Kimi Makwetu paints bleak picture of Post Office liquidity
The auditor-general is uncertain whether company has ability to continue as a going concern
Auditor-general Kimi Makwetu has raised doubt about whether the SA Post Office (Sapo) can return to profitability in the near future after it unveiled another loss of more than R900m. Sapo, which continues to rely on government bailouts to stay afloat, along with other state-owned entities such as Eskom and SAA, posted a loss of R908m for the year to March 2018. Though this was a marginal improvement on the previous financial year, when it lost R987m, Makwetu painted a bleak picture of Sapo’s financial situation. "The Post Office Group did not generate sufficient revenues to finance its high cost base. These conditions, along with other matters … indicate that a material uncertainty exists on the Post Office Group and [the] company’s ability to continue as a going concern," Makwetu said in Sapo’s annual report tabled in parliament at the weekend. The report suggests the entity will continue to be a drain on the fiscus.
Under former president Jacob Zuma, state-owned entities we...