Post Office bungles R107m project

2011-08-13 13:56

The South African Post Office ­(Sapo) is continuing to pour ­millions of rand into a new retail system despite clear evidence that the project is not financially viable, according to a confidential report.

The document, which was tabled in March but which has been kept out of the public eye, illustrates how the R107 million project, ­WebRiposte, has resulted in staff having to pay in money for cash shortages resulting from the new dysfunctional system.

The report says the project:
» Is susceptible to fraud;

» Has software glitches;

» Has overrun the budget by R80 million; and

» Should be discontinued.

The WebRiposte system was launched in 2004 to replace the old PostLink, a point-of-sale system used at retail branches of the ­parastatal to expedite consumer service.

The new system has instead ­performed worse than the old one. WebRiposte has resulted in several faults linked to cash and cheque management at some branches.

“The system for no given reason will duplicate the transaction with the same date, time and values,” says the report, adding that the problem can neither be fixed nor can the root cause be identified.

“This unfortunately negatively impacts on employee morale as ­Sapo requires that employees pay in money for cash shortages.

“If the current trend continues, employees will be paying several hundred rands for system errors because the cash management function is not working correctly.”

When the mailing and banking parastatal launched WebRiposte, Sapo had budgeted R110 million for the project. The goal was to roll out the system at 1 567 branches across the country.

However, Sapo has spent R107 million on the project and ­only managed to roll out ­WebRiposte at seven outlets in ­seven years.

Sapo also took the decision to ­inject an additional R80?million ­into the project and extend the deadline from 2007 to 2012.

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Comments have been closed for this article.

Inside News24

 
/News

Book flights

Compare, Book, Fly

Traffic Alerts
Traffic
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.