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Thu Aug 25 08:21:28 SAST 2016

Post Office’s financial performance expected to improve

TMG Digital | 02 March, 2016 19:20
“The Post Office has great potential to become a leading‚ innovative and profitable state-owned enterprise‚” Rampahosa concluded. File photo
Image by: SIPHIWE SIBEKO / Reuters

It is envisaged that the South African Post Office’s financial performance will improve and stabilise over the next financial year‚ Deputy President Cyril Ramaphosa said on Wednesday.

In reply to a parliamentary question‚ he said the relevant ministers were working together to find workable solutions to address the Post Office's funding challenges. In this regard‚ R650 million had been allocated to the Post Office as part of the 2016/2017 MTEF allocation.

There was also is a new leadership in place at the South African Post Office. A new Board had been appointed‚ comprised of people with the requisite skills and experience to oversee the implementation the turnaround of an institution the government was seeking to modernise. Key executive management positions‚ including the CEO‚ had been filled‚ Rampahosa added.

“The CFO position is soon to be filled. In 2015‚ a Strategic Turnaround Plan was put in place to improve the performance at the Post Office.

“The company has been successful in reducing costs‚ but less successful in boosting revenues. Taking this experience into account‚ the company has reviewed and refined the turnaround strategy to ensure that a business model suited to the changing postal services environment is put in place‚” Ramaphosa stated.

The company was currently in the process of raising the funding it required to pay outstanding debtors and meet its liquidity requirements while executing the turnaround plan. The Inter-Ministerial Committee on state-owned entities‚ working together with the Department of Telecommunications and Postal Services and National Treasury‚ would continue to monitor the implementation of this plan.

“The Post Office has great potential to become a leading‚ innovative and profitable state-owned enterprise‚” Rampahosa concluded.

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