Media statement on the implementation Postbank Act

The Minister of Communications, Mr Radhakrishna 'Roy' Padayachie met with the South African Post Office (SAPO) on 23 August 2011. The purpose of the meeting was to assess the progress on the corporatisation of the Postbank.

The South African Postbank Act Limited No 9 was promulgated in December 2010 and the commencement date was 22 July 2011. The signing of the Postbank Act established the Postbank as a subsidiary of the South African Post Office (SAPO).

The envisaged role of the Postbank in prioritising the banking needs of the unbanked majority, thus facilitating their inclusion into the economic mainstream and to promote a culture of savings, has led to it being accorded the status of a flagship project for the Ministry.

The Minister was apprised of the progress made towards the implementation of the Postbank Act. Among the milestones achieved are, amongst others, the Postbank has applied for and received VISA membership and is on the verge of finalising the development of Lending, Borrowing and Investment policies of the Postbank as required by section 26(2) of the Act.

It is envisaged that these policies will be tabled in Parliament before the end of the year. Preparations for the appointment of the Postbank Board by the soon to be established nomination committee is on track. The Post Office Board has completed the determination of the Company structure and the conditions of service, remuneration and service benefits of the personnel of the company.

The meeting further resolved to establish the committee, Project Oversight Committee to fast track the implementation of this Act to be chaired by the Minister. It comprises the Minister of Communications, Minister of Finance, SAPO Board members, and the Reserve Bank. This Committee’s mandate is to provide overall oversight into the Postbank corporatisation process. 

Following my meeting with the SAPO, and having received a detailed report on matters pertaining to corporatisation process of the Postbank, I am confident that the SAPO board and management are making progress and that the Postbank will be able to lodge its application for license by December 2011,” says Minister Padayachie.