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This page features the full text of
Republic Act No. 7354
"Postal
Service Act of 1992"
AN
ACT CREATING THE PHILIPPINE POSTAL CORPORATION, DEFINING ITS POWERS,
FUNCTIONS
AND RESPONSIBILITIES, PROVIDING FOR REGULATION OF THE INDUSTRY AND FOR
OTHER PURPOSES CONNECTED THEREWITH.
REPUBLIC
ACT NO. 7354AN
ACT CREATING THE PHILIPPINE POSTAL CORPORATION, DEFINING ITS POWERS,
FUNCTIONS
AND RESPONSIBILITIES, PROVIDING FOR REGULATION OF THE INDUSTRY AND FOR
OTHER PURPOSES CONNECTED THEREWITH.
ARTICLE
I
TITLE,
POLICY, AND DEFINITIONS
Section
1. Title. — This Act shall be
known as the "Postal Service Act of 1992."chanrobles virtuallaw libraryred
Sec.
2. Definitions. — As used in
this Act: chanrobles virtuallaw libraryred
(a) "Corporation"
shall refer to the Philippine Postal Corporation as provided for in
this
Act.
chanrobles virtuallaw libraryred(b) "Letter"
shall refer to a message in writing, which may be in any language or in
code, contained in a sealed or unsealed envelope or not in an envelope
at all, of such physical dimensions and weights allowed by the
Corporation
or the Government, and intended for delivery to a person or entity
displayed
legibly on one of its faces.chanrobles virtual law library
(c) "Mail"
or "mail matters" shall refer to all matters authorized by the
Government
to be delivered through the postal service and shall include letters,
parcels,
printed materials, and money orders.
(d) "Obligations"
refer to all financial liabilities of the Corporation which are
evidenced
by promissory notes, bonds, debentures, mortgages or any other form of
indebtedness.
(e) "Parcel"
means a rectangular box, the dimension and weight of which is as
specified
by the Corporation or the Government containing goods or some form of
transportable
property intended for delivery to an addressee prominently displayed on
at least one (1) of its sides. chanrobles virtuallaw libraryred
(f) "Printed
matter" means the reproduction upon paper, by any process except that
of
handwriting or typewriting, of any words, letters, characters, figures
or images, or any combination thereof, not having the character of an
actual
and personal correspondence.
Sec.
3. Policy and Objectives. — The
delivery of letters, parcels, and other mail letters is a basic and
strategic
public utility which the State shall provide, directly and indirectly
through,
and/or with other duly authorized entities or persons. Accordingly, the
collection, sorting, storage, transporting, and delivery thereof shall
be done with utmost dispatch in the most economical, reliable and
secure
manner that available technology will permit.
chanrobles virtuallaw libraryred
The
State shall pursue the following objectives of a nationwide postal
system:
(a) to
enable the economical and speedy transfer of mail and other postal
matters,
from sender to addressee, with full recognition of their privacy or
confidentiality;chanrobles virtuallaw libraryred(b) to
promote international interchange, cooperation and understanding
through
the unhampered flow or exchange of postal matters between nations; chanrobles virtuallaw libraryred
(c) to
cause or effect a wide range of postal services to cater to different
users
and changing needs, including but not limited to, philately, transfer
of
monies and valuables, and the like;
(d) to
ensure the sufficient revenues are generated by and within the industry
to finance the overall cost of providing the varied range of postal
delivery
and messengerial services as well as the expansion and continuous
upgrading
of service standards by the same.
ARTICLE
II
CREATION,
POWERS AND RESPONSIBILITIES OF THE PHILIPPINE POSTAL CORPORATION
Sec.
4. Creation. — There is hereby
created a corporate body to be known as the Philippine Postal
Corporation,
hereafter referred to as the Corporation, which shall be attached to
the
Department of Transportation and Communications for purposes of policy
coordination.chanrobles virtual law library
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Sec.
5. Responsibilities and Functions.
— The Corporation shall have the following functions and
responsibilities;
(a) to
provide for the collection, handling, transportation, delivery,
forwarding,
returning and holding of mails, parcels, and like materials, throughout
the Philippines, and, pursuant to agreements entered into, to and from
foreign countries;chanrobles virtuallaw libraryred(b) to
determine and dispose of, in a manner it deems most advantageous, with
law and settled jurisprudence, confiscated or non-mailable mail
matters,
prohibited articles, dead letters and undelivered mails, except the
sale
of prohibited drugs, dangerous materials, and other banned articles as
defined by law; chanrobles virtuallaw libraryred
(c) to
plan, develop, promote, and operate a nationwide postal system with a
network
that extends or makes available, at least ordinary mail service, to any
settlements in the country.
