Cope calls for 55% sell-off of Post Office shares

12 August 2015 - 12:27 By RDM News Wire

Communications Minister Faith Muthambi said the SA Post Office (Sapo) will have a new board soon and a turnaround plan‚ but one opposition party said it wouldn’t be able to “deliver”. “Congress of the People (Cope) has for some time been drawing attention of the public to the dire financial situation at Sapo‚” said spokesperson Dennis Bloem.“Now it has virtually come to a standstill.”“The Sapo fleet is grounded”‚ said the party‚ as it “has no money to buy fuel”.“Sapo vehicles cannot‚ therefore‚ collect mail from post boxes…The credit cards are no longer functional‚” Bloem said.It was widely reported last week that Sapo’s contract for petrol cards had expired.This was confirmed by spokesperson Khulani Qoma‚ but he told Fin24 that it “is incorrect to suggest that the SA Post Office has run out of fuel‚ as deliveries are continuing currently”.Bloem said a government bailout – Sapo has reportedly secured a R1-billion guarantee - would not help‚ and the only solution for the situation‚ which Cope said “is literally and figuratively hopeless”‚ was a sell-off.“Cope reiterates that 55% of Sapo shares should be sold to the private sector‚ said Bloem.“Sapo cannot recover and the Treasury is too depleted to help it.”..

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