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Mixed views on Post Office turnaround hopes

Fin24 users have mixed views on whether the SA Post Office’s new chief executive officer will be able to help restore profitability at the embattled parastatal.

The South African Post Office (Sapo) revealed in Parliament earlier this week that it has recorded a R1.5bn loss for the 2015 financial year.

In October last year, Sapo also struggled to pay staff salaries, and in 2014 the parastatal endured a crippling months-long strike that resulted in post piling up.

But former banker Mark Barnes, who became Sapo CEO last month, has been roped in to help with a turnaround, and he has spoken of bringing the Post Office back to profitability for the 2018 financial year.

READ: Post Office boss vows to rein in reckless spending

READ: New Post Office boss talks tough on turnaround plan

However, Fin24 users have mixed views about whether anyone can restore hope at the flagging Post Office.

Fin24 user Jerry wrote:

“I honestly don't think the Post office will make a profit by 2018 as envisaged by the CEO, it may take longer because of the maladministration and corruption at top management, the only viable solution is to privatise Sapo and then we will see the difference,” wrote Jerry.

READ: Post Office won't be privatised, says new CEO

Fin24 user Glennic wrote said Sapo won’t experience a turnaround “because the unions run the show”.

Fin24 user Brian said: “With unions and government interference - absolutely no chance whatsoever!”

Fin24 user Antonnetta14 wrote in an email:

“Unless Sapo employees realise that the private sector offers the same service just 100 times better, and that they must improve their services...I don't see any change for the better. Start by taking a mop and clean your workplace, it used to be such a dependable institution and people took pride in what they did. Set some form of performance testing (for every governmental or parastatal institution) and if not up to standard, no work, no job.”

But other Fin24 users are more positive.

Fin24 user Barbara wrote:

“The new CEO of the Post Office inspires me with confidence and I do feel he can pull it off and turn the ailing organisation around. I do hope he gets the backing from government and all the PO staff.”

Fin24 user Montoedie wrote:

“Yes Sapo can and will make a profit only if they have  a good governance of money.”

Fin24 user Nigel wrote:

“Yes, with the right people running it. It must be run as a business and not as a employment facility for thieves and loafers. Years ago the New Zealand post office tried to help but couldn't get the message over to employees that what was in the envelope did not belong to them!! I recently received a letter from England that took 5 weeks to get from London to my PO box in Johannesburg, can you imagine that I would send the reply via the Post Office?”

Fin24 user Wally wrote:

“Yes with Mark Barnes as CEO. This type of guy is needed at other goverment enterprises. CEO of Eskom also deserves a few kudos.”

Finally, Fin24 user Trevor wrote:

“Yes. Barnes will do it.”

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