[Image: Wikicommons]
The Department of Communications and Digital Technology (DCDT) wants to take R150 million from a “rural connectivity programme” to help the Post Office (SAPO) stay afloat.
DCDT Minister Solly Malatsi said that the department approached the National Treasury to request the re-allocation of ‘available funds’ from a project aiming to bring internet to South Africa’s rural communities.
“This is a short-term measure aimed at addressing SAPO’s immediate operational challenges while ensuring the continuation of essential postal services to the public.”
While the Post Office seems to be in a perpetual ‘operational challenge’, the broadband connectivity project hasn’t delivered as planned either. The idea was to provide 6,135 government facilities with high-speed internet, but according to an article News24, less than a thousand facilities have been upgraded.
R1.8 billion has been allocated for the internet project in the current financial year, so the DCDT likely sees the R150 million as a small amount to scrape off.
Things are still looking dire at SAPO, with acting CEO Fathima Gany saying the Post Office would face “day zero” and face liquidation if it didn’t secure additional funding a few months ago.
Business rescue practitioners have done a great deal to salvage the sinking ship, with liabilities of nearly R8.7 billion in July 2023 being brought down to just R440 million in 2024. Most of this has been achieved by retrenching 5,000 Post Office employees and closing 366 Post Office branches.
The Communication Workers Union have however urged the government to bail out SAPO with an additional R3.8 billion – an amount government promised in 2024. Finance Minister Enoch Godongwana however said there would be no further bailouts for the Post Office in his Medium-Term Budget Policy Statement.
“I call it tough love. There is no money [for SAPO] in the adjustments. We are hoping that the Department of Communications and Digital Technologies will reprioritise its budget.”
It now seems that the DCDT is ‘reprioritising’ SAPO over connecting underserved communities to the internet.
[Source: News24]
