SA Post Office’s financial crisis worsens — it’s now technically insolvent

The SA Post Office (Sapo) has joined a growing list of state-owned entities that have been declared financially insolvent by the Auditor-General because the company is loss-making, cash-strapped, and battles to honour its debt payments when they become due. 

SA Post Office’s financial crisis worsens — it’s now technically insolvent

The Post Office’s financial losses significantly widened during the year to 31 March 2020, extending its money-losing streak to about 14 years. The state-owned entity has recorded financial losses of R1.76bn and its current liabilities exceed assets by R1.49bn.