Mashatile says govt not ready to let go of cash-strapped Post Office yet

CAPE TOWN - Deputy President Paul Mashatile told Parliament that government was not ready to let go of the Post Office amid calls to sell the cash-strapped entity.

He said the state-owned company still had a lot to offer, especially in rural communities that relied on it for crucial services.

Mashatile was responding to questions on the role of SOEs and how they could help create jobs and grow the economy.

The deputy president was asked by the FF Plus’s Hendrik van Den Berg whether it was not the right time to ease the load on government and let go of the Post Office, calling it a "dead horse".

"The Post Office is the best example of such a dead horse being kept alive only by sentiment."

But Mashatile said the Post Office was not dead just yet and government was still investigating ways to save the country’s SOEs, including merging some of the companies.

"But before we can say it’s a dead horse that must be put down, we just need to go through those reports properly and look at what the challenges are."

He said the Post Sffice had to be kept alive since many institutions like banks did not have a bigger reach in rural communities.