The South African Post Office blew R2.1 billion in irregular expenditure in the past financial year.
The financial losses were 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, The Star reported today.
The audit outcome is contained in the post office’s 2013-2014 annual report, according to the publication.
The report “appears to show” that the post office did not follow mandatory tender procedures and that pricing and quotations were not done when procuring goods and services.
It shows, among others, that the post office:
» Spent R184 million on external consultants;
» Spent R39.6 million on legal costs;
» Spent R114 million on travel expenses, including overseas trips;
» Recorded a net loss of more than R361 million in the year under review; and
» Recorded a net loss of R361.2 million after tax
The newspaper reported that the post office was currently operating on an overdraft of R250 million, but its sources disputed the figure and put it at R365 million.
The unnamed sources allege that employees’ funds were used to redress the overdraft.