SA Post Office: 14 Years of Losses, R10B+ in Bailouts, Business Rescue

The South African Post Office is the most complete example of how the ANC destroys a state-owned enterprise: appoint politically connected managers, interfere with commercial decisions, loot the budget, and consume bailouts until collapse.

SAPO's first financial loss came in 2013 — and losses continued every year for 14 consecutive years. CEO Mark Barnes (2016-2019) strengthened the balance sheet to R16B equity but resigned over government interference with Postbank strategy. Within 4 years, SAPO swung to -R7.9B. Employee costs reached 150% of revenue.

On 10 July 2023, SAPO was placed under business rescue owing R8.7 billion. The rescue plan retrenched 6,000 of 11,083 staff. In 2025, Treasury withdrew R3.8B in funding, threatening the entire rescue. Total cost to taxpayers: over R10 billion in bailouts consumed.