The South African Post Office has recorded a loss of nearly R1-billion in the first quarter, almost equalling the total from the previous full financial year.
This comes as the state-owned entity’s board is embroiled in a battle with Communications Minister Stella Ndabeni-Abrahams over alleged interference.
The entity’s financial position is so dire it now needs more than R7-billion in additional funding from the government to stay afloat but government is currently facing a record budget deficit and has been trying to stop giving bailouts to state-owned enterprises.
The post office is one of a number of state-owned entities looking to government for assistance.
The SABC, Airports Company of South Africa and Denel have all approached National Treasury for funding.
The Post Office needs the funding for operations, liabilities owed to Post Bank, and severance packages.
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