SA Post Office is developing a recovery strategy to reposition itself
The SA post office faced challenges as its core revenue declined year over year from over R3.4 billion in fiscal year 2015 to just over R 1. R 5 billion for the current fiscal year.
FILE: Scopa and the department tasked Sapo with writing an expense report – and filing their 2020/2021 annual report by December. Photo: Sethembiso Zulu / Eyewitness News
JOHANNESBURG – Cash-strapped South African Post (Sapo) has developed a turnaround strategy that will see the entity go from a financial deficit to repositioning in a rapidly changing postal sector.
On Thursday, Sapo said he needed a R8 billion treasury bailout over the next three years to stay afloat.
Deputy Communications Minister Philly Mapulane said the ministry supports the entity’s new strategy, which was finalized last month.
The SA post office has been fraught with challenges, with its core revenue declining year over year from over R3.4 billion in fiscal 2015 to just over R1.5. billion rand for the current fiscal year.
Mapulane said Sapo’s new strategy would go a long way in securing Sapo’s repositioning.
“The first part consists of repositioning La Poste, setting up digital communication platforms and positioning La Poste as a logistics hub”.
At the same time, Mapulane raised concerns over the irregular spending of R200 million for which no one has been held accountable.
“Management as well as the board of directors need to thoroughly investigate this irregular spending and there needs to be management of the consequences.”
Scopa and the department have asked Sapo to write an expense report – and file their 2020/2021 annual report by December.