The South African Post Office has progressed in its business rescue process, moving out of intensive care into a high-care phase, according to acting chief executive Fathima Gany. She updated the parliamentary portfolio committee on communications and digital technology on Tuesday that the entity, in business rescue since July 2023, now prioritises a structured handover while keeping operations running as a going concern.
Cabinet approved a new board of directors last week. The board is scheduled to begin operations on 22 June, allowing business rescue practitioners to complete their exit. The transitional phase focuses on building internal capabilities in key areas previously supported by the practitioners.
Post Office transitions from business rescue ‘intensive care’ to ‘high care’
Gany described business rescue as the statutory intervention required for an entity in intensive care. With that phase ending, the Post Office now operates in a high-care environment that demands ongoing attention to stay viable.
“It’s over now, but with the board of directors, it doesn’t mean it’s business as usual; it’s a high-care business,”
she told the committee.
“The whole transition plan is focused on a high-care environment and maintaining the ongoing interest, because when someone is in high care, what do you do? You keep the patient alive.”
She warned that post-rescue periods often reveal gaps. These include statutory audits delayed by the moratorium during business rescue, high staff attrition, and incomplete documentation or organisational history. The transitional team is addressing these issues before full handover to normal governance.
New board and capacity building set handover timeline
The cabinet-approved board marks a pivotal step toward concluding the business rescue. Practitioners Anoosh Rooplal and Juanito Damons are filing their final court motion as they exit the process.
Certain functions that developed heavy reliance on the practitioners’ expertise — human resources, legal services and the property portfolio — now receive targeted support. The relevant divisions are building their own capacity during the transition so they can assume full responsibility after 22 June.
Gany stressed that simply returning the entity to the shareholder does not automatically create a stable operating environment. Deliberate preparation remains essential to avoid disruption.
Minister emphasises digital investment and careful partnership evaluation
Minister of Communications and Digital Technology Solly Malatsi, who attended the meeting, highlighted the need for critical investment to modernise the Post Office.
“The biggest change in this market has been in the direction of digitalization and the infrastructure to implement it — this is where the Post Office has lagged behind for a long time,” Malatsi said. He added that future sustainability requires both innovation and reinvestment in basic infrastructure.
Malatsi noted that approximately 130 proposals for strategic partnerships had been received from local and international stakeholders following a call last year. Preliminary analysis suggests some could fit the entity’s current form, but further scrutiny involving the National Treasury and other departments continues. “This is not a rushed process, but is done to ensure these are partnerships that can add value,” he said.
MPs question concrete plans for long-term sustainability
Committee members expressed reservations about whether the Post Office has truly stabilised. They asked for clearer details on the digital strategy, the entity’s long-term vision, and why courier services modernisation has not received more attention.
These questions underscore ongoing parliamentary scrutiny of the Post Office’s ability to achieve lasting financial and operational health beyond the business rescue phase.
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