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Cape Times reports that the SA Post Office (Sapo) has painted a bleak picture of its finances during the 2022-23 financial year.
In its annual report tabled in Parliament, Sapo advised that its financial position remained extremely dire. CEO Nomkhitha Mona said Sapo was at a critical point in its existence. The entity was placed in provisional liquidation in February 2023 and then in business rescue in July. Continued mismatch between monthly revenues generated and corresponding operating expenditure, resulted in a deficit to meet monthly financial obligations. “Outstanding liabilities at 31 March 2023 amounted to R9.5 billion, with statutory payments of R2.4 billion. Statutory liabilities include R1.1 billion for the Post Office Retirement Fund, R539 million for Sars, R596 million for Medipos medical aid and R108 million for UIF,” Sapo advised. It owed R212 million to former employees for voluntary severance package payments that were paid on a monthly basis. The organisation said 122 branches had been closed during the financial year under review and the workforce was reduced from 14,460 as at 31 March 2022 to 12,640 at March 2023. “The reduction in headcount was due to resignations, deaths, dismissals, ends of contract, retirement, and the implementation of the voluntary severance package programme. From the inception of the introduction of voluntary severance packages in December 2022 to March 2023, 1,891 employees were approved for the VSP.” Sapo also pointed out that in order to address the high employee cost base, a Section 189 process commenced, with notice given to unions in March 2023, but due to the provisional liquidation “the Section 189 process has been placed on hold until finality in the matter is reached.”
- Read the full original of the report in the above regard by Mayibongwe Maqhina at Cape Times
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