• 10 tips to find bargains

    Susan Erasmus gives advice on how bargain hunters can get the most bang for their buck.

  • Inside Labour

    Labour's bitter breaches need to be seen in historical context, says Terry Bell.

  • Rich getting richer

    Economists differ on how to tackle the chasm between rich and poor, says Leopold Scholtz.

Loading...
See More

Post Office bungles R107m project

Aug 14 2011 16:34 Mpho Sibanyoni

Related Articles

Post Office, union in recognition row

Post Office faces crippling strike

MPs approve bill to revamp councils

Parliament passes Postbank law

Storm over Post Office's R520m lease

German economy powers ahead

 
Johannesburg - The South African Post Office (Sapo) is continuing to pour millions of rand into a new retail system despite clear evidence that the project is not financially viable, according to a confidential report.

The document, which was tabled in March but which has been kept out of the public eye, illustrates how the R107m project, WebRiposte, has resulted in staff having to pay in money for cash shortages resulting from the new dysfunctional system.

The report says the project:

» Is susceptible to fraud;

» Has software glitches;

» Has overrun the budget by R80m; and

» Should be discontinued.

The WebRiposte system was launched in 2004 to replace the old PostLink, a point-of-sale system used at retail branches of the parastatal to expedite consumer service.

The new system has instead performed worse than the old one. WebRiposte has resulted in several faults linked to cash and cheque management at some branches.

“The system for no given reason will duplicate the transaction with the same date, time and values,” says the report, adding that the problem can neither be fixed nor can the root cause be identified.

“This unfortunately negatively impacts on employee morale as Sapo requires that employees pay in money for cash shortages.

“If the current trend continues, employees will be paying several hundred rands for system errors because the cash management function is not working correctly.”

When the mailing and banking parastatal launched WebRiposte, Sapo had budgeted R110m for the project. The goal was to roll out the system at 1 567 branches across the country.

However, Sapo has spent R107m on the project and only managed to roll out WebRiposte at seven outlets in seven years.

Sapo also took the decision to inject an additional R80m into the project and extend the deadline from 2007 to 2012.

- City Press
post office  |  sapo

NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
30 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

Brought to you by BizNews

More from BizNews

We're talking about:

SMALL BUSINESS

Johannesburg has been selected to host the Global Entrepreneurship Congress in 2017. "[The congress] will ensure that small business development remains firmly on the national agenda and the radar screen of all stakeholders, the Small Business Development minister said.
 
 

10 most expensive cars In the world

This is car porn at its best!

 
 

Luxury living

Seven of the most expensive children's toys ever made
5 millionaires turned murderers
The youngest billionaires in the world and how they made it
Watch: Flying first class has never been this luxurious!

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

How do you see your boss? He/sheis:

Previous results · Suggest a vote

Loading...