Post Office running at a loss

The South African Post Office has given Parliament an update of its finances.

The South African Post Office has given Parliament an update of its finances.

CAPE TOWN - The South African Post Office (Sapo) on Tuesday said it was running at a loss of more than R170 million.

Sapo's board gave Parliament's Communications Committee an update on its finances earlier.

The Auditor General's office also gave feedback on its review of the Post Office's operations which raised many concerns.

Sapo CEO Chris Hlekane said although they upped their profit by two percent in 2012, revenue growth remained a huge challenge.

He said the ongoing mail delivery strike has had a negative impact on their services.

However, he also said nearly 90 percent of their mail delivery was achieved.

Sapo also revealed by the end of 2012 it was operating at a net loss of more than R170 million.

More than 40 percent of Sapo's key performance indicators were not achieved and the company's COO position is yet to be filled.

The auditor-general's office pointed out weaknesses in Sapo's contract management and said it was still struggling with fruitless and irregular spending.