Philippine government to privatise postal service in 06
THE GOVERNMENT HAS DEcided to privatize Philippine Postal Corp. (Philpost) through a direct sale of government shares as it placed the state-owned firm under the list of major public assets to be sold in 2006.
Another privatization option being studied previously was to offer government shares in Philpost through an initial public offering. Finance Undersecretary Gabriel Singson Jr. told reporters that the privatization through direct sale of shares has been approved by the Privatization Council, which believed it was timely to sell the asset given its recent financial turnaround.
The finance official, who is in charge of the government’s privatization efforts, noted that after accumulating losses, Philpost finally recorded an income in 2004.
Documents showed that the state-owned firm posted a net income of P99 million as revenues rose 3. 2 percent to P3. 67 billion.
“It has successfully been turned around. It is timely to pursue its privatization plan because of its improving finances. The improved financial position was both due to lower operating cost and higher sales,” Singson said.
Philpost was established under RA 7354, or the Postal Service Act of 1992.
Singson said the government would hire a financial adviser to guide authorities in the sale of state assets in Philpost and to determine the exact and proper timing next year when the privatization should be best undertaken.
The Arroyo administration has adopted the policy of privatizing state assets which could be better run by the private sector.
Proceeds from the privatization of state assets would be used to finance various infrastructure projects, which have not been provided sufficient funds because of the government’s lingering fiscal problem.
Singson said the government officially aims to generate at least P500 million next year from its privatization program, although he said fiscal authorities were optimistic that the government could easily breach the target given the number of assets scheduled to be privatized next year.
Aside from Philpost, the list of assets to be privatized next year also included RPN Channel 9, IBC Channel 13 and PNOC-Energy Development Corp.
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