SA Post Office devises turn-around strategy to reposition itself
The SA Post Office has been riddled with challenges with its core revenue declining year-on-year going from over R3.4 billion in the 2015 financial year to a little over R 1.5 billion in the current one.
JOHANNESBURG -The cash-strapped South African Post Office (Sapo) has devised a turn-around strategy that will see the entity go from being financially in the red and repositioning itself in the changing postal sector.
On Thursday, Sapo said it needed an R8 billion bailout from Treasury over the next three years to stay afloat.
Communications Deputy Minister Philly Mapulane said the department supported the entity’s new strategy, which was finalised last month.
The SA Post Office has been riddled with challenges, with its core revenue declining year-on-year, going from over R3.4 billion in the 2015 financial year to a little over R 1.5 billion in the current one.
Mapulane said Sapo’s new strategy would go a long way to ensure Sapo repositioned itself.
"First part is to reposition the Post Office, introduce digital communication platforms and position the Post Office as a logistics hub".
At the same time, Mapulane has raised concerns over the R200-million irregular expenditure for which no one has been held accountable.
"The management as well as the board must do a thorough investigation of this irregular expenditure and there must be consequence management."
Scopa and the department have instructed Sapo to compile a report on the expenditure – and table their 2020/2021 annual report by December.