Post Office owes Telkom over R200m as it fights to avoid disconnection

Post Office owes Telkom over R200m as it fights to avoid disconnection

The finances of the South African Post Office are still in dire straits. 

Post office generic

The state-owned enterprise needs at least a R1.6 billion bailout from Treasury over the next two years to stay afloat.


Communications and Digital Technologies Minister Khumbudzo Ntshavheni revealed the staggering figure while answering oral questions at the National Assembly.


The economic cluster spent hours before Members of Parliament sitting at the Good Hope Chambers  on Wednesday. 


Despite reports, Ntshavheni denied soliciting close to R10 billion at a meeting behind closed doors last week.


“We requested the meeting to be closed to protect the commercial sensitive information of SAPO. SAPO competes in a market with private players who can take the opportunity to abuse that and move faster.


“SAPO has requested, and that is what Treasury is considering, R1.6 billion in funding over the two year period,” she told MPs.


Ntshavheni also moved to clear the air on the company’s debt after telecommunications giant Telkom threatened to shut off its internet and other services.


“I must clarify that the SAPO debt to Telkom is not close to R300 million, it’s R210 million to be specific. We are working with SAPO in repaying that amount.”


Meanwhile, Ntshavheni challenged SAPO’s former CEO Mark Barnes to prove he did a better job at the company’s helm.


This after Barnes levelled public criticism against SAPO, offering to o buy a portion of the group in a bid to turn the SOE around.


“Mr Mark Barnes was given R3.5 billion to turn around SAPO, he did not turn around SAPO. It’s very rich for him to say he wants to buy SAPO.


“If he was serious about turning around SAPO, we would not be sitting where we are because the problems of SAPO are coming even from the period where he was. We are not interested in the offering of Mr Mark Barnes.”


Ntshavheni assured MPs there is a plan in place to return the company to it’s former glory.


Watch Ntshavheni below: 


LISTEN TO more news Jacaranda
Jacaranda FM

Show's Stories