Mr. Bice Osei Kuffour, also known as “Obour,” the Managing Director of Ghana Post Company Limited, addressed the company’s financial loss of GH¢6.17 million in 2020, attributing it to the outbreak of the COVID-19 pandemic. He made these remarks during a public hearing held by the Public Accounts Committee (PAC) of Parliament in Accra.
Significant losses incurred in 2020
At the PAC hearing, Mr. Kuffour responded to issues raised regarding Ghana Post Company in the Auditor-General’s 2021 report. Dr. James Klutse Avedzi, the Chairman of PAC, questioned him about the significant losses incurred in 2020, where the company went from a substantial profit of GH¢995,000.00 to a loss of GH¢6,173,000.00, which was concerning.
Chairman Avedzi pointed out that the operating costs had increased by almost 16 percent and general selling and administrative expenses rose by 20 percent, contributing to the financial decline. He inquired about the current situation and whether it had improved.
The closure of borders led to increased operational costs
Mr. Kuffour explained that as a postal administrator, their operations involve considerable movement of goods in and out of the country, and the COVID-19 pandemic had a significant impact in 2020. The closure of borders led to increased operational costs as they had to rely on airlines instead of vehicles to transport items.
However, he assured the committee that since 2020, the situation had improved considerably. He believed that by the time they appeared before the committee again for 2021 and 2022, the management of Ghana Post would receive commendation for their efforts.
Regarding the fluctuations of the Ghana cedi against major international currencies like the United States dollar, Mr. Kuffour mentioned that it had also affected their business. Nevertheless, with the cedi’s stabilization against other currencies, Ghana Post was back on track and operating more smoothly.