By Daniel Itai, Johannesburg, South Africa
The South African Post Office (SAPO), has conceded that the state-owned entity is in financial distress.
SAPO is in urgent need of US$300 million to stay afloat. The financial woes have also been worsened by the COVID-19 pandemic.
“The Post Office is on it’s knees. The last three financial years have been devastating. Regardless, we can pay our own salaries. We have paid September’s salaries and for October we are working on ensuring that the salaries get paid,” said SAPO’s Acting CEO, Reneilwe Langa.
SAPO has been marred by a lot of irregularities which has seen the state-owned entity having to undergo four CEOs in a space of one year.
Moreover, state owned entities are finding it hard to manoeuvre especially with the advent of the COVID-19 pandemic which has even sent some of the entities into abyss.
South African Airways (SAA), state arms manufacturing company, Denel, and the Passenger Rail Agency of South Africa (PRASA), are amongst some of the state-owned entities that are in financial limbo.