godongwana’s office said.
It added that the Sapo uses its countrywide footprint to render services such as the distribution of social grants at its branches; distribution of medication to those in need, various national and international postal services, and so on.
He said that this decision would not only give the Sapo the much needed time and space to restructure its affairs under supervision, but to also implement the turnaround plan to fundamentally change its business model into a solvent and viable business with broad revenue streams that leads on modern services.
“The challenge is on Sapo, the Department and all stakeholders to live up to the commitments made in the application,” he said.
Godongwana also noted the appointment of Anooshkumar Rooplal and Juanito Martin Damons as joint interim business rescue practitioners in respect of the business rescue proceedings, subject to approval by the Registrar of Financial Services and ratification by the majority of Sapo’s creditors.
IOL