Post Office turning the corner – CEO

THE SA Post Office (Sapo) is making gradual progress and there is light at the end of the tunnel‚ but it remains long.

That’s the message from Sapo chief executive Mark Barnes, speaking yesterday ahead of a briefing to parliament’s portfolio committee on telecommunications and postal services.

The committee received presentations on the first-quarter performance of all the state-owned entities falling under the Department of Telecommunications and Postal Services.

Barnes said confidence was slowly being built up within the post office and that the first quarter results did not truly reflect its current situation, as it only received a R650-million cash injection from the government towards the end of the first three-month period. In the first quarter‚ a net loss of R259million was recorded – a R26-million improvement on the same period in the previous year.

Overall revenue of R1.2-billion was 79% of budget and was 5% (R62-million) lower than the same period in the previous year.

Operating expenditure of R1.4-billion was R298-million below budget and 7% (R110-million) lower than the same period in the previous year.

Revenue was negatively affected by poor service levels due to non-payment of suppliers. The closure of some retail branches also had an effect.

Creditors reduced from R899-million in March to R729-million in June and trade vendors from R382-million to R200-million.

The committee heard that the Reserve Bank has approved Sapo’s first level application for a banking licence for Postbank. The Post Office had also signed a joint agreement with recognised trade unions to settle wages and conditions of employment up to the period ending 2016-17.

Sapo had also secured a three-year loan facility of R3.7-billion from major financial institutions. — BDLive