The business rescue practitioner for the South African Post Office has informed Minister Solly Malatsi of plans to seek liquidation. The minister views this step as premature amid ongoing government discussions. Funding issues persist as National Treasury has not provided the requested R3.8 billion.
The South African Post Office (SAPO), a state-owned entity, is grappling with severe financial challenges that have led its business rescue practitioner to notify Communications Minister Solly Malatsi of an intent to pursue liquidation. This notification came via a letter sent on Friday, March 13, 2026.
SAPO entered business rescue proceedings in July 2023 as a measure to avert full liquidation, following a provisional liquidation order in February 2023. The earlier action addressed mounting insolvency, substantial debts, and operational shortcomings that had plagued the organization.
Despite these efforts, progress has stalled due to the absence of allocated funding. The business rescue practitioner had requested R3.8 billion from National Treasury, but this amount remains unapproved.
Minister Malatsi responded by emphasizing the need for continued dialogue. In a statement, he said: “My office has received correspondence from the SA Post Office Business Rescue Practitioner expressing their interest to file for the liquidation of SAPO. It is my view at this stage that talk of liquidation is premature given the extensive ongoing conversations within government, particularly between the department and National Treasury regarding the prevailing situation at the Post Office. These engagements are focused on finding a way forward that balances the urgency of the Post Office situation, the welfare of the staff and the limited resources in the best interest of our country.”
The minister's position highlights active negotiations aimed at resolving the crisis without resorting to liquidation, though the lack of funding continues to cast uncertainty over SAPO's future.
