Post Office expects R1.3bn loss, may shut shop

2015-02-02 09:19

The South African Post Office expects to report a loss of R1.3 billion by the end of its financial year in March.

For this and other reasons auditors expressed doubts, in the company’s 2014-2015 annual report, that it will still be a going concern by the end of the current financial year, Beeld reported today.

The report was handed in to Parliament last week, four months late.

Fruitless and wasteful expenditure amounted to R41 million, and unauthorised expenditure R213.6 million. It lost R5.3 million to fraud relating to the institution’s treasury, and R5.5 million to “commercial crime”.

In the previous financial year it reported a loss of more than R358 million.

On the positive side the Post Office is still solvent, with its total assets at March 31 last year exceeding its liabilities by more than R2.3 billion.

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