Question NW4061 to the Minister of Telecommunications and Postal Services
08 December 2015 - NW4061
Madisha, Mr WM to ask the Minister of Telecommunications and Postal Services
Whether his department is now ready to (a) produce the draft White Paper on National Integrated Information Communication Technology Policy, (b) gazette the National e-Strategy and (c) make a statement on the continued financial viability of the SA Post Office without assistance from the Government; if not, why not in each case; if so, what are the relevant details in each case?
Reply:
a) The National Integrated ICT Policy White Paper will be tabled in Cabinet for approval by the end of the financial year.
b) The Department intends to gazette the draft National e-Strategy before the end of the financial year.
c) SAPO currently needs financial assistance from Government.
SAPO has been given a guarantee of R1.67 billion in the past financial year and R2.5 billion in the current financial year. The Post Office uses these guarantees to raise cash from the financial markets.
Moving forward SAPO's Strategic Turnaround Plan (STP) has been developed and approved by Cabinet. Its effective implementation requires effective leadership and funding. As part of supporting SAPO's turnaround, the Department has recognised the need to stabilise SAPO's leadership. The board and the Group CEO have been appointed. To date, there has been more focus on the implementation of cost cutting initiatives. There is currently a need to implement revenue generation initiatives and these require funding. Effective implementation of the STP will enable the entity to be economically viable.