Post Office reports R978m loss in last financial year

THE SA POST Office (Sapo) continues to bleed, with the entity posting a loss of R978 million in the 2016/17 financial year.

This, however, was a 13 percent improvement from a loss of R1.1bn the previous financial year.

In its financials tabled in Parliament yesterday by the Minister of Telecommunications and Postal Services, Siyabonga Cwele, Sapo said it was not out of the woods yet.

Acting Sapo chairperson Comfort Ngidi said it had cash constraints and did not have sufficient working capital.

He said the Department of Telecommunications and Postal Services gave them funding for the current financial year to stay afloat.

The Post Office was arranging working capital of R400m.

“The Department of Telecommunications and Postal Services allocated R650m in the 2017 financial year for the capitalisation of Sapo.

“The government has issued Sapo with a government guarantee of R4.17bn and R3.7bn utilised to acquire external funding,” said Ngidi.

“The cause of the deterioration of the group’s liquidity position is both due to internal and external factors,” said Ngidi.

He said Sapo had been tasked with managing the distribution of set-top boxes and antennae for the broadcasting digital migration project, and was allocated R240m in the 2017 financial year, with a further allocation of R240m in the 2018 financial year.

Sapo said that it would continue to operate as a going concern, based on its strong financial position with its assets exceeding its liabilities by R1bn.