South African Post Office still face challenges, Committee hears
The Portfolio Committee on Telecommunications and Postal Services has noted challenges associated with finances and performance at the South African Post Office (SAPO), saying the entity needs to do more in order to regain the lost grounds.
“Perhaps you may even need to go back to basics and prioritise the things that will generate revenue at the post office. There are many competing priorities in the country at the moment, and in light of that the Committee will never vouch for the entity to get any more guarantees from the Treasury. You need to do more with the money you have,” said Ms Mmamoloko Kubayi, Committee Chairperson.
The post office appeared before the Committee on Friday to report on its annual performance and expenditure report for the year 2015/16, in which it reported a revenue loss of R513 million. It also received qualified audit outcome for the third year in a row.
Ms Kubayi advised the Chief Executive Officer, Mr Mark Barnes, that in light of the fact that most of the challenges from the post office emanated from internal systems failure, the CEO needs to make sure that his team of executive and middle managers share his vision. She cautioned him not to be absorbed by the system that failed to produce results at the post office for many years now.
The Committee thus noted Mr Barnes’ response, in which he said the post office is on the right path to make at least R1billion profit by 2018. He said with the right technology and infrastructure, the entity could grow the GDP by 2%.
Ms Kubayi said the Committee will continue discussions with Minister Siyabonga Cwele, for him to encourage his colleagues in Cabinet to give business to the post office.
For media enquiries or interviews with the Chairperson, please contact:
Justice Molafo
Tel: 021 403 8444
Cell: 081 424 7481
E-mail: jmolafo@parliament.gov.za
