Auditor-General says SA Post Office commercially insolvent - Report

Hanno Labuschagne

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Auditor-General says SA Post Office commercially insolvent - Report

Auditor-General Tsakani Maluleke has found that the South African Post Office is commercially insolvent, SABC News reported.

According to the report, Maluleke's audit review of the Post Office Group's annual results noted it had incurred losses of over R1.7 billion in the 2019/2020 financial year, with its liabilities exceeding assets by R1.5 billion.

The Auditor-General gave the group a disclaimer option for its latest annual report.
 

Hummercellc

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“However, in the short to medium term, we fully expect that the National government will support SAPO’s efforts in dealing with these legacy issues,” she added.

So I guess, it is not the ANC to blame for poor governance and the inability to deal with corruption.
So it must be Apartheid?
 

AstroTurf

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Telkom, SAA, SABC and now the post office. As soon as there is competition to the monopolies the SOE's collapse.
 

eg2505

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Awe fellow taxpayers! Time to bail them out again!
the phrase,

"its pouring out as faster then you can pour it in"

comes to mind
funny its its a R30,000 citi golf, but not when its a SOE thats essential
 

mypetcow

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I don’t think it’s actually easy for the government to shut it down. Losses aside the post office is the official responsible party for all incoming letters and small parcels into the county that are not sent via courier.

Not only that they forward all mail correspondence (post cards, letters, parcels) for international haulage via air or possibly road to their international counterparts. Not sure about the road part though.

Anyway it’s part of this treaty: https://en.wikipedia.org/wiki/Universal_Postal_Union

I think the government will therefore continue to run the post office as a ‘public service’ rather than a profitable business. So the loss making is just a big show. It will remain a tax funded enterprise and the losses will be paper losses only. It’s all tax money anyway.

The post office is probably more integrated and ‘necessary’ to fulfill international obligations than anyone here realizes.
 

G.A.S

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2 birds with 1 stone -- Just force places that sends spam emails to buy postage stamps for each email! And have the post office enforce that :p (but no stamps for legit emails)

^ This is more likely to succeed than any other bailout or turnaround plan, unfortunately.
 
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