SA Post Office, With R3.7 Bln Loan to Rebuild, Will Start Own Bank

The SA Post Office, which has been attempting a massive turnaround after being crippled by debt and poor service, has raised a loan of R3.7 billion locally and has got the greenlight from the Reserve Bank to start a bank, according to a media conference on Friday,

Minister of Telecommunications and Post Services Siyabonga CweleHe said the briefing was to update the media on “the progress we are making in turning around and modernizing the South African Post Office”.

He said the team led by CEO Mark Barnes that was appointed 11 months ago had steered the embattled post office to “calmer waters” and had done good work. Two major announcements that were made were that the Reserve Bank had given the Post Office permission to start its own bank, and that SAPO had managed to raise a three-year loan of R3.7 billion locally.

The post office apparently has huge debts to pay off, as well as unpaid workers. Cwele said that the board had signed an agreement with recognized trade unions and other representatives of workers that settled wages and conditions of employment from 2014 until the end of 2017.

Cwele said the Reserve Bank had earlier this week given approval for the Postbank to move ahead, and that the final level of the banking license application should be completed within 12 months