With the entity running at a loss and bleeding millions in delivery fees, along with allegations of mismanagement, money for beneficiaries hangs in the balance
Post Office insiders have estimated that for every R100 the entity gained from the deal to distribute grants on behalf of the SA Social Security Agency , it was spending R500.City Press has obtained the Post Office income statement for 2019, ending in December. The income statement reveals that “security costs increased by R355 million to R600 million, from R265 million, due to the increased costs for Sassa payments”.
Kekana added: “The Sassa project won by the Post Office has proved to be a loss-making initiative that the Post Office continues to subsidise at its own risk of financial viability, going concern and reckless trading. Also among the options cited were revenue-share partnerships, in which the Post Office was to provide zero investment.
The Post Office recorded a R1.1 billion net loss last year, and the social grants deal was seen as a lifesaver which was to bring a new revenue stream to the struggling entity. But in order to receive the full funding, the Post Office had to adopt stringent austerity measures, such as retrenchments and closing unprofitable branches.The R1 million board fees have caused disgruntlement within the Post Office as it put the staff’s meagre resources under pressure.
“The board also reversed several decisions, such as performance-linked increases – which saw managers not receiving salary increments because the Post Office lost over R1 billion last year. Mabuza said the whereabouts of the missing laptops was the responsibility of the Post Office’s head of IT and head of procurement.
“It will be misleading to construe it as an official Post Office position on any of the discussion points contained in it,” said Diako.
They closed the pay point where our elders meet as their social gatherings once a month and it was very special to them😢 Thank you SAVE SOUTH as banks get R10 rands on each withdrawals..... 🙈😢😢😢😢
Batagilwe Dlamini did warn them
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