Cape Town - Auditor -General Tsakani Maluleke has made damning findings against the technically insolvent South African Post Office (SAPO) after it obtained a disclaimer of audit opinion for a third year in a row.
Maluleke said she could not express an opinion on the 2021-22 financial statements of SAPO.
“I was unable to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on these consolidated and separate financial statements,” she said.
Maluleke also said the group and company incurred losses of R2.1 billion for the year ended March 2022.
“Furthermore, at that date, total liabilities exceeded total assets by R4bn.” She said the group and company were further unable to pay their debts as and when they were due.
“The group and the company were commercially and technically insolvent.”
SAPO chief executive Nomkhitha Mona said the entity’s traditional financial sustainability model was no longer fit for purpose.
Mona said during the 2021-22 financial year, there was a continued mismatch between monthly revenue generated and corresponding operating expenditure, resulting in a deficit.
“The SA Post Office has been severely impacted due to the effects of the Covid-19 lockdown, associated business slowdown and the increased rate of digital migration.
“The revenue shortfalls have added further pressure to the already constrained cash flow position of SA Post Office and the achievement of the planned strategies in the corporate plan,” she said.
She blamed the lower-than-projected revenue performance on the lingering effects of the Covid-19 lockdown and the associated business impact.
“The low revenues have further contributed to the non-payment of trade, international, and other payables, including accruals amounting to R4.4bn.
“In addition to the above, a further amount of R2.8bn is owed to Postbank,” Mona said.
Cape Times