Philpost losing P200 M annually to privileges of executive, legislative

MANILA, Philippines – Postmaster General Hector Villanueva said yesterday the agency has been losing about P200 million a year for the franking privileges given to the executive and legislative departments.

Speaking at the 110th anniversary of the Philippine Postal Corp., he called on lawmakers and officials of the executive department to stop using the mail without paying postage to prevent the Post Office from going bankrupt.

“They really need to pay for their postage and handling and delivery,” he said. “We are losing P150 million to P200 million a year. It is foregone income.”

Philpost, a government-owned and controlled corporation, is an income-generating agency that fully relies on its income to cover its expenditures, he added.

Villanueva said lawmakers and officials of the executive department can waive their franking privileges.

“There is a solution; franking privileges should be incorporated in their budget to cover postage and handling costs,” he said.

On the other hand, Assistant Postmaster General for Administration Luis Carlos said the franking privileges do not cover “political purposes.”

“I have been with Philpost for three years and this is the first time that I have heard the Postmaster General speak openly about this matter.”

Philpost does not rely on funds from the national government, he added.

However, Villanueva said it is not true that Philpost is dying because of cell phones and the Internet.

“All over the world the post office is considered as the ‘sunshine industry,’” he said.

“All post offices all over the world are deregulated… (But) no post office will survive until we are technology-driven and we are in a hurry to introduce computers.”

Under Republic Act 7354, Philpost is allowed to privatize 55 percent of its operation to receive outside funding for its modernization program. Since 2006, the Japanese company Renaissance of Age (ROA) has expressed interest to infuse P5.6 billion into Philpost.

However, Assistant Postmaster General for Finance Elizabeth Tungol said they are not entirely relying on the ROA deal.

On their own, they are trying to computerize and upgrade their system, she added.

As part of its 110th anniversary, Philpost will launch commemorative stamps of Sen. Benigno Aquino Jr. to mark the 25th anniversary of his death, Villanueva said. – Evelyn Macairan, Serafin Jopel Esmiller III