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SA Post Office announces closure of 235 branches nationwide

About 235 South African Post office branches are set to be closed after a conclusion of the section 189 process conducted by the Commission for Conciliation, Mediation and Arbitration (CCMA).

Post Office to close its doors

The South African Post Office prepares to close over 235 of its branches across South Africa.

This decision will lead to more employees being retrenched.

According to the IOL, among these post office branches there are 104 in the Central region which the Communications and Technologies minister Mondli Gungubele could not specify which branches would be closed.

Gungubele could not even give the exact number of people that would be retrenched.

The struggling public entity is currently undergoing a business rescue process.

Reported by IOL Gungubele, stated that revealing the suggested figure before completing the facilitation process could disrupt the planned course of action.

Gungubele made the remarks in response to three parliamentary questions from DA MP Natasha Mazzone.

According to IOL,Sapo entered into business rescue in July 2023, and within four months, a rescue plan was formulated and endorsed by Sapo’s creditors by December of the same year.

Joint business rescue practitioners Anoosh Rooplal and Juanito Damons, tasked with overseeing the rescue efforts, revealed that Sapo boasted a total of 1,023 branches, with 894 currently operational and 129 inactive.

They further disclosed earmarking R600 million from the allocated R3.8 billion for retrenchment payouts to be disbursed over 12 months as part of the rescue process.

MPs informed of Sapo’s business rescue funding

According to IOL Gungubele stated that the Cabinet mandated the provision of R3.8 billion in funding as a prerequisite when the court approved business rescue as a viable option to salvage Sapo.

He told the MPs that Sapo had 1 023 branches, of which 894 were active and 129 inactive.

The entity had no money to pay landlords and was in arrears in payment for rent and utilities.

Gungubele explained that when the R3.8bn was received for the business rescue process, they would pay 2 000 creditors, including statutory bodies such as the SA Revenue Service and medical aid schemes as well as the employee salaries.

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