By REGINALD KANYANE
3 October 2024- The Chairperson of the Portfolio Committee on Communications and Digital Technologies, Khusela Sangoni Diko said she notes and welcomes the statement issued by the Minister of Communications and Digital Technologies, Solly Malatsi, on actions being taken by the Department of the Communications and Technologies (DCDT) to save the South African Post Office (SAPO).
Malatsi has announced that he has sought the National Treasury’s support to proactively establish a task team to pursue private financial and operational partners for SAPO.
Diko said that Malatsi’s efforts are in line with the committee’s recommendation made on two separate occasions. She further said the committee called for urgent and decisive action from the DCDT to resolve the challenges at SAPO following disappointing interactions with SAPO and the Business Rescue Practitioners (BRPs).
“While the committee strongly believes that strategic and value-creating public-private partnerships are of critical importance to ensure a sustainable Post Office, it is, however, extremely concerning that Malatsi’s statement seems to suggest a foregone conclusion that entering into such partnerships must equate to the “privatisation” of the Post Office.
“In this regard, Malatsi has said the pursuance of private financial and operational partners will enable serious consideration of privatisation scenarios as a preferential option to further funding from the fiscus,” she said.
Diko added that SAPO is a strategic state institution with an important mandate to connect people to one another and to the government in a fast-evolving technological age.
“As such, it must remain in the hands of the state, not beholden merely to commercial interests but committed to delivering on its universal services obligations espoused in the Postal Services Act of 1998.
“Further, the position of government cannot and should not shy away from unreservedly supporting the rescue and resuscitation efforts at the Post Office by, amongst others, preserving, protecting and extending its competitive advantage as provided for in law to reserve its exclusive licence to provide postal services for all parcels weighing under 1kg,” she said.
Diko said such measures and other revenue-generating initiatives, including leveraging its extensive property portfolio, more deliberate action to expand government-to-government procurement spent towards the Post Office, and enhanced and synergistic public sector partnerships, will go a long way to turning around the Post Office.
She said the committee reiterates its position that the Business Rescue Practitioners have failed to deliver on their mandate to rescue, stabilise and ensure the long-term commercial viability of the Post Office.
Diko said consequently, the committee shall invite Malatsi to explain his vision of the organisation and present to the committee all different scenarios with evidence and financial implications for each option.
“We support partnerships with the private sector to leverage resources, skills and market access, but that is not privatisation. It is strategic partnerships where risks are shared, not a scenario where the state carries the risks and capital monopolises the upside.
“That is an old model of public-private partnerships. We want to see clearly thought-out plans that build the capacity of state institutions whilst making SAPO commercially viable,” she said.
The Guardian 