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Moneyweb reports that the SA Post Office’s (Sapo’s) joint business rescue practitioners (BRPs) are concerned about the entity’s liabilities, which reportedly totalled R12.5 billion at the end of July. They say the liabilities raise questions about the viability of the business rescue process.
Joint BRPs Anoosh Rooplal and Juanito Damons on Friday issued an update on the troubled state-owned entity’s rescue after it entered the process in July. They noted that Sapo would need to improve revenues and attain an efficient cost structure for the entity to achieve a turnaround. Yet, in their two months at the helm of Sapo, the BRPs have managed to resume contributions to medical schemes, attend to the backlog of disciplinary cases, and restore electricity supply to the Newcastle branch. Salary payments for staff have remained steady so far, however the BRPs cautioned that Sapo’s ability to continue paying salaries would depend on the entity’s cash flows and receipt of additional funding from the Department of Communications and Digital Technologies and National Treasury. With regards to medical aid scheme payments, the BRPs said they have back paid contributions from July and have committed to staying consistent with payments so all employees could gain access to benefits. The re-opening of more key branches remains a key priority for the practitioners, but doing so will have to be balanced with the costs relative to available funds.
- Read the full original of the report in the above regard by Akhona Matshoba at Moneyweb
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