Sec.
6. Powers. — To achieve its objectives
and undertake its functions effectively, the Corporation shall have the
following powers;
(a) to
charge fees for postal services to be rendered, receipt the same, and
prescribe
the manner it is to be paid and collected, subject to the provisions of
this Act; chanrobles virtuallaw libraryred(b) to
establish and maintain post offices, postal stations, collection points
and related facilities and equipment of such character and in such
locations
that postal users throughout the Philippines will, consistent with
reasonable
economies of operations, have already access to essential postal
services.chanrobles virtual law library
(c) to
issue and sell postage stamps and other stamped paper, cards, and
envelopes
as it may deem necessary or desirable;
(d) to
issue money orders or checks for transmittal through the mails and
authorize
the issuance of a replacement in cases of lost, stolen, stale, or
destroyed
money order or check; chanrobles virtuallaw libraryred
(e) to
offer a wide array of postal services other than ordinary mail and
parcels,
which, however, shall not be compulsory, discriminatory nor unfairly
competing
with similar private enterprises, such as money order, parcel post,
postal
savings bank, philatelic, and other types of services which are
internationally
accepted as part of postal business;
(f) to
adopt and promulgate such rules and regulations as would improve the
postal
system or implement the provisions of this Act.
Sec.
7. Corporate Powers. — The Corporation
shall have all corporate powers defined under the Corporation Code,
such
as, but not limited to the following;
(a) to
sue and be sued in its official name; chanrobles virtuallaw libraryred(b) to
enter into and perform contracts, execute instruments, and determine
the
character of, and necessity for, its expenditures. chanrobles virtuallaw libraryred
(c) to
determine and keep its own system of accounts following generally
accepted
principles of accounting, as well as the forms and contents of its
contracts
and other business documents;
(d) to
acquire, in any lawful manner, such personal or real property; or any
interest
therein, as it deems necessary or convenient in the transaction of its
business; to hold, maintain, sell, lease, or otherwise dispose of such
property or any interest therein, and to provide services in connection
therewith and charges therefor;
(e) to
construct, operate, lease, and maintain buildings, facilities,
equipment,
and other improvements on any property owned, controlled or leased by
it;
(f) to
accept gifts, donations, bequests, services, or properties, real or
personal,
as it deems necessary or convenient in the transaction of its
business;
(g) to
settle, under such terms and conditions or amounts most advantageous to
it, any claim by or against it;
(h) to
adopt and use a corporate seal;
(i) to
exercise all other corporate powers incidental, necessary, or
appropriate
to its postal business.
Sec.
8. Board of Directors. — The
powers of the Corporation shall be vested in and exercised by a Board
of
Directors of seven (7) members to be elected by the shareholders of
record
at the annual business meeting of the Corporation. Initially and to
organize
the Corporation, the President shall appoint all the members, with the
Postmaster General as one of the members to represent the government
shareholdings.
When the private shareholdings become sufficient to elect at least one
(1) Director, the appointment or election of directors shall be done in
accordance with the Corporation Law with the Secretary of
Transportation
and Communications exercising the right to vote the government shares
of
stocks. The Board shall elect a chairman from among its members. chanrobles virtuallaw libraryred
chanrobles virtuallaw libraryred
The
members of the Board so appointed by the President shall hold office
for
a term of five (5) years each, except of those first appointed, two (2)
members shall have a term of five (5) years, two (2) with three (3)
years,
and two (2) with one (1) year. Thereafter, the appointment shall be in
accordance with the Corporation Law.chanrobles virtual law library
The
Board shall meet regularly once a month and may hold special meetings
to
consider urgent matters upon call of the Chairman or any three (3)
members.
A majority shall constitute a quorum to transact business, and the vote
of at least a majority of the members present at a meeting at which
there
is a quorum shall be valid as a corporate act.
