Post Office nears raising R2.7bn in capital
Johannesburg - The embattled South African Post Office (Sapo) is near to raising R2.7bn in capital from the likes of banks, says chief executive officer Mark Barnes.
Sapo has suffered years of maladministration with the state-owned entity recording a R1.5bn loss in 2015.
A months-long 2014 strike also crippled postal services while Public Protector Thuli Madonsela earlier this year found Sapo’s 2010 acquisition of a R161m ten-year office lease to be irregular.
But government in January this year hired Mark Barnes - the former CEO of private equity firm Brait - as Sapo’s new chief executive officer in a bid to help turnaround the flagging company.
And after government gave Sapo a R650m cash injection earlier this year, Barnes told Fin24 that Sapo is nearing raising R2.7bn from banks.