MegaBanner-Right

MegaBanner-Left

LeaderBoad-Right

LeaderBoard-Left

Home » Featured » Post office hasn’t been profitable in about 13 years

Post office hasn’t been profitable in about 13 years

Members of Parliament have heard the Post Office is still not financially stable and is sitting with obsolete technologies and an outdated business model.

The organisation’s new board and management briefed Parliament’s communications committee on Tuesday about its finances and governance.

Earlier this year, the Post Office received a R1.5 billion “public service mandate” or grant from National Treasury.

MPs heard how the Post Office has not been profitable in 13 years, except in 2006 when a profit of R276 million was made.

Since then, the Post Office has suffered from insufficient working capital with costs exceeding revenues.

Post Office chairperson Tshikani Makhubele quoted Finance Minister Tito Mboweni saying the organisation was emerging from a long winter.

“We acknowledge from what we have received to date and the information that ahs been provided to the board that we have not been performing well. Our expenditure continues to exceed revenue, although we’re not indebted, we have obsolete technologies and we have an old business model that needs to be re-looked at.”

She said the Post Office would now work on reviving its public image as well as investing in new technologies as part of its turnaround.

SourceEWN
To enquire about Cape Business News' digital marketing options please contact sales@cbn.co.za

Related articles

From the “On the Contrary” column – Business to the Rescue

“OUR Parliament is a disgrace,” exploded Luke the Dude, rudely disturbing the relaxed banter of the usual comrades in conversation. “Useless!” countered Jon the Joker,...

Post Office’s ongoing financial woes impacting services

The Post Office’s ongoing financial woes are having a crippling impact on the range of services it is expected to provide. Smaller Post Office...

MUST READ

Renewable energy component market will be worth R468-billion by 2030 –...

By Larry Claasen SOUTH Africa’s energy crisis, along with the global move to environmental sustainability has the potential to be a big economic drive, says...

RECOMMENDED

Cape Business News
Follow us on Social Media