While the South African Post Office's (Sapo) pending court action against courier companies to protect its...

 

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While the South African Post Office's (Sapo) pending court action against courier companies to protect its monopoly over the delivery of goods weighing less than a kilogram is unlikely to be heard until 2022, the issue has stirred debate about whether or not the floundering SOE should legally be entitled to hold the sole rights to delivering small parcels. Many have questioned how Sapo can be trusted to deliver high-value items such as medicines, passports and cell phones, while others debated measures to circumvent the 1kg restriction, by adding bottles of water or even bricks to boxed deliveries. In terms of Sapo and the Independent Communications Authority of South Africa's (ICASA's) interpretations of the Postal Services Act of 1998, letters and parcels weighing less than 1kg are reserved for Sapo, while unreserved postal services, such as those provided by couriers, can be upwards of a kilogramme. The private courier sector disagrees, saying SAPO is incapable of offering the service and that the act was written with the postal service in mind - never deliveries. 1. Assess the situation of the South African Post office in terms of The Environment of Financial Management. (26 Marks) While the South African Post Office's (Sapo) pending court action against courier companies to protect its monopoly over the delivery of goods weighing less than a kilogram is unlikely to be heard until 2022, the issue has stirred debate about whether or not the floundering SOE should legally be entitled to hold the sole rights to delivering small parcels. Many have questioned how Sapo can be trusted to deliver high-value items such as medicines, passports and cell phones, while others debated measures to circumvent the 1kg restriction, by adding bottles of water or even bricks to boxed deliveries. In terms of Sapo and the Independent Communications Authority of South Africa's (ICASA's) interpretations of the Postal Services Act of 1998, letters and parcels weighing less than 1kg are reserved for Sapo, while unreserved postal services, such as those provided by couriers, can be upwards of a kilogramme. The private courier sector disagrees, saying SAPO is incapable of offering the service and that the act was written with the postal service in mind - never deliveries. 1. Assess the situation of the South African Post office in terms of The Environment of Financial Management. (26 Marks)

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Assessing the situation of the South African Post Office SAPO in terms of the environment of financial management involves analyzing the economic regu... View the full answer