South Africa’s constant SOE bailout crisis
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GUEST – Jones Gondo, Senior Research Analyst at Nedbank & Israel Noko, CEO of NPI governance consulting
The South African Post Office (SAPO) may have been saved from provisional liquidation and, instead, been put into business rescue, but it is by no means out of the woods. Should the state-owned enterprise (SOE) have been provisionally liquidated, it would have seen its assets sold in order to pay all its creditors. Now, however, the aim is to rehabilitate the entity so that it can return to financial health and continue operating. If this fails, liquidation will be the next step.
The South African Post Office (SAPO) may have been saved from provisional liquidation and, instead, been put into business rescue, but it is by no means out of the woods. Should the state-owned enterprise (SOE) have been provisionally liquidated, it would have seen its assets sold in order to pay all its creditors. Now, however, the aim is to rehabilitate the entity so that it can return to financial health and continue operating. If this fails, liquidation will be the next step.
