Report: Post Office blew R2.1billion

WEB_PHOTO_SAPO_270313

Security guards keep an eye on striking Post Office workers at Witspos, a large mail centre in Ormonde, Johannesburg on Tuesday, 26 March 2013.

JOHANNESBURG - The SA Post Office (Sapo) blew R2.1-billion in irregular expenditure in the past financial year, The Star reported on Thursday.

The financial losses were as a result of the irregular awarding of tenders, according to a draft audit report for the financial year ending May 31, 2014, by auditing firms Deloitte & Touche and Nkonki.

The newspaper reported that Sapo was currently operating on an overdraft of R250-million.

The audit outcome is contained in Sapo&39;s 2013/14 annual report, it appears to show that tender procedures were not followed and that pricing and quotations were not done when procuring goods and services.

It shows, among others, that the Post Office"

-- spent R184-million on external consultants;

-- spent R39.6-million on legal costs;

-- spent R114-million on travel expenses, including overseas trips;

-- recorded a net loss of more than R361-million in the year under review; and

-- recorded a net loss of R361.2-million after tax.

The newspaper reported that Sapo was currently operating on an overdraft of R250-million, but its sources disputed the figure and put it at R365-million.

The unnamed sources allege that employees&39; funds were used to redress the overdraft.

- Sapa

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