The
members of the Board, except the Postmaster General or his alternate,
shall
receive for every meeting actually attended a per diem not exceeding
the
lowest monthly pay of a regular postal employee, but in no case with
the
total amount received in any one (1) month by each member exceed four
times
(4x) the per diem per meeting. Members of the Board shall be reimbursed
by the Corporation for actual expense, including traveling and
subsistence
expenses, incurred by them in the performance of their duties.cralaw:red
No
member of the Board shall have financial or pecuniary interest,
directly
or indirectly, in any business contract or transaction entered into by
the Corporation or in any privilege granted by it. Neither shall a
member
have any interest, financial or otherwise, in any undertaking or
business
with an inherent conflict of interest with the Corporation. chanrobles virtuallaw libraryred
ARTICLE
III
CAPITAL
AND FISCAL ADMINISTRATION
Sec.
9. Capitalization. — The Corporation
shall have an authorized capital stocks of Ten billion pesos
(P10,000,000,000.00)
divided into forty-five (45) million Class "A" shares and fifty-five
(55)
million Class "B" shares, each voting and with a par value of One
hundred
pesos (P100.00). The Class "A" shares shall be fully subscribed by the
Government or any of its instrumentalities, and may only be owned, sold
to, bought or held by a government entity. The Class "B" shares may be
owned by private entities and sold through tenders, public offerings,
or
the stock market, at such time, price or numbers as may be authorized
by
the Board in accordance with the Corporation Law.chanrobles virtual law library
The
subscriptions of the National Government in Class "A" shares shall be
paid
as follows:chanroblesvirtualawlibrary
(a) the
unexpended balances of appropriations in the current General
Appropriations
Act, Executive Order No. 182 and other acts in force upon approval
hereof,
pertaining to, held or used by, or available to the former Bureau of
Posts,
and its successor Postal Services Office, of the Department of
Transportation
and Communications;chanrobles virtuallaw libraryred(b) the
values of all the existing assets of the Bureau of Posts and its
successor
office, the Postal Services Office, and the various postal facilities
throughout
the country owned by it, to be determined by an independent appraiser
within
a year of the effectivity of this Act;
(c) any
surplus income that may be derived from or accrued to the Corporation
upon
is organization into a corporate body and its assumption of the assets
and liabilities of the Postal Services Office; and chanrobles virtuallaw libraryred
(d) such
amount as may be appropriated from time to time from the funds of the
National
Treasury not otherwise appropriated, including any outlay from the
Infrastructure
Program of the National Government.
Sec.
10. Source of Funds. — The following
shall constitute the sources of funds against which the operating
expenses
of the Corporation may be drawn;
(a) all
revenues from postal and allied services operated or rendered by the
Corporation,
including remittances from foreign postal administrations; chanrobles virtuallaw libraryred(b) proceeds
of grants, donations, disposal of assets and sale of non-mailable or
confiscated
mail matters, loans and other form of indebtedness entered into by the
Corporation;
(c) interest
which may be earned on investments or on idle cash of the Corporation;
(d) drawings
upon the capital or surplus of the Corporation.
Sec.
11. Management of Funds. — The
Corporation may, from time to time, invest any of its funds not
immediately
required to be expended in meeting its obligations or in the discharge
of its functions, in such secured notes, government securities, and
other
negotiable instruments that satisfy the guidelines prescribed by the
Board.
chanrobles virtuallaw libraryred
All
funds of the Corporation shall be deposited in such commercial and
universal
banks as may be accredited by the National Treasurer as depository of
government
funds. The board shall designate the official signatories of the
Corporation
with regards to the deposit or withdrawal of the Corporation's monies
in
such banks. chanrobles virtuallaw libraryred
Sec.
12. Obligations. — The Corporation
is authorized to secure or contract domestic or foreign loans, credits
and other indebtedness, and to issue bonds, notes, debentures,
securities
and other instruments of indebtedness as it may deem necessary to carry
out the purpose of this Act, provided that;
(a) the
outstanding liabilities, and obligations, foreign and domestic, shall
not
exceed, at any time, fifty percent (50%) of its net worth; chanrobles virtuallaw libraryred(b) the
foreign indebtedness can only be contracted with the concurrence of the
Department of Finance, or under such terms and conditions established
by
the Central Bank.chanrobles virtual law library
(c) the
annual amortizations on principal and interest shall not be more than
twenty
percent (20%) of the prior year's gross revenues;
(d) where
appropriate, obligations incurred from private sources of capital may
be
secured by suitable assets or backed by priority claims against
property
of the Corporation.
