Department of Communications and Digital Technologies Director-General Nonkqubela Jordan-Dyani confirmed the appointment of a new board of directors was under way.
Image: File
The South African Post Office (SAPO) is gearing up to file a court application as part of its business rescue exit plan, once a new board of directors and executive management are formally appointed.
Acting CEO Fathima Gany confirmed this development during a presentation of the agency's 2026 budget and annual performance plan to the Communications and Digital Technologies Portfolio Committee on Thursday.
Gany indicated that the business rescue practitioners have been actively engaging with executive teams and the Department of Communications and Digital Technologies, meeting twice weekly to work towards a return to normalcy for the organisation.
"We want a responsible exit and smooth business continuity. The business rescue practitioners plan to exit by bringing a court application through an affidavit," she explained.
The affidavit, which is currently being drafted, will include provisions for transferring responsibilities to an accounting authority — in this case, the newly appointed board of directors and the executive management.
Department of Communications and Digital Technologies Director-General Nonkqubela Jordan-Dyani confirmed that the appointment process for the new board is under way, with only final verifications remaining for key positions, including the chairperson and deputy.
"We are at the last phase of verification of the chairperson, the deputy, and union representatives, as it is mandatory," confirmed Jordan-Dyani.
Gany further highlighted that the management team has developed an annual performance plan that integrates business outcomes from the business rescue process, aiming to restore financial sustainability while fulfilling its social mandate.
"It’s a post-rescue plan, but it still accounts for funding, as there is a key dependency on funding to enable investment, so that we can diversify and repurpose the business," she stated.
Among the strategies introduced are a solid focus on governmental business, stronger private partnerships, and the monetisation of the agency's property portfolio.
SAPO Executive General Manager Jikesh Jagbeer reiterated the aspirations for the Post Office, expressing a vision of transforming it into a modern, relevant, and financially viable national institution.
"Post Office still matters, with the right choices, disciplined execution, and partnerships. We can regain relevance and rebuild stakeholder and customer confidence," Jagbeer asserted.
He detailed revenue ambitions projecting an increase from R114m in this current financial year, R187m next year, and R383m in the following year.
Jagbeer acknowledged that success would heavily rely on the funding needed for the turnaround plan and the necessity for regulatory certainty regarding the institution's future role.
"The reality is that we need a period of time to implement the revenue products and services," he remarked, while outlining an estimated capital requirement of R1.89 billion to bridge the agency's monthly shortfalls.
In a related development, Postbank has set its sights on securing R300 million for infrastructure investments and is readying to take the South African Social Security Agency (Sassa) to court over outstanding payments.
This happens as Postbank needs R300m in the short-term to continue to invest in infrastructure in order to continue to deliver on the mandate.
Postbank CEO Nikki Mbengashe revealed that Sassa has not paid the bank in six months, leading to a strained operational environment.
"They owe us over R100 million, and this is putting a strain on our business," Mbengashe lamented, stressing the urgency of recognising the contractual obligations outlined in a court order.
She confirmed that a court action may be necessary to reclaim these funds, as Sassa has failed to honour the Master Service Agreement.
Furthermore, the South African Reserve Bank's regulations mandate Postbank to hold a capital of R2 billion, adding another layer of pressure to its financial strategy.
Mbengashe remained optimistic about growing Postbank's customer base by 5% and procuring plans for a dedicated head office.
The Postbank is also aiming to grow its customer base in terms of depositors by 5%.
Mbengashe added that the Postbank intended to procure a head office building.
"We don’t have a head office. It is a bizarre thing. Every time we go to the market, we don’t come with the offices that we desire."
mayibongwe.maqhina@inl.co.za