Miriam wants Senate to probe P200-M annual losses of Postal Authority

Sen. Miriam Defensor-Santiago wants the Senate to look into the Postmaster General’s report that the Post Office has been losing P200 million annually due to the franking privileges of the executive and legislative departments.

In a resolution, Santiago has quoted a report in The STAR that Postmaster General Hector Villanueva was complaining that the Philippine Post Corp. had been losing a huge amount of money because the legislature and the executive have been using the postal system without paying for the stamps.

“There is an urgent need to investigate this report in order to help Philpost maximize its meager resources, prevent its bankruptcy and determine how to further strengthen laws governing the franking privileges of all branches of government,” read the resolution.

Villanueva reportedly said that government officials should pay for their postage and handling and delivery fees since Philpost, a government-owned and controlled corporation, is relying on its income to cover its expenditures.

Lawmakers and officials of the executive department can waive their franking privileges, and postage and handling costs should be incorporated into their budgets.

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

it was the first time he heard the Postmaster General speak openly about the matter during the Philpost anniversary in November.

Philpost does not rely on funds from the national government, and under Republic Act No. 7354, it is allowed to privatize 55 percent of its operation and receive outside funding for its modernization program.

It was likewise reported that since 2006, the Japanese company Renaissance of Age had wanted to infuse 3.6 billion euros into Philpost. – Aurea Calica