Zampost Master General McPherson Chanda says the company performed admirably last year as compared to the same quarter for the year ended 31st December 2014 in which a loss of K4.67 million was incurred reflecting 138 per performance improvement.
He said the drivers for the good performance were a revenue increase and cost reduction.
“The twin drivers of this favourable performance were a revenue increase of 11% and cost reduction of 15% in comparison to the quarter ended 31st December 2014. The highest monthly operating profit margin was achieved in December at 12%. Management is eager to replicate this favourable performance towards achieving a profitable 2015/2016 financial year,” he said
He added ” For state owned enterprises the concept of ‘profit’ is still largely mystical and yet we attempt to play a role in the economy. The consequences have very much been very harsh as a result. when we are profitable we will have funds to invest in new projects and companies which can create job opportunities for the many unemployed citizens in our country.”
Zampost master General McPherson Chanda has observed that parastatals are heavily encumbered with huge liabilities which comprise trade creditors, unpaid retirees and unremitted statutory obligations.
Mr Chanda also said the mindset in state owned enterprises is that government should be funding to pay for salaries and buy capital items something he said has negative repercussions for both the workers and the institution.
“This is however an irony because the rationale for the government policies that set up state owned enterprises between 1968-1971 was the SOE could be the engine for economic growth. Zampost as SOE acknowledges that when we operate as a loss making organization as we have done over the past 20 years the consequences are adverse for our employees especially when they retire and for our customers who experience poor customer service. We also desire to pay competitive salaries to our staff while they are still working,” said Chanda.