South Africa’s R3.8 billion Post Office lie

Recent claims regarding a R3.8 billion bailout for the South African Post Office (SAPO) have been refuted and slammed as misleading.

South Africa’s largest trade federation, Cosatu, announced that it is seeking urgent engagement with several ministers to address the crises threatening the collapse of the postal service.

The federation intends to meet with the Ministers of Communications and Digital Technologies, Finance, and Employment and Labour to find progressive solutions to safeguard thousands of jobs.

“We are extremely worried about reports that the R3.8 billion committed by the National Treasury has still not been received by SAPO and that only three out of six agreed trenches of payments from the UIF’s Temporary Employee Relief Scheme have been paid,” the union declared.

Cosatu argued that this funding delay makes it impossible for the Post Office to recover and risks the livelihoods of its remaining staff.

“It is very concerning that SAPO’s Business Rescue Practitioner is now said to be considering approaching the courts to liquidate SAPO,” the union noted.

“If true, this would be an absolute calamity for SAPO’s workers and their families, the customers and communities who depend upon its services.”

Cosatu further alleged that the business rescue practitioners have failed to implement a sustainable turnaround plan.

“They’ve been content to close branches and retrench thousands of workers instead, and thus further weakening the ability of SAPO to recover,” the union declared.

“The solution to stabilise and set SAPO as well as the Postbank on the path to sustainability, is not to deny it funds committed to its recovery, nor to apply for its liquidation.”

No Commitment Made to SAPO

Following Cosatu’s demands, the Chairperson of the Select Committee on Economic Development and Trade, Sonja Boshoff, dismissed the federation’s claims as “misleading.”

She clarified that the union is incorrect to suggest the National Treasury is withholding funds that were either promised or approved.

“Repeating such claims risks misleading workers and the public and creates expectations that are not supported by law or fact,” said Boshoff.

She noted that the absence of a viable turnaround plan, coupled with a prolonged business rescue process, has severely weakened SAPO’s financial and operational standing.

Boshoff emphasised that it was her duty to correct misinformation regarding the alleged bailout for an entity over which her committee has oversight.

“All stakeholders are urged to engage responsibly and accurately. Sustainable solutions cannot be built on funding assumptions that were never approved, committed, or appropriated,” she said.

“The National Treasury has been explicit in its engagements with Parliament that there exists no legally binding commitment of R3.8 billion that was ever made to SAPO.”

The R3.8 billion figure reportedly stems from assumptions and proposals within the entity’s business rescue plan rather than official government policy.

Treasury clarified that, by law, public funds can be released only after they are formally appropriated through the budget process, a step that has not occurred for the cited amount.

Both Treasury officials and legal advisers maintain that the National Treasury is under no obligation to transfer the funds.

“This reflects the Minister of Finance’s constitutional responsibility to safeguard the fiscus and ensure that all expenditure complies with legal, fiscal, and governance requirements,” added Boshoff.

According to Boshoff, only short-term relief funding has been provided through departmental mechanisms.

These payments were conditional, time-bound, and subject to strict compliance.

“These measures do not constitute, and were never intended to constitute, a R3.8 billion commitment,” Boshoff concluded.