The South African Post Office (SAPO) is facing financial collapse and needs an additional R3.8 billion to activate its business rescue plan. The institution has already let go of nearly 4,875 employees and closed 366 branches, with the potential of liquidation looming. The fate of thousands of employees and rural households that depend on the SAPO’s services remains uncertain, and diverse opinions on the matter are being debated by political parties. The SAPO plays a crucial role in communication for many households, especially in rural areas, and the hope is that a path towards survival and renewal can be found.
Recently, it has been discovered that the South African Post Office (SAPO) still needs to contribute to the Post Office Retirement Fund for its employees since May 2020. The employees contribute 7.5% of their salary, while SAPO contributes 13.55%. The outstanding amount remains unpaid despite a Supreme Court of Appeal (SCA) order.