The South African Federation of Trade Unions (SAFTU) notes with grave concern the growing calls from sections of government and business to liquidate the South African Post Office (SAPO). If such a decision is taken, it will represent one of the most devastating blows to workers and poor communities since the democratic transition.
SAFTU has warned repeatedly for more than a decade: that the destruction of the Post Office has been a deliberate consequence of governance failures, corruption, and the refusal of authorities to act despite overwhelming evidence placed before them.
Today, those who ignored the warnings are now preparing to present liquidation as the only option.SAFTU rejects this narrative. Liquidation would not be inevitable. It would be the result of political decisions and failures of oversight.
A Record of Ignored Warnings
For many years, SAFTU and its affiliate unions have attempted to alert authorities to the crisis facing the South African Post Office. We wrote repeatedly to government institutions,including the Presidency, The Minister of Finance, The Portfolio Committee on Communications, National Treasury
and The Office of the Public Protector.
In October 2025, SAFTU formally requested that the Public Protector investigate the dereliction of duty by the Minister of Finance for failing to act on evidence of procurement breaches and unlawful outsourcing affecting the Post Office.
This complaint documented how governance failures and illegal outsourcing arrangements undermined the Post Office’s financial sustainability and stripped it of vital revenue streams.
The complaint also highlighted how Telkom unlawfully outsourced restricted telegraphic services to a foreign company, Network Telex (UK), These actions violated the Postal Services Act, the Public Finance Management Act, and Section 217 of the Constitution
and The outsourcing diverted an estimated R3 billion in revenue away from the South African Post Office.
Instead of decisive intervention to protect a critical public institution, government institutions allowed the matter to drag on for years without resolution. At the same time, the National Treasury refused to release the additional R3.8 billion required to complete the Post Office’s business rescue plan, despite commitments made in court. This refusal effectively strangled the recovery of the institution.
In short, the Post Office was pushed to the brink through a combination of policy neglect, governance failures, and the systematic erosion of its revenue base. The Liquidation Would Be a Catastrophe for Workers and the Poor.
The consequences of liquidating the Post Office would be immediate and devastating.
- Massive Job Losses
- Approximately 5,700 remaining Post Office workers would immediately lose their jobs. The majority of these workers are older black women, many of whom are the primary breadwinners in their families. Each worker supports multiple dependents.
The loss of these jobs would push an estimated 85,000 working-class family members into deeper poverty. In a country already suffering from mass unemployment and deep inequality, such a decision would be socially reckless.
Collapse of Essential Services in Rural Communities: The liquidation would result in the closure of 657 remaining Post Office branches across the country. Many of these branches are located in rural and township communities where the Post Office remains the only accessible service point. These branches provide critical services, including access to government grants, affordable banking and financial services, delivery of mail and parcel, official communication service, identity verification and other government services. For millions of people, particularly in rural areas, the Post Office is not simply a business. It is a lifeline without it; communities will be forced to travel long distances and incur additional costs simply to access basic services.
Deepening Inequality and Social Exclusion:
The closure of the Post Office would accelerate the exclusion of poor communities from essential economic and communication infrastructure. Private companies will not replace these services in remote areas because they are not profitable. This means that liquidation would entrench a two-tier society, where the wealthy access modern digital services while the poor are cut off from basic infrastructure.
A Political Choice, Not an Economic Necessity
The government must not pretend that liquidation is unavoidable.
The Post Office crisis is not simply the result of technological change or declining mail volumes. It is the result of policy failures and governance failures.
Among the critical issues raised by SAFTU over the years are:
The unlawful outsourcing of services and diversion of revenue, failure by Treasury to complete the recapitalisation promised in the business rescue plan, weak oversight of state-owned enterprises and failure by government departments themselves to utilise Post Office services.
Instead of supporting the Post Office, government institutions increasingly shifted services away from it, undermining its revenue and viability.
SAFTU’s Alternative Vision
SAFTU believes the South African Post Office must not be destroyed.
It must be rebuilt as a modern public service institution serving the needs of the people. This requires decisive action.
The Government must immediately:
- Complete the recapitalisation of the Post Office
The R3.8 billion requested by the business rescue practitioners must be released so that the Post Office can settle its remaining debts and stabilise operations.
- Direct all government departments to prioritise the Post Office
The government must lead by example by ensuring that state departments use the Post Office for mail, logistics,and communication services.
- Transform the Post Office into a multi-purpose service hub.
The Post Office should be expanded into community service centers providing banking services, government services, digital access, e-commerce logistics
and financial inclusion services. Invest in modernisation and skills development. Workers must be supported through training and technology upgrades so that the institution can adapt to the digital economy.
The Working Class Cannot Pay for State Failure:
SAFTU warns that the liquidation of the Post Office would represent another chapter in the destruction of public institutions under austerity policies. Workers and poor communities did not cause this crisis. Yet they are the ones being asked to pay the price. The Liquidation would mean mass unemployment, destruction of rural services, deeper inequality
and loss of strategic public infrastructure.
Defending Public Services:
SAFTU calls on the government to abandon any plans to liquidate the South African Post Office. Instead, the government must act decisively to restore governance, recover lost revenues, and rebuild the institution. The Post Office belongs to the people of South Africa. It cannot be sacrificed to austerity, privatisation, or governance failures. The working class must not be forced to pay for the mistakes and negligence of those entrusted with protecting public institutions.
A statement was issued on behalf of SAFTU by the General Secretary, Zwelinzima
Vavi.
For media inquiries, contact the National Spokesperson at
Newton Masuku
newtonm@saftu.org.za
0661682157
Media Officer
Asive Dyani
0719019564