(e) the
obligations shall be considered the sole liability of the Corporation,
unless otherwise guaranteed by the Republic of the Philippines through
the Secretary of Finance. chanrobles virtuallaw libraryred
(f) issuance
of bonds or long term notes shall be with prior approval of or in
accordance
with the rules issued by the National Treasurer.
Sec.
13. Annual Budget. — The Corporation
shall, every year, prepare and adopt estimates of income and
expenditures
and capital budget of the Corporation for the ensuing year. Unless the
Corporation shall require subsidy and/or a guarantee of its liability
from
the National Treasury, its budget for the year need not to be submitted
to Congress for approval and inclusion in the General Appropriations
Act.chanrobles virtual law library
Supplementary
estimates may be prepared and adopted at any of the Board meeting
called
for that purpose.chanrobles virtual law library
Sec.
14. Exemption from Taxes, Customs,
and Tariff Duties. — The importation of equipment, machineries, spare
parts,
accessories, and other materials, including supplies and services used
directly in the operations of the Postal System, not obtainable locally
on favorable terms, shall be exempt from all direct and indirect taxes,
customs duties, fees, imports, tariff duties, compensating taxes,
wharfage
fees and other charges and restrictions, the provisions of existing
laws
to the contrary notwithstanding.cralaw:red
All
obligations entered into by the Corporation and any income derived
therefrom,
including those contracted with private international banking and
financial
institutions, shall be exempt from all taxes on both principal and
interest.
The
Corporation is also exempt from the payment of capital gains tax, local
government imposts and fees after December 31, 1997; Provided, That it
may offset the full value of the capital investments not otherwise
funded
by the National Government against any income tax due for the same
period.cralaw:red
Sec.
15. Annual Accounts. — The Corporation
shall maintain such accounts and other records under a commercial
system
of accounting on a calendar year basis. The Board shall cause the
publication
of the Corporation's annual statement of income and expenditures,
including
its balance sheet at the end of the reporting period. chanrobles virtuallaw libraryred
The
audited annual statement of accounts of the Corporation shall present a
true and fair value of the financial position of the Corporation and of
the results of the operations during the year to which it relates.cralaw:red
For
completeness of postal statistics, the Corporation shall likewise
record
the quantity of official business mails, and the equivalent revenues
foregone
had the corresponding postage been collected thereto. This shall
include
"franked mail", or mail matter transmitted without payment or postage
under
the autographic or facsimile signature of officials to whom this
privilege
is extended by law, and under such rules promulgated by the Corporation
to prevent the unauthorized use thereof.cralaw:red
Sec.
16. Auditor. — In consonance
with existing laws and regulations, the Commission on Audit shall
appoint
and assign such personnel as may be necessary to audit the accounts of
the Corporation. However, the Board may engage the services of any
person
or firm duly authorized by law for the audit of accounts of the
Corporation
for purposes of complying with its international contractual
commitments
or with the requirements of holders of Class "B" shares.cralaw:red
The
Board shall determine the remuneration, compensation or reimbursement
of
expenses that may be reasonable and appropriate under the
circumstances,
for either or both of the interest and external Auditors mentioned
above.
Sec.
17. Auditor's Report. — The auditor
shall, as soon as practicable, but not later than three (3) months
after
the accounts have been submitted for audit, send an annual report to
the
Board. The Auditor may also submit such periodical or special reports
to
the Board may appear to him necessary, or as requested by the Board.
Sec.
18. Annual Report. — The Board
shall submit to the appropriate regulatory agencies, as identified in
Article
V of this Act, and to both Houses of Congress, together with the
Auditor's
Report on the relevant accounts, an annual report generally dealing
with
the activities and operations of the Corporation during the preceding
year,
and containing such other information as may be relevant in assessing
its
overall corporate performance, particularly statistics about the mails,
parcels, and mail matters handled or processed by it, and indicators of
productivity relating output with the resources used. chanrobles virtuallaw libraryred
ARTICLE
IV
MANAGEMENT
AND PERSONNEL
Sec.
19. Delegation of Authority.
— Except for those powers, functions, or duties specifically vested in
the Board, the Board may delegate the authority vested in it to the
Postmaster
General under such terms, conditions and limitations as it may
prescribe.
The Board may establish committees, with such authority as the Board
determines
appropriate to carry out its functions and duties. Any power delegated
herein shall not relieve the Board of full responsibility for the
performance
of its duties and functions, and shall be revocable by the Board in its
exclusive judgment.
