South Africa’s Post Office disaster – 400 branches shut down as another state company tanks

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Minister of Communications and Digital Technologies has revealed more post office branches have been shut down amid massive financial problems.

The South African Post Office’s liabilities exceed its assets by a country mile, forcing it to close 80 more post offices nationwide this year, bringing the total closures to almost 400 since 2020.the provisional liquidation order set against it.

The Post Office has blamed several factors for its dire position, including its customers’ migration to digital alternatives and non-payment from suppliers, who have stopped providing services. 22 branches were officially closed during the 2020/21 financial year. In addition, two branches were closed due to landlords’ forced closures because of rental arrears, he said.

The SAPO has been consistently losing taxpayer money for several years, leading to job cuts and branch closures. No Post Office executives in South Africa have been penalised for their use of funds intended for the state-owned enterprise’s recovery initiative.

 

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