I have been advised by the SAPO as follows:
1. (a) Landlords
As at 31 January 2022 an amount of R304 million was owed. The amounts owing to landlords include rental and operational/ utilities costs
(b) & (c) Municipalities & Water and electricity
The current balance for municipalities as at 10 February 2022 is R915 000 which is only the current costs for the month.
2. The reason for outstanding rentals is due to SAPO’s constrained cash flow position. SAPO’s costs have continued to exceed revenue resulting in losses for the year ending 31 March 2021 and for the ten months ending 31 January 2022. The losses are unfunded resulting in SAPO having insufficient funds to settle liabilities.
3. (a) Negative impact on customers as branches are closed / locked by landlords.
(b) Also impacts on revenue not being generated by closure of these branches.
4. SAPO currently does not have the required funds to settle the liabilities. SAPO has developed a revised strategy to improve its operational and financial performance – and is in the process of implementing such. In addition, SAPO has requested funding through the MTEF process.