Post Office continues ‘on road to ruin’

Picture: Gallo Images/iStockphoto
Picture: Gallo Images/iStockphoto

The South African Post Office’s R1.1-billion loss for the financial year ended March 31 was described yesterday as another milestone on its “road to ruin”.

The state-owned company confirmed in its annual report for 2015-16 that group losses were down to R1.15- billion, from R1.5-billion the previous year.

DA MP Cameron MacKenzie said yesterday that unless urgent steps were taken to introduce profitable public- private partnerships that included the Postbank and the courier and parcels business‚ it would not be too long before funds ran out and the Post Office turned to the government for more bailouts.

In addition to a government bailout of R650-million‚ the Post Office had borrowed its way out of trouble for this financial year thanks to a government guarantee of R2.7-billion‚ MacKenzie said.

“Yet the entity continues to lose on average more than R120-million a month. “By the end of this year‚ about R1-billion of this borrowing [in excess of R3-billion] will have been used to fund the monthly [incomeexpenditure] shortfall.”

It was clear the Post Office was “dangerously close to running out of other people’s money”.

One thought on “Post Office continues ‘on road to ruin’

  • October 7, 2016 at 10:13 am

    The management at the SA Post Office have completely lost touch with reality. Their core business of delivering letters and parcels is completely dysfunctional. Branches vary rarely bother to send out a notifications when there is a parcel to collect, poor delivery times, lost mail and missing parcels just to name a few. but the worst service by far is from the JHB INT MAIL CENTRE. International mail arriving just sits there, sometimes up to 2 months.

    Perhaps Mr. Mark Barnes should stop cleaning post offices and giving lip service in the media and rather do something and fix the JHB INT MAIL CENTRE and delivery times. No wonder they are losing money to courier companies that actually offer great service, which is actually not much more costly that the SA Post Office.

    Mr. Mark Barnes talks about getting back and retaining customers but the reality is they are actually losing customers. I run a successful online retail business and I can tell you that from us using the SA Post Office for 95% of our deliveries a few years back we are now down to using the Post Office for about 10% of our needs, and this figure is still dropping every day. My customers just won’t use the Post Office any more.


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