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Sec.
20. Executive Officers. — The
Corporation shall be managed by a Postmaster General who shall be
assisted
by as many Assistant Postmaster Generals as the Board may deem
necessary
for postal efficiency. They shall be natural-born citizens of the
Philippines,
at least thirty five (35) years old, holders of a college degree, of
good
moral character and proven executive ability and competence. Initially
and until such time that issued Class "A" shares do not fall below
sixty
percent (60%) of the total voting stocks, the Postmaster General shall
be appointed by the President; thereafter, the appointment shall be in
accordance with the Corporation Law. At least a majority of the
Assistant
Postmaster Generals must be career postal officials who shall be
appointed,
and may be removed for cause by the Board, upon recommendation of the
Postmaster
General.
The
yearly total monetary compensation, including salary, bonuses, and
allowances
of the Postmaster General and each Assistant Postmaster General, shall
be set by the Board: Provided, That, in the case of the Postmaster
General,
it shall not exceed twenty times (20x) the lowest annual salary of a
regular
employee of the Corporation; and in the case of the Assistant
Postmaster
General, his annual total monetary compensation shall not exceed
eighteen
times (18x) the lowest annual salary of a regular postal employee in
the
Corporation.cralaw:red
Sec.
21. Powers and Functions of the
Postmaster General. — As the Chief Executive Officer, the Postmaster
General
shall have the following powers and functions:
(a) to
represent the Corporation in all dealings with other offices, agencies,
and instrumentalities of the Government and with all other persons and
entities, whether public or private, domestic, foreign or
international; chanrobles virtuallaw libraryredchanrobles virtuallaw libraryred(b) to
sign for and on behalf of the Corporation contracts and debt
instruments
authorized and approved by the Board;
(c) subject
to the approval of the Board, to determine the staffing pattern and the
number of personnel, define their duties and responsibilities, and fix
their salaries and emoluments in accordance with the approved
compensation
structure of the Corporation;
(d) to
appoint, promote, assign, reassign, transfer and remove personnel below
the ranks of Assistant Postmaster General: Provided, That in the case
of
removal of officials and employees, the same may be appealed to the
Board;
(e) to
delegate any of his powers, duties or functions to any official of the
Corporation, subject to the approval of the Board;
(f) to
perform such other functions and duties as the Board may direct.
Sec.
22. Merit System. — The Corporation
shall establish a human resources management system which shall govern
the selection, hiring, appointment, transfer, promotion, or dismissal
of
all personnel. Such system shall aim to establish professionalism and
excellence
at all levels of the postal organization in accordance with sound
principles
of management. chanrobles virtuallaw libraryred
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A
progressive compensation structure, which shall be based on job
evaluation
studies and wage surveys and subject to the Board's approval, shall be
instituted as an integral component of the Corporation's human
resources
development program. The Corporation, however, may grant
across-the-board
salary increase or modify its compensation structure as to result in
higher
salaries, subject to either of the following conditions:
(a) there
are evidences of prior improvement in employee productivity, measured
by
such quantitative indicators as mail volume per employee and delivery
times.chanrobles virtuallaw libraryred(b) a
law raising the minimum wage has been enacted with application to all
government
employees or has the effect of classifying some positions in the postal
service as below the floor wage.chanrobles virtual law library
Sec.
23. Applicability of Civil Service
Law. — All permanent officers and employees of the Corporation below
the
rank of Assistant Postmaster General shall be subject to the Civil
Service
law, rules and regulations so long as the Corporation is majority-owned
by the Government. The hiring of temporary workers or casuals to meet
peak
or seasonal volume or mail matters shall be exempt from the provision
of
this Section.chanrobles virtual law library
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Sec.
24. Prohibition of Strikes, Work
Stoppages and Slowdowns. — In view of the vital nature or postal
services
and its effect on national interests, the officers and employees of the
Corporation are prohibited from conducting strikes, work showdowns or
stoppages,
and such other acts that may disrupt the timely delivery of mail
matters. chanrobles virtuallaw libraryred
Nothing
in this provision shall prevent such officers and employees from
forming
a union or employee association in accordance with Civil Service rules
and regulations and for the purpose of securing changes or improvements
in the terms and conditions of their employment.cralaw:red
Sec.
