The Courier and Freight Group (CFG), a subsidiary of the South African Post Office (Sapo) which was placed under provisional liquidation in May, is to be incorporated as a division within its parent company. CFG, which operated Sapo’s courier, freight and logistics business, was hit hard in the 2015-16 financial year due to tough competition by rivals and has been loss-making for several years. Sapo group CEO Mark Barnes, writing in the group’s annual report tabled in Parliament on Monday, said the only way to ensure CFG’s survival was for Sapo to incorporate it as a division. The Post Office has been in talks with the provisional liquidators to purchase the business and take over its staff. The approvals required in terms of the Public Finance Management Act have been sought and Telecommunications and Postal Services Minister Siyabonga Cwele has approved the transaction. "CFG now finds itself operating in an extremely competitive, albeit growing market segment and the Post Office’s...
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