Newspaper article from our research archive:

Post Office at risk over inflated profits.(Business Report Weekend)

BYLINE: Wiseman Khuzwayo

Johannesburg - The SA Post Office inflated its profits for the year to March 31.

This has resulted in a significant risk to the company, the government and the taxpayer, which may well exceed R1 billion, Business Report has established.

The firm inflated its profits on the balance sheet by not including all its potential contingent liabilities. These arise particularly when a company is being sued or is likely to be sued.

What the Post Office has done is in contravention of the international financial reporting standards, with which all South African companies must comply.

This requires that items such as cancelled contracts must ...

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