Cape Town - The SA Post Office and state ICT infrastructure company Broadband Infraco have failed to table their annual reports by the deadline, as both are awaiting the outcome of pleas to the National Treasury for help.
Telecommunications and Postal Services Minister Siyabonga Cwele wrote to Speaker of Parliament Baleka Mbete this week to explain the delays which, as the minister responsible for the entities, he is required to do under the Public Finance Management Act.
Cwele said the boards of the SA Post Office (Sapo) and Broadband Infraco had not been able to sign off on their companies’ audited annual financial statements because the external auditors had “concerns” about both companies’ going concern status.
He said that, once the government and the Independent Development Corporation – had “demonstrated financial support”, the annual reports would be tabled.
Sapo said it needed R480.6m to settle its debts, and had paid only R150m to critical creditors since last month.
Board chairman Simo Lushaba said in Parliament earlier this month financial constraints continued to affect the payment of creditors and functioning of the post office.
The post office admitted recently that some delivery trucks had been stranded without fuel as a result of overdue payments on fuel cards.
Acting chief executive Mlu Mathonsi said Sapo was losing R100m a month and had a funding shortfall of R771m for its strategic turnaround plan.
A Treasury official said in Parliament this week that Broadband Infraco had submitted a request for a R243m guarantee to the Treasury so its auditors could certify it as a going concern. Without the guarantee it would receive a poor audit, and would have to go into business rescue.
Broadband Infraco, expected to run out of cash by December, would use the guarantee to raise funds.
The Treasury had also received a request for R932m in funding for the 2017/18 and 2018/19 financial years, to allow it to continue operating.
The two are among a group of state-owned enterprises, including SAA and Eskom, that are in financial difficulty.
Finance Minister Nhlanhla Nene has committed to funding requirements for Treasury assistance for state-owned entities without incurring more government debt – with the disposal of non-core assets being among his options to make up the difference – but there has been no word about such disposals having taken place.
Nene is to table his Medium Term Budget Policy Statement in just over three weeks. He will be closely watched to see whether he has kept his word, especially in the light of a possible revenue shortfall due to stalled economic growth.
Political Bureau