Sa Post Office Ceo Suspension
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Tunica joins Kaya Bizz to break down the story and offers insight on the current state of SAPO.
- The SA Post Office suspended its new interim CEO, Lindiwe Kwele, in December 2019, after just four months at the helm of the struggling state-owned enterprise.
- Kwele was appointed as interim CEO in August last year when form er Post Office CEO Mark Barnes resigned citing differences on a forward strategy in relation to the structure of the group.
- After his resignation, Barnes said there was a competent team in place at the Post Office, led by Kwele, which can still realise the potential of the organisation.
- Kwele first joined the Post Office in June 2017 as Chief Operating Officer. Before that, she was Deputy City Manager for the City of Tshwane Metropolitan Municipality.
- Business Day has now reported that Kwele and Mothusi Motjale, The SA Post Office’s head of the supply chain management division, were suspended on 4 December.
Big losses
- The SA Post Office continues to make big losses, which required the government to give it a capital injection of R2.95 billion over the previous financial year.
- There were, however, positive movements under Barnes. He said in the Post Office’s last annual report that the company was progressing towards profitability.
- He added that the organisation was in a sound financial position, with no external bank borrowings or outstanding National Treasury guarantees. The Post Office’s revenue increased by R897 million (19.8%) to R5.44 billion compared to the previous reporting period. Expenses, however, increased even faster. Total expenses increased by R1.43 billion to R6.78 billion, which resulted in a net loss of R1.172 billion.
- The SA Post Office suspended its new interim CEO, Lindiwe Kwele, in December 2019, after just four months at the helm of the struggling state-owned enterprise.
- Kwele was appointed as interim CEO in August last year when form er Post Office CEO Mark Barnes resigned citing differences on a forward strategy in relation to the structure of the group.
- After his resignation, Barnes said there was a competent team in place at the Post Office, led by Kwele, which can still realise the potential of the organisation.
- Kwele first joined the Post Office in June 2017 as Chief Operating Officer. Before that, she was Deputy City Manager for the City of Tshwane Metropolitan Municipality.
- Business Day has now reported that Kwele and Mothusi Motjale, The SA Post Office’s head of the supply chain management division, were suspended on 4 December.
Big losses
- The SA Post Office continues to make big losses, which required the government to give it a capital injection of R2.95 billion over the previous financial year.
- There were, however, positive movements under Barnes. He said in the Post Office’s last annual report that the company was progressing towards profitability.
- He added that the organisation was in a sound financial position, with no external bank borrowings or outstanding National Treasury guarantees. The Post Office’s revenue increased by R897 million (19.8%) to R5.44 billion compared to the previous reporting period. Expenses, however, increased even faster. Total expenses increased by R1.43 billion to R6.78 billion, which resulted in a net loss of R1.172 billion.
