R650 million equity injection for Post Office to prevent its collapse

The South African Post Office is set to receive a R650 million equity injection from National Treasury in a move that hopes to save it from collapsing.

The embattled organisation has been marred by allegations of corruption, financial mismanagement and ongoing worker strikes in recent years.

702's John Robbie spoke to Post Office CEO, Mark Barnes, on more details around the issue.

Listen to the interview below:

The challenge is a little bigger than I initially analysed. It's got a lot to do with timing and funding.

Mark Barnes, SA Post Office CEO

I've made the point that most of our problem is paying for the mistakes of the past and filling the holes that we find ourselves in.

Mark Barnes, SA Post Office CEO

Barnes said that government needs to appraoch the organisations money problems as an investment rather than an expense.

Getting the cash on time is what we need to do because everyday that we don't pay creditors and we don't settle labour, the likelihood of the Post Office closing keeps increasing.

Mark Barnes, SA Post Office CEO

We need the R650 million of equity and we are looking for R2.7 billion of total loans. The R900 million is what we have not yet raised and it's also coincidentally the amount of money we owe to creditors.

Mark Barnes, SA Post Office CEO
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