Question NW2922 to the Minister of Telecommunications and Postal Services

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25 August 2015 - NW2922

Profile picture: Carter, Ms D

Carter, Ms D to ask the Minister of Telecommunications and Postal Services

Whether (a) his department has (i) fully investigated the viability of the SA Post Office (SAPO) considering the fact that many users have transferred their business to elsewhere and (ii) examined SAPO’s financial difficulties to ascertain whether it had any prospects of reversing its decline and (b) as a result thereof, he had decided to recommend to the Government to sell a part or the whole of the SAPO’s business before it is too late; if not, why not, in each case; if so, what are the details, in each case?

Reply:

(a)(i) Yes, an Intervention Team that worked under the supervision of the Administrator did a comprehensive diagnostic work into the difficulties / challenges faced by the South African Post Office (SAPO). The work resulted in a Turn-around plan, which has been approved by Cabinet and proposes a new business model. This Strategic Turnaround plan is being implemented.

(ii) The diagnosis undertaken paid specific attention to the financial difficulties of SAPO and proposed specific interventions to deal with these.

(b) Government is not considering selling either part or the whole of SAPO as the company still has value to offer to the citizens especially those residing in the underservice parts of the country especially the rural areas.

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