SA Post Office announces the closing of 235 locations around the country. There will be further layoffs as a result of the decision to close 235 South African Post Office branches.
The Information and Observer (IOL) reports that of these post office branches, 104 are located in the Central area. Minister of Communications and Technologies Mondli Gungubele was unable to identify which of these offices would close.
Post Office in South Africa to Shut Down
The South African Post Office is getting ready to close more than 235 of its locations. This choice will result in the layoff of more workers. The Information and Observer (IOL) reports that of these post office branches, 104 are located in the Central area. Minister of Communications and Technologies Mondli Gungubele was unable to identify which of these offices would close.
Gungubele was unable to even provide an exact estimate of the number of layoffs. A business rescue process is under underway for the financially troubled public corporation. According to an IOL Gungubele report, disclosing the recommended figure before the facilitation process is finished could throw off the action plan.
In response to three parliamentary questions from DA MP Natasha Mazzone, Gungubele made the statement. IOL claims that once Sapo went into business rescue in July 2023, a rescue plan was developed and approved by the company’s creditors by December of the same year, all in a span of four months.
Anoosh Rooplal and Juanito Damons, joint business rescue practitioners entrusted with managing the rescue operations, disclosed that Sapo claimed 1,023 branches, of which 894 were active at the time and 129 were not. They also revealed that, as part of the rescue effort, R600 million of the R3.8 billion allotted had been set aside for layoff benefits, which would be distributed over a 12-month period.
Sapo’s Business Rescue Funding Was Notified to MPS
Gungubele, according to IOL, claimed that when the court accepted business rescue as a workable solution to save Sapo, the Cabinet required the allocation of R3.8 billion in funding as a requirement.
Of the 1,023 branches that Sapo had, 894 were active and 129 were dormant, he said the MPs. The organization was behind on rent and utility payments and had no money to pay landlords.
Gungubele clarified that 2 000 creditors, including statutory organizations like the SA Revenue Service and medical assistance programs in addition to employee salaries, would be paid when the R3.8 billion for the company rescue procedure was received.
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