Business rescue practitioners BRPs tasked with turning around the embattled South African Post Office SAPO have received over R240 million in salaries since 2023.
The state-owned SAPO entered business rescue in July 2023 following financial and operational difficulties. Anoosh Rooplal and Juanito Damons were appointed BRPs.
Post Offices secret R3.8b bailout planIn an update in 2024, they said SAPO needs R3.8 billion from the National Treasury to implement the business rescue plan. It received R150 million in February for immediate financial pressures.
The Democratic Alliance DA claims the BRPs have requested to present their plan to Parliaments Select Committee on Economic Development and Trade behind closed doors.
Rooplal and Damons reportedly cited "intellectual property" concerns and fears that competitors may exploit the plan.
This is nothing more than a smokescreen to avoid accountability, DA member of Parliament Nico Pienaar said in a statement on Monday 23 June.
The DA finds it outrageous that SAPO, already propped up by taxpayers, is asking for secrecy while its BRPs rake in R6 million per month. In total, the BRPs have already been paid over R240 million since 2023, with no sign of real turnaround.
According to Pienaar, the Committee has agreed to the BRPs request to keep the plan hidden from the public.
Taxpayers deserve full transparency - not another blank cheque for a mismanaged state entity. Without hard evidence of reform, this bailout is just more good money thrown after bad, he said.
Briefing the portfolio committee on communications and digital technologies in May, the BRPs said they were 75 percent done with the handover process to SAPOs shareholders. However, R3.8 billion was still needed to address outstanding creditors.