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The separation of the Postbank from the South African Post Office is underway and is currently at the cabinet level with only one amendment pending, said Communications and Digital Technologies Minister Stella Ndabeni-Abrahams.
On Tuesday, the Communications Minister held a press conference in which she gave an update on the institutional reforms, one of which was the separation of the Postbank from the South African Post Office (SAPO) to form an independent state bank.
Fin24 previously reported that during a Standing Committee on Appropriations briefing, Treasury officials said that SAPO had requested additional support of R4.9 billion due to the impact of Covid-19.
“SAPO is at a critical juncture. If the shareholders department does not act to restructure and reuse the entity, SAPO will collapse,” the Treasury said in its presentation a month ago.
The Post Office has also experienced a host of financial and other challenges, including criminal activity at some of its outlets. The Department, of course, remains available to assist the Post Office on its path to stabilizing its finances and ensuring its sustainability, “said Ndabeni-Abrahams.
In an effort to support the Post Office, Ndabeni-Abrahams said new board members with extensive and credible pedigree and experience in logistics, postal and banking services have been appointed to the Post Office boards and their subsidiary, Postbank.
“We have also provided timely support to the post office in its recent appointment of an experienced CFO and we stand ready to do the same as the board strives to finalize the appointment of a suitable CEO,” he said.
