Ex CEO of SAPO Mark Barnes Wants to Buy a Huge Chunk of the Post Office, South Africans Find It Suspicious

• Mark Barnes, the former CEO at the South African Post Office, has launched a bid to buy the embattled state-owned enterprise
• Barnes and the consortium he heads want to own at least 60% to 75% of the Post Office and ensure that 10% of the shares will be owned by employees
• South Africans are questioning Barnes' motives and wondering about why he didn't implement his planned changes while he was SAPO's CEO

JOHANNESBURG - South African Post Office's former CEO Mark Barnes wants to come back to save the mailing institution, which has been facing financial troubles for several years. This time around, the entrepreneur does not only want to run the Post Office, he wants to own a huge share.

Barnes was hired as CEO for a five-year term from 2014 to 2019, however, he tendered his resignation before he could complete his tenure. Reportedly, Barnes left the Post Office because politicians could not realise his vision and plans for the future of the Post Office and its subsidiary, the Post Bank.

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According to Fin24, in the financial year 2020/21, the Post Office suffered R1.76 billion in losses. The firm has also skipped payments to the South African Revenue Service and has also not been able to contribute towards its employees' medical aid scheme, owing at least R600 million as result.

Barnes has now written to the Minister of Communications and Digital Technologies Khumbudzo Ntshavheni to propose that a consortium he is heading to buy at least 60% to 75% of the Post Office through a public-private partnership (PPP) arrangement.

Barnes says 10% of the shares will be given directly to the employees of the Post Office. The price the consortium will pay for the Post Office will be determined by the nett asset value minus the projected losses. The consortium will also pump in funds into the Post Office that equal the projected losses.

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Mara Phones smartphone assembly plant goes on auction, SA's first smartphone factory bankrupt

Barnes adds that the Post Office would continue to function as a state-owned enterprise and he wants to head the Post Bank as long as it stays a subsidiary of the Post Office. According to BusinessTech, Barnes wants to be CEO for three years after the Post Office is sold to oversee the transition.

South Africans raise doubts about Barnes' bid

Social media users are a little bit suspicious of Barnes' motives. Some people are wondering why he couldn't see potential in the state-owned enterprise while he was still CEO.

Take a look at some comments:

@Levigos said:

"How does he see potential in an entity that he failed to revitalise while CEO, what was he doing all that time?"

@sbxmc said:

"The circuses in this country are endless. If I knew how to direct films, I'll be releasing a comedy movie every day by just writing about our government and its SOEs."

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@SaaymanBarry said:

"No. Privatising profits and socialising risk is in my opinion unacceptable. Will never support this opportunistic imported way of doing business with the state."

@lar_Crazie said:

"He failed to do all those things when he was there..."

@pete77022741 said:

"The state will never allow it, one less source for them to loot from."

Mara Phones smartphone assembly plant goes on auction, SA’s 1st smartphone factory bankrupt

Briefly News previously reported that Mara Phones, South Africa's first smartphone factory, is up for auction. The assembly plant was established in 2019 and received government support but has failed financially.

Mara Phones' funders took over the factory and put it up for auction in the hopes that it will be bought as a going concern, which would give the plant's employees job security. Job creation was one of the factory's goals when it was established.

Mara Phones was chosen to be the first company considered whenever a government department needed a smartphone supplier. This agreement was set to last until 2026. The smartphone factory was also granted an R100 million tax break.

Source: Briefly News