The South African Post Office Faces Dire Financial Crisis: Can Former CEO Mark Barnes Save the Day?

• South Africans are urging the sale of the SA Post Office to former CEO Mark Barnes to prevent its impending collapse
• SAPO's liabilities have soared to R12.5 billion while assets sit at just R4.5 billion, rendering the entity technically insolvent
• Netizens express their frustration and concerns on social media, urging the sale of SAPO to Mark Barnes as a potential solution to the ongoing crisis

SOUTH AFRICA - South Africans are calling for the South African Post Office to be sold to former CEO Mark Barnes to save the entity from collapse. The government entity is facing major financial woes, with suggestions of a total closure looming.

The company's liabilities have reached an all-time high of R12.5 billion, while its assets on the other hand are sitting at just R4.5 billion. This means that the entity is technically insolvent, with a negative equity of R7.9 billion, reports SAPO Business Rescue Practitioners as reported MyBroadband.

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The post office was doing exceptionally well under former CEO Mark Barnes' three-and-a-half-year service at the top. When he joined the entity at the beginning of 2016, the organisation had an equity of R10 billion. Under him, the enterprise increased its balance sheet to R16 billion.

That was short-lived, however, as when he left, the assets declined drastically from R16.07 billion to R4.5 billion, leaving it in debt.

Call for Mark Barnes to buy SAPO

In a Facebook post by MyBroadband, netizens voiced their opinions, with most calling for SAPO to be sold to Barnes.

Below are some of the reactions:

Abe Mkhize commented:

"Criminal comrades are doing well on that front."

Andrew Somerville said:

"You seem surprised. Sell the Post Office to Mark Barnes before it’s too late and keep people employed."

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Dawood Williams remarked:

"The last time I set foot in a Post Office was to certify documents and play Lotto, because it is good for nothing else."

Samuel Roelof Van Wyk shared his frustration by saying:

"No different than all the other SOEs, corruption, indifference and theft!"

Curtis Freezy Pienaar lambasted:

"Theft, not collapse, we are not stupid."

SARB orders SAPO to fix security

In a previous report by Briefly News, SAPO was given until December 2023 to fix its security issues that have caused problems with South African Social Security Agency (SASSA) payments and cards.

Irregularities in SAPO's security measures were first detected in February 2019. The Reserve Bank gave them until March 2021 to plug the holes. A major security breach putting the data of millions of SASSA beneficiaries at risk forced Postbank to replace 12 million bank cards at a cost of R1 billion. An extension was thereafter granted to get the entity in order.

Source: Briefly News