The unbundling of the Postbank from South Africa's Post Office is underway and is currently at Cabinet level with only one pending amendment said Minister of Communications and Digital Technologies Stella Ndabeni-Abrahams.
On Tuesday the communications minister held a media briefing where she gave an update on institutional reforms and one of them was the unbundling of the Postbank from the SA Post Office (SAPO) to form a stand-alone state-owned bank.
Fin24 previously reported that during a briefing of the Standing Committee on Appropriations, Treasury officials said SAPO had requested additional support of R4.9 billion due to Covid-19 impact.
"SAPO is at a critical juncture. If the shareholder department does not act to restructure and repurpose the entity, SAPO will collapse," Treasury said in their presentation a month ago.
"The Post Office has also experienced its fair measure of financial and other challenges, including criminal activity at some of its outlets. The Department continues, of course, to make ourselves available to provide assistance to the Post Office in their journey to stabilising their finances and ensure their sustainability,"said Ndabeni-Abrahams.
In an effort to support the Post Office, Ndabeni-Abrahams said new board members with extensive and credible pedigree and experience in logistics, postal and banking services, to the boards of both the Post Office and its subsidiary, Postbank have been appointed.
"We have also provided timely support to the Post Office in its recent appointment of an experienced Chief Financial Officer and remain ready to do the same as the board endeavours to finalise the appointment of a suitable Chief Executive," she said.