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  • Post Office lost almost half its revenue and is in “financial ICU”

    Post Office lost almost half its revenue and is in “financial ICU”

    The South African Post Office told Parliament on Tuesday it was improving in its operational efficiency in spite of a decline in revenue. Representatives from the state-owned enterprise told the parliamentarians they still need a cash injection and time to execute their recovery plan. 

    POST OFFICE NEEDS A NATIONAL BAILOUT 

    A Post Office delegation told Parliament’s Portfolio Committee on Communications that the ailing institute direly required financial assistance to keep the doors open as expenses continued to exceed revenue.

    Geert Bataille, Post Office general manager for strategic planning and performance management, says the revenue for the year ending in March 2021 stood at R2.9 billion, a R1.2 billion decline compared to last year.

    Bataille says postal services revenue decreased from R2.8 billion in 2020 to R1.6 billion in 2021, while financial services revenue rose from R1.2 billion in 2020 to R1.4 billion in 2021. 

    Meanwhile, operating costs were reduced by R370 million to R6.2 billion.

    He says Post Office staff costs reduced by R180 million to R3.7 billion, although, staff costs contribute 61% of the operating costs. 

    “The loss for the year increased by R469 million to R2.3 billion,”

    says Bataille.

    From an operational viewpoint, mail delivery performance recovered from 0% during the level 5 Covid-19 lockdown in 2020 to 52.95% by year-end. 

    Bataille told the committee that the Post Office saw a reduction of mail carryover items from 9.9 million items to 5.7 million.

    Another hindrance to operations was the wave of serious and violent crimes including armed robberies, hijackings and heists.

    THE SKOROKORO CAN BE SAVED

    Sipho Majombozi the acting deputy chairperson of the Post Office board told the committee that the state-owned enterprise was still in ICU and needed financial support.

    “We are still in the doldrums and therefore the analogy of a ‘skorokoro’ still holds, of being in the ICU and requesting the intervention of funding and resourcing,”

    Majombozi said.

    Chief executive of the Nomkhita Mona says they should be given some time and funding to turn it around with their “new Post Office of tomorrow strategy”.

    It says it has a turnaround plan in place and hopes to leverage mobile and internet growth.

    READ MORE: Post Office stops R350 grant payment

    View the full article


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