The Post Office posted a loss of nearly R1 billion in the first quarter of the year. This is almost as big as the loss the entity suffered for the entire preceding year. The Post Office has made losses for each of the past thirteen years.
On Tuesday, in a presentation to the parliamentary portfolio committee on communications, the Post Office revealed that it applied for R7 billion worth of bailouts. This was according to the Post Office’s group executive of strategy, Jerel Ruthnam, who said the entity had asked for R2.2 billion in Covid relief from the Government, as well as an additional R4.9 billion in the medium term expenditure framework.
The Post Office went into the Covid-19 pandemic already taking on water, following the departure of its CEO, Mark Barnes, last year. His successor, Lindiwe Kwele, was appointed on an interim basis, but was suspended after only four months. The person that replaced her (also on an interim basis), Ivumile Nongogo, resigned last month, after the board threatened to discipline him over a deal he had reached with the South African Social Security Agency (SASSA) without the board’s knowledge. The deal would have seen the Post Office distribute Covid-19 relief grants on behalf of SASSA.
Parliament also heard that the Post Office would struggle to pay September salaries. It was also told that the Post Office has a delivery standard of less than 40%.
There have been claims of interference in the management of the Post Office by minister of communications, Stella Ndabeni-Abrahams, which have also contributed to the woes at the organization.
Image by Daria Nepriakhina from Pixabay