The South African Post Office (SAPO) has recorded an irregular expenditure of almost R200-million for the 2019 and 2020 financial year.
This was revealed by the Deputy Minister of Communications and Digital Technologies, Philemon Mapulane, in Parliament on Tuesday.
He says the cash strapped entity has been flagged as a going concern due to its financial challenges.
“The 2019-2020 financial year as done by the Auditor General completed by the end of March -the SAPO group recorded an overall of total of hundred and ninety-nine point three million in irregular expenditure…The entity has also outlined as part of its presentation that will be made today the various interventions as part of its interventions to reduce the recurrence of the irregular expenditure,” says Mapulane.
In May, 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.
In April, Auditor-General Tsakani Maluleke found that the Post Office is commercially insolvent.
The Auditor-General has found that management did not implement proper record keeping to ensure that complete, relevant and accurate information is accessible and available to support credible financial and performance reporting.
Concerns over governance challenges at the Post Office: