The Acting Managing Director of Ghana Post James Kwofie has said that the growth of the company is being impeded by a 25 million cedi legacy debt which was accumulated between 2012 and 2016.
He told Accra-based Citi FM that the debt consists of the end of service benefit, provident fund arrears for staff and other statutory requirements.
Mr Kwofie added that the company also owed airline company KLM $800,000 which caused the airline to stop shipping parcels from Ghana Post, until last year when that money was paid.
Ghana Post which used to play a vital role in the lives of Ghanaians sometime back has almost lost its relevance in the past years due to low revenue generation. It was also faced with logistic constraint and lack of IT equipment including computers to boost its operations.
But after the new management took over the company recorded a 25 percent growth in 2017. This followed the rebranding of the company.
Even though they are still rebranding, Mr. Kwofie said the huge debt is affecting their efforts.
READ ALSO: Ban on fishing postponed to 2019
“It is a big burden on us right now. If you have to service a debt that was accumulated about 6 years ago today, then it will definitely drain the business. Money that you are supposed to do reinvestment with is now being used to service past debt. It keeps you stale and doesn’t allow you to move as quickly as you want to.”
Meanwhile, the company is seeking a capital injection of 10 million dollars from the government to revamp its operations.
“Such funding will go into partially legacy debt, Rebranding of the post and the upgrading of infrastructure, products development, and marketing,” Mr Kwofie explained.