25. Exemption from Rules and
Regulations of the Compensation and Position Classification Office. —
All
personnel and positions of the Corporation shall be governed by Section
22 hereof, and as such shall be exempt from the coverage of the rules
and
regulations of the Compensation and Position Classification Office. The
Corporation, however, shall see to it that its own system conforms as
closely
as possible with that provided for under Republic Act No. 6758.
ARTICLE
V
REGULATION
OF THE POSTAL DELIVERY SERVICES INDUSTRY
Sec.
26. The Regulatory Authority.
— The exclusive power and authority to regulate the postal delivery
services
industry or those engaged in domestic postal commerce, as provided for
under Presidential Decree No. 240, shall be vested with the Department
of Transportation and Communications (DOTC), and may be delegated by
the
DOTC Secretary to the National Telecommunications Commission. The
regulatory
authority shall have the responsibility of investigating and
prosecuting
postal offenses of postal service establishments, whether civil or
criminal,
and instituting necessary action or proceedings. Nothing in this
Section
shall prevent or limit the Corporation's authority to investigate,
prosecute
or penalize offenses committed by its employees.chanrobles virtual law library
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Sec.
27. Registration of the Postal
Establishments. — The regulatory authority shall:
(a) register
and prequalify any person, natural or juridical, other than freight
forwarders,
who engage in the business of letter and parcel messengerial services,
door-to-door delivery, or the transporting of the property of others
that
are similar to mail or parcel.
chanrobles virtuallaw libraryred(b) upon
petition and public hearing, approve the rate to be charged by the
Corporation
for ordinary mail.chanrobles virtual law library
Sec.
28. Postal Offenses. — The Regulatory
Authority shall exercise the following powers if, in its judgment,
postal
laws have been, are being, or about to be violated;
(a) to
conduct, directly or with the Corporation, and with the assistance of
law
enforcers, searches of any vehicle, vessel or aircraft for stolen mail
matter or any mail matter being transported in violation of law,
whenever
there is reasonable ground to believe that such prohibited mail matter
is contained therein; chanrobles virtuallaw libraryred(b) to
issue search warrants, under the same conditions prescribed for
judicial
officers, authorizing the search of any place not used as a dwelling
for
any stolen mail matter; chanrobles virtuallaw libraryred
(c) with
the help of law enforcers, and through his duly authorized
representatives,
to make arrest and seizure for violation of any postal law;
(d) to
offer and pay rewards for information and services in connection with
violations
of the postal laws.
ARTICLE
VI
TRANSITORY
PROVISIONS
Sec.
29. Abolition of the Postal Services
Office. — The Postal Services Office under the Department of
Transportation
and Communications, is hereby abolished. All powers and duties, rights
and choses of actions, vested by law or exercised by the Postal
Services
Office and its predecessor Bureau of Posts, are hereby transferred to
the
Corporation.chanrobles virtual law library
chanrobles virtuallaw libraryred
All
real and personal properties which upon the effectivity of this Act are
vested in, or owned by, the Postal Services Office are transferred to
the
Corporation without the need of conveyance, transfer or assignment.
Likewise,
all funds, revenues and properties owned by the defunct Postal Savings
Bank, which are not administered by the Philippine National Bank, are
transferred
to the Corporation, provisions of Presidential Decree No. 241
notwithstanding.
The Philippine National Bank is hereby directed to transfer and
turn-over
to the Corporation all funds, revenues, and properties of the defunct
Postal
Savings Bank administered by it, after deducting any liability with
such
assets.
All
contracts, records, and documents relating to the operation of the
Postal
Services Office and its postal field offices are hereby transferred to
the Corporation. chanrobles virtuallaw libraryred
To
ensure smooth transition into a corporate structure, the incumbent
Assistant
Secretary for Postal Services shall continue to hold office and assume
the powers and functions of the Postmaster General under Section 21
hereof
until his successor shall have been duly appointed and inducted into
office.
Officials and employees of the Postal Services Office shall be absorbed
into the Corporation on the basis of merit and fitness: Provided, That
officers and employees who shall be laid-off during the first two (2)
years
of the effectivity of this Act and as a result of the organization of
the
Corporation, shall be entitled to gratuity at the rate equivalent to
one
and one-fourth (1 1/4) month's salary for every year of continued and
satisfactory
service rendered or the equivalent nearest fraction thereof favorable
to
them on the basis of the highest salary received, in addition to the
retirement
benefits or pensions under existing retirement law. Retirement
gratuities
of officials and employees who shall not be retained by the Corporation
shall be for the account of and reimbursed by the National
Government.cralaw:red
Any
of such officers and employees who may later be reinstated in the
Corporation,
or who is rehired in any government office or instrumentality, shall
refund
the unearned portion of gratuity received from the Corporation before
he
shall be reinstated or rehired.
