Post Office financial position much stronger than previous year – Barnes
The annual report tabled in Parliament notes that this loss is 6% lower than the loss the post office suffered during the previous financial year.
CAPE TOWN - The South African Post Office (Sapo) board and its CEO Mark Barnes say its financial position is stronger despite incurring a loss of R908 million for the financial year that ended on 31 March.
The annual report tabled in Parliament notes that this loss is 6% lower than the loss the Post Office suffered during the previous financial year.
However, the annual report also shows the Post Office will need more help from government to continue operating.
While the board says it is comfortable with the post office’s solvent, cash constraints mean it will still need government support to keep going for the foreseeable future.
The government gave Sapo an equity injection of R3.7 billion last December, which was used to settle long-term loans.
Barnes says the Sapo has finally turned the corner, but it concedes liquidity remains a challenge mostly due to lower mail volumes and the loss of customers.
In his report, Auditor-General Kimi Makwetu puts a question mark over the Post Office’s ability to continue as a going concern, saying it failed to make enough money to cover its high-cost base.
(Edited by Mihlali Ntsabo)