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Post Office turnaround strat plans to keep Xmas merry

The state-owned entity's plans are geared towards ensuring mail is delivered on time.

FILE: The Post Office has developed a turnaround strategy after prolonged labour unrest brought it to the brink of collapse last year.Picture: Reinart Toerien/EWN.

CAPE TOWN - The Post Office is committed to delivering Christmas cards on time this year.

The cash-strapped state-owned entity's developed a turnaround strategy after prolonged labour unrest brought it to the brink of collapse last year.

The new board met with Parliament's Portfolio Committee on Telecommunications and Postal Services for the first time on Tuesday, to brief the committee on the implementation of their plans to stabilise the entity and make it profitable.

Acting CEO Mlu Mathonsi says the entity's plans are geared towards ensuring the Post Office can deliver mail on time.

"Plans that we have put in place are geared towards us ensuring that Christmas cards are delivered."

Democratic Alliance Member of Parliament Cameron McKenzie questioned whether aggressive cost cutting would affect service delivery.

"That's like a snake eating its tail, because the more you cut your costs the less you are able to deliver a service and the more revenue you lose."

Officials say they're trying their level best to strike the right balance between reducing costs and meeting obligations.

The Post Office needs funding to pay off debt, revamp IT systems and upgrade infrastructure and equipment.

It's looking to raise R1,2 billion from the banks and has approached treasury for R3,4 billion.

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