Another R1bn loss for Sapo

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PRETORIA – The Post Office continues to bleed.

The South African Post Office (Sapo) says it expects to make a loss of over R1-billion for the financial year ending this month.

This is despite having received R8-billion in government bailouts over the past four years.

“The Post Office took over social grant payments from Cash Paymaster Services two years ago.

And major cost drivers are cash-in-transit and security fees.

“This is not due to losses on the Sassa project,” said Sapo’s Acting Group Ceo, Ivumile Nongogo.

“We had other challenges within the business.”Concern about the sustainability of the company remains.

While the Post Office has not begun discussions on retrenchments, it says it will embark on reskilling staff to increase productivity.

Source:eNCA (https://www.enca.com/news/another-r1bn-loss-sapo)

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