NEWSFLASH

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GOVT FRANKING DRIVING PHILPOST BANKRUPT

Manila, April 19, 1998 - Officials of the Philippine Postal Corporation (Philpost) are planning to ban all franking privileges of government agencies and instrumentalities to recoup their losses.

Philpost spokesman Romualdo Sison told newsmen that franking privileges cost the postal company at least P350 million every year. Franking privilege refers to the sending, free of charge, of mail by government agencies like the courts, Malacanang, Congress, the Senate and other government agencies.

Another measure aimed at ensuring that Philpost earns enough to pay the salaries of its 18,000 workers is to increase postal charges.

The exact rate of increase has not yet been decided, according to Sison. "Nothing is final yet. We only have two options now -- cancel franking privileges or increase postal rates -- and we will have to implement one or the other."

Any money raised will also be used for badly needed computers and mail-sorting machines, to speed up mail delivery time.

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