“Post Office on path to financial recovery” – Acting Group CEO
JOBURG– Acting Group CEO for South African Post Office says they are on a road to recovery amid allegations that they are on a financial meltdown.
While political party Congress of the People (Cope) has raised their concerns about the financial meltdown at the South African Post Office (Sapo), acting Group Chief Executive Office (CEO) for the institution Mlu Mathonsi said they are on the path to recovery. “Though the SA Post Office is making steady progress toward an improved position, we are currently facing a difficult financial situation,” explained Mathonsi.
According to Cope, most suppliers to Sapo presumably have not been paid since August last year. “It is shocking that eight months down the line government has not yet resolved the situation. It is even more shocking that government has not been transparent about the financial problems at Sapo,” said Cope spokesperson Dennis Bloem. For the Sapo, all this is work in progress, “The turnaround will take a while to yield material change, but we are on the path to recovery. We are engaging individual suppliers according to a payment plan that is tied to our cash-flow situation,” affirmed Mathonsi.
According to Bloem, some of the major suppliers are threatening action. “Two companies that operate sorting machines are unwilling to continue operations. Smaller suppliers who had stopped supplying Sapo some time ago, are impatiently waiting for payment,” carried on Bloem.
He said his party calls on government to ensure that suppliers are paid, stating that the failure at Sapo should not pull other businesses down.
Bloem also said his party calls on government to ensure that the public is made aware of the full extent of the financial problems at Sapo.
