4 000 jobs gone, no plan in sight! Post Office rescue strategy torched in Parliament

Cape Town – The South African Post Office’s (SAPO) latest turnaround strategy has drawn sharp criticism from Parliament, with the Chairperson of the Select Committee on Economic Development and Trade, Sonja Boshoff, warning that the plan lacks clarity, transparency and measurable outcomes.

Speaking after a briefing by business rescue practitioners (BRPs) to Parliament on Wednesday, Boshoff said the presentation raised more questions than answers.

Although the BRPs indicated that progress is being made and that the long-term vision is to transform SAPO into an e-commerce hub and multipurpose service centre, Boshoff said key concerns remained unaddressed.

“Service delivery at the Post Office has significantly deteriorated, and the entity continues to survive on state bailouts. Public confidence has been completely eroded, and the long-term sustainability of SAPO remains in serious jeopardy,” Boshoff said.

One of the committee’s major concerns is the retrenchment of over 4 000 employees, with no indication of whether further job cuts are planned. Boshoff also criticised the BRPs’ request to present parts of the strategy behind closed doors, arguing that transparency must be prioritised in publicly funded institutions.

Series of unanswered questions

“SAPO is a state-owned enterprise funded by public money. The use of in-camera briefings must remain the exception, not the rule,” she said. “Such briefings should only be permitted in instances of legitimate commercial sensitivity – not as a tool to shield institutional failures from public scrutiny and parliamentary oversight.”

The committee found the strategy vague, with little detail on digitisation, revised branch networks or the proposed hybrid funding model. Boshoff noted that no private investors have expressed serious interest in the Post Office’s revival.

She posed a series of unanswered questions, including:

• What support have retrenched employees received through the Temporary Employer/Employee Relief Scheme (TERS)?

• What steps have been taken to involve the private sector in core service delivery?

• Why is SAPO still classified as a strategic national asset despite its reliance on repeated bailouts?

• Who will bear the financial risk under the proposed funding model?

“A turnaround plan cannot rely on slogans or structural tinkering,” Boshoff said. “It must restore credibility, modernise operations and rebuild trust with the South African public who depend on these services.”

Boshoff stressed that the committee would continue to demand full transparency, greater accountability and detailed performance indicators from those leading the business rescue process.

“The relevance of the Post Office in the broader communications and logistics sector is fast diminishing,” she warned. “This can only be reversed through genuine diversification of its service offering and complete modernisation of its operations.”

Compiled by Betha Madhomu