SA Post Office fingered for R2.1 billion irregular expenditure
The SA Post Office blew R2.1 billion in irregular expenditure in the past financial year, The Star reported on Thursday.
The financial losses were as a result of the irregular awarding of tenders, according to a draft audit report for the financial year ending May 31, 2014, by auditing firms Deloitte & Touche and Nkonki.
The audit outcome is contained in Sapo’s 2013/14 annual report, according to The Star.
The report “appears to show” that Sapo did not follow mandatory tender procedures and that pricing and quotations were not done when procuring goods and services.
It shows, among others, that the Post Office:
- spent R184m on external consultants
- spent R39.6m on legal costs
- spent R114m on travel expenses, including overseas trips
- recorded a net loss of more than R361m in the year under review
- recorded a net loss of R361.2m after tax
The newspaper reported that Sapo was currently operating on an overdraft of R250m, but its sources disputed the figure and put it at R365m.
The unnamed sources allege that employees’ funds were used to redress the overdraft.
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