SA Post Office in financial trouble

By Drum Digital
04 September 2014

The SA Post Office (SAPO) has up to R2.1 billion in irregular expenditure from the past financial year.

This as a result of the irregular awarding of tenders, according to a draft audit report for the financial year ending May 31, 2014, by auditing firms Deloitte & Touche and Nkonki.

According to the report, SAPO did not follow mandatory tender procedures and that pricing and quotations were not done when procuring goods and services.

It shows that the Post Office:

 - spent R184m on external consultants;

 - spent R39.6m on legal costs;

 - spent R114m on travel expenses, including overseas trips;

 - recorded a net loss of more than R361m in the year under review;

 - and recorded a net loss of R361.2m after tax

It's also been reported that the post office is operating on an overdraft of R250m.

Sources of The Star, which reported this,  disputed the figure and put it at R365m.

It's also been alleged that employees' funds were used to redress the overdraft.

-SAPA

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