Tag: bankrupt

South African Post Office on the edge

The South African Post Office is experiencing a meltdown with branches unable to serve clients, service providers not being paid, and mass branch shutdowns, according to a recent article by MyBroadband.

  • In April 2021, Auditor-General Tsakani Maluleke revealed that the South African Post Office is commercially insolvent
  • In the 2019/2020 financial year, the Post Office incurred losses of over R1.7-billion
  • Its liabilities exceeded its assets by R1.5-billion
  • Most Post Offices had signs about service delivery problems in their windows
  • Some branches have no electricity
  • Vehicle license services are often offline
  • Employees allege that pension fund deductions are taken from their salaries but that these deductions are not paid into these pension funds
  • Landlords and service providers are struggling to get money from the Post Office
  • Unpaid invoices total R638-million
  • SA Post Office CEO Nomkhita Mona blamed the Post Office’s dire financial situation on an outdated business model and the impact of the Covid-19 pandemic

Day Zero looms for the SABC

SABC, the embattled state-owned broadcaster, is facing a serious financial crisis. At the end of May it was forced to choose between paying salaries and paying municipal bills – and it now owes the City of Johannesburg more than R13.5-million.

According to MyBroadband, apart from its municipal bills, the SABC owes Sentech R317-million and MultiChoice division SuperSport R208-million.

The SABC is now looking for a R3.2-billion government guarantee to help it to raise money from lenders to stay afloat.

Massive debts
During an interview on SABC, the company’s chief financial officer, Yolandi van Biljon, warned that Day Zero (leading to total blackout) could happen “tomorrow”.

The SOE has debt of approximately R1.8-billion. If debtors stop supporting them, the broadcaster could go under.

The ten institutions owed money by the SABC could call in their payments at any time.

“I think Day Zero can happen tomorrow. It depends if one of these big partners are unable to support us financially,” says Van Biljon.

She warned that the SABC can also be forced to switch off its signal and distribution network or its critical infrastructure can fail, which would lead to a total blackout.

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