WILLEMSTAD – Curaçao’s postal company C-Post continues to face serious financial challenges despite reporting a profit in 2023. According to a critical assessment by corporate governance advisor SBTNO, the company’s financial position remains highly vulnerable and requires urgent restructuring measures.
The 2023 financial results initially appeared positive, with C-Post reporting a profit of more than ANG 20.7 million. However, SBTNO concluded that the result was largely influenced by exceptional government support rather than by improved operational performance.
A major factor behind the profit was the settlement of historical tax obligations through the compensation mechanism for the postal service’s net cost reimbursement. This involved government support exceeding ANG 23 million.
The situation changed in 2024 when direct support decreased. C-Post recorded a loss of approximately ANG 2.4 million, while its equity position deteriorated further to more than ANG 17 million negative.
According to the assessment, C-Post received around ANG 4.6 million in government support in 2024. At the same time, however, outstanding obligations for unpaid wage taxes, social security contributions and vehicle taxes increased to approximately ANG 7.4 million.
SBTNO criticized this development, stating that the company is effectively financing part of its operations through unpaid government-related obligations.
The advisor also pointed out that the government already carries the pension obligations of C-Post employees, creating an additional financial burden for the public sector.
Although the financial situation remains concerning, SBTNO identified some positive developments. The traditional postal market continues to decline, but new activities such as package delivery, online shopping services and ETOE Wallet Services are showing growth.
The reduction of personnel costs through a smaller workforce has also contributed to improving efficiency.
However, SBTNO concluded that these developments are not enough to secure the company’s long-term future. The advisor recommends that the responsible minister provide C-Post with strict instructions to continue reducing costs and expanding commercial activities.
The company must also develop a revised strategic plan with measurable targets, which should be incorporated into a formal management agreement with the government.