SA Post Office In Trouble Over R200 Million

Barnes could not give details to the newspaper about how much the company currently owes its creditors.

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JAGERSFONTEIN, SOUTH AFRICA - DECEMBER 31, 2016: The Post Office building in Jagersfontein, a diamond mining town in the Free State Province of South Africa
JAGERSFONTEIN, SOUTH AFRICA - DECEMBER 31, 2016: The Post Office building in Jagersfontein, a diamond mining town in the Free State Province of South Africa (Photo Credit: www.shutterstock.com)

The country’s telecommunications ministry has summoned Mark Barnes, chief executive of the SA Post Office (Sapo) for taking R200 million from the Postbank.

A City Press report stated that the funds from Postbank, a subsidiary of Sapo,  was utilised to pay creditors of the post office.

The ministry spokesperson told the newspaper that the minister was not informed of the transaction in question.

He has summoned the chairpersons, chief executive officers and chief financial officers of Sapo and Postbank to a meeting on Monday, August 20,  said the spokesperson.

Barnes told City Press the money did not belong to depositors and that no lines were crossed.

He added that such transfers has no effect on either the capital adequacy ratio or any requirements imposed by National Treasury regarding the deployment of the assets in the Postbank division.

The post office is under financial strain and, just two months ago, was facing legal action from eight suppliers which, collectively, were owed a total of R101 million.

Barnes could not give details to the newspaper about how much the company currently owes its creditors.

The parastatal recorded a net loss of R142m in the year ending June, despite having raised R4.8bn in funding over the past three years which went to paying its creditors backlog.

According to a confidential document outlining the company’s financial state – signed by Barnes and the group chief financial officer, Jabulani Dlamuka – the company is far from being financially healthy.

The document, dated June 28, which City Press has seen, also hints at the transfer which was done earlier this month.

For more readSA Post Office in hot water over R200m Postbank transfer

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