The Cost of Trying to Save a Collapsing Institution

Is the South African Post Office being rescued or milked? That’s the growing question on everyone’s mind as Parliament shines a spotlight on the R86 million spent on business rescue consultants with little to show for it.

When two business rescue practitioners, Anoosh Rooplal and Juanito Damons were appointed to turn around the failing South African Post Office (Sapo) in 2023, hope lingered that this would be a second chance for the ageing institution. But as the numbers trickle in, that optimism is quickly being replaced by outrage.

R86 million has already been paid to these two individuals. Add that to a pile of over R200 million in wasteful and fruitless expenditure since 2021, and you begin to understand why Members of Parliament (MPs) are livid.

Veronica Mente-Nkuna, an MP on the Standing Committee on Public Accounts (Scopa), put it bluntly: “Two people. R86 million. What exactly are we paying for?”

Auditor-General’s Grim Diagnosis

According to the Auditor-General’s office, the money wasn’t just for the duo, it also covered various experts like legal advisors, tax consultants, and evaluators, all supposedly necessary to execute the turnaround plan. Yet, the results speak volumes: R152 million in fresh fruitless expenditure was reported this year alone. Of that, R136 million has simply been written off.

Sapo’s internal failures are not just bureaucratic, they’re cultural. The AG’s report paints a picture of a broken organisation: poor record-keeping, weak contract oversight, late payments that incur penalties, and a culture of inefficiency that’s been allowed to fester.

In plain terms? Money is leaking, and no one seems willing or ableto plug the holes.

No Accountability, No Answers

The most damning aspect is the absence of consequence management. Investigations into financial missteps are delayed, disciplinary action is rare, and when actions are taken, they’re often justified by you guessed it, lack of funding.

This reactive, almost resigned attitude has created a cycle of poor governance and repeated losses. Even the AG had to admit that leadership and oversight were sorely lacking. And while recommendations have been made,including strengthening oversight and empowering the Financial Misconduct Committee, there’s growing skepticism about whether anything will actually change.

South Africans Speak Out

On social media, the reaction has been sharp. Posts on X (formerly Twitter) have called the R86 million spend “daylight robbery” and “another SAA in the making.” Others have pointed to the irony of postal workers facing job insecurity while consultants rake in millions.

Some recall how the SAA rescue played out—eventually successful, but with much of the credit going to leadership changes rather than the business rescue itself. Many are asking whether the same could happen here: a top-heavy, overpaid intervention that produces a glossy plan but little delivery.

Why It Matters More Than Ever

In a country grappling with unemployment, rising inequality, and service delivery protests, every rand of public money counts. The Post Office isn’t just a failing state entity, it’s a symbol. For millions in rural areas, it’s still the only access point to basic financial and government services.

Letting it collapse is not an option. But neither is continuing to pour money into a black hole of poor planning and weak leadership.

The Real Rescue Plan Starts with Accountability

What South Africans want isn’t another report or another glossy plan. They want real accountability. They want to know who is benefitting from their taxes and what’s being done to protect public funds.

If the Post Office is ever to be truly rescued, the culture at the top needs more than just business consultants,it needs a hard reset.

{Source: IOL}

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