South African Post Office (SAPO) Chief Executive Officer, Nomkhita Mona has given the assurance that plans are in place to address the current financial problems at the entity.
This after SAPO recorded irregular expenditure of almost R200 million in the 2019-2020 financial year.
In April, Auditor-General Tsakani Maluleke found that SAPO was commercially insolvent.
Mona explains what plans are in place.
“We are very much focusing a lot on the cash-flow. We are focusing a lot on cost-reduction, more than just recovery. We need to ensure that SAPO spends money in places where it will have an impact and put it back in the business. So, we have really been quite tight in terms of managing that. The controls are in place. We do foresee that there will be an improvement.”
SAPO experiencing severe liquidity problems:
Challenges at SAPO
In May, the post office had said it was in the process of closing about 130 of its offices across the country mainly due to financial challenges.
It told Parliament that delays to complete the process have been caused by the current contracts it has entered into with various landlords.
The post office has recorded financial losses of R1.7-billion and its current liabilities exceed assets by R1.49 billion.
Concerns over governance challenges at the Post Office:
