The Democratic Alliance (DA) reports that the South African Post Office (SAPO) Annual Report for the year which ended on 28 February 2015 has finally been tabled before Parliament, and that “the report is a catalogue of gross financial mismanagement and a criminal lack of control.
The SAPO annual report recorded a R1.45 billion loss which is a 260 percent increase over that of the previous year. That aside, an operating loss of R99 million (69% increase), “fruitless and wasteful expenditure of R95 million” and an irregular expenditure of R576 million were identified in the report.
Check Out: How Much MTN And Telkom Make From You
Yet, the DA “has every confidence that the release of the Public Protector’s report into SAPO will reveal a lot more about the abysmal state of affairs at SAPO.”
Highlighting that only 14 percent of Annual Performance Indicators was achieved and that 67 percent of performance targets could not be measured, the DA declared that attempts to turnaround SAPO is a “mere wishful thinking.”
The foregoing according to the DA, “reiterates the charges of fraud and contraventions of the Companies Act laid against former SAPO CEO Christopher Hlekane and former Board Chairperson Dr Hlamalani Manzini by the DA in October last year.
Total assets have declined by 13% to R9,859 billion, with current liabilities increasing by 7% to 7,390 billion, indicating a going concern.
But when the PostBank’s assets of R6,9 billion are stripped out of the balance sheet, the true picture emerges – that of an entity that is hopelessly insolvent.”
DA further related that “in line with the recommendations of the Presidential Review Commission on State-owned Entities, SAPO must be recapitalized by immediately investigating the sale of PostBank to the private sector, with government retaining a golden share.
That according to the opposition party, “will provide the funds necessary to turn the entity around and place it on a sound financial footing without negatively impacting the country fiscus.”