Pretoria – The Joint Business Rescue Practitioners (BRPs) of the South African Post Office (SAPO) have filed an application in the Pretoria High Court seeking an order to end business rescue proceedings.
The application, lodged on 12 June 2026, requests judicial authorisation to file a notice of substantial implementation of the adopted rescue plan, effectively concluding the process under section 132(2)(c)(ii) of the Companies Act.
BRPs Anoosh Rooplal and Juanito Damons said the rescue plan had been substantially implemented within their mandate.
“The business rescue process has stabilised SAPO’s balance sheet and significantly improved its operational position. The entity is currently paying its liabilities in the ordinary course of business,” they noted.
Financial Recovery
SAPO reported improved results for the year ending 31 March 2026, with revenue rising to R1.54 billion and net losses reduced to R71 million, down from R514 million the previous year.
This marks the lowest net loss in several years and reflects the impact of the rescue process.
Key milestones include:
- Creditor compromise: Debt reduced from R8.7 billion to R440 million, with over 99% of approved 12 cents in the rand distribution, amounting to about R1.015 billion, was paid to creditors by August 2024.
- Workforce restructuring: 4 342 employees retrenched by April 2024, cutting monthly staff costs nearly in half. Monthly staff costs reduced from R211.9 million to R115 million, generating annual savings of approximately R1.2 billion.
- Branch rationalisation: 366 branches closed, leaving 657 strategically retained sites to serve the rural communities.
- Improved solvency: SAPO’s balance sheet improved materially, moving to a positive R840 million, from a negative net asset value of R7.9 billion rendering the organisation technically solvent.
- Statutory compliance: Obligations to SARS, retirement funds, and medical aid met consistently.
Transition to New Governance
The BRPs emphasised that SAPO’s next phase requires shareholder-led capital injection and permanent governance structures.
A new board will assume office on 22 June 2026, supported by Acting CEO Fathima Gany’s High Care Leadership Team.
The team will oversee the High Care Transition Programme, focusing on operational resilience, governance stabilisation, and long-term sustainability.
Outstanding Challenges
Despite progress, several modernisation initiatives remain incomplete due to funding constraints.
While SAPO received R2.4 billion in government support, a second R3.8 billion tranche for growth initiatives was not delivered.
As a result, IT upgrades, digital services, and broadband expansion will now fall under the responsibility of the shareholder and the new board.
Rooplal concluded: “Coming out of the Business Rescue is a positive step for this entity.
“SAPO can and should play a critical role for all South Africans, especially those people living in rural areas.
“The BRP team will provide detailed transition documentation and targeted support to the High Care Leadership Team to ensure operational continuity.”
Background to SAPO’s Business Rescue
SAPO was placed under provisional liquidation by the Pretoria High Court on 9 February 2023.
On 10 July 2023, the court placed the organisation under supervision and business rescue, superseding liquidation proceedings.
Joint interim BRPs were appointed on the same date and subsequently ratified by creditors on 24 July 2023.
The business rescue plan was published on 23 November 2023 and formally adopted on 7 December 2023.
The business rescue plan comprised four key pillars:
- 12 cents in the rand dividend to all proven creditors, which was implemented.
- A conditional 18 cents top-up dividend to qualifying statutory and payroll creditors, contingent on R3.8 billion in government funding by 31 March 2025, which lapsed when funding did not materialise.
- A comprehensive operational restructuring programme, including staff and branch rationalisation, has been completed.
- A longer-term turnaround strategy, dependent on shareholder funding, which has not been implemented