Sec.
30. Appropriations. — To provide
for any extraordinary expenses of the Corporation upon its
organization,
the unavailed portion of the excess of actual operating income over the
estimated expenses of the Postal Service Office, if any, at the time of
the passage of this Act is hereby appropriated for purposes that the
Board
may approve. This shall be considered as part of the paid-up capital
under
paragraph (c) of Section 9 hereof. chanrobles virtuallaw libraryred
For
the purpose of funding the gratuity mentioned in Section 29 hereof, the
amount of Three hundred million pesos (P300,000,000.00), inclusive of
the
amount referred to above, is hereby appropriated out of any funds
available
and not otherwise appropriated in the National Treasury.cralaw:red
Sec.
31. Savings Clause. — All orders,
determinations, rules, regulations, permits, certificates, licenses and
privileges which have been issued, made, granted or allowed to become
effective
by the former Postal Services Office or its predecessor, shall continue
to be in effect according to their terms until modified, terminated,
superseded,
set aside, or repealed.cralaw:red
No
suit, action or other proceeding commenced by of against any officer in
his official capacity as an officer of any division or agency of the
former
Postal Services Office (Bureau of Posts), the functions of which are
transferred
by this Act to the Corporation, shall abate by reason of this Act. In
like
manner, no cause of action by or against such division or agency or by
or against any officer thereof in his official capacity shall abate by
reason of the enactment of this Act. Causes of actions, suits, or other
proceedings may be asserted or against the Corporation or such official
of the Corporation as may be appropriate.chanrobles virtuallaw libraryred
ARTICLE
VII
MISCELLANEOUS
PROVISIONS
Sec.
32. Relationships with Other
Institutions. — (a) In the event the Corporation decides to reactivate
or reopen the Postal Savings Bank after ascertaining its financial
viability
and in response to public clamor, it shall operate such service
without,
as much as practicable, unduly competing with rural, commercial, or
universal
banks. The Corporation shall utilize the facilities of such banks
whenever
convenient and economical, under such terms and conditions as may be
agreed
between the parties concerned. chanrobles virtuallaw libraryred
chanrobles virtuallaw libraryred
(b)The
Corporation shall establish a working arrangement with the Bureau of
Customs
to facilitate the inspection, release or delivery of foreign parcels of
mail matters which may be liable for customs taxes and other import
charges.
It may organize a special unit or designate specific postal branches
for
handling such mail matters. In lieu of assigning it own personnel, the
Bureau of Customs may appoint the Corporation or delegate its customs
and
collections powers thereto, subject to some mutually agreed upon terms
and conditions, including the reimbursements of cost to the Corporation
or the payment for services based on percentage of the amount of tax
collected.chanrobles virtual law library
(c)Any
local government unit may enter into contract with the Corporation for
the use of the former's building, facilities, or land, either gratis or
for a consideration, or for the management and operation by the local
government
unit of a post office or postal branch in its territory.cralaw:red
Sec.
33. Limited Liability. — Unless
otherwise declared and mutually agreed upon at the time posting, the
liability
of the Corporation with respect to its contractual obligations to
deliver
mail matters shall be limited to that amounts or values provided for by
the Universal Postal Union and by international or bilateral agreements
to which the Philippines is a signatory.
Sec.
34. Separability Clause. — If
for any reason, any section or provisions of this Act is declared to be
unconstitutional or invalid, the other sections or provisions hereof,
which
are not affected thereby, shall continue in full force and effect.cralaw:red
Sec.
35. Repealing Clause. — All acts,
decrees, orders, executive orders, instructions, rules and regulations
or parts thereof inconsistent with the provisions of this Act are
repealed
or modified accordingly. chanrobles virtuallaw libraryred
All
franking privileges authorized by law are hereby repealed, except those
provided for under Commonwealth Act No. 265, Republic Acts Numbered 69,
180, 1414, 2087, and 5059. The Corporation may continue the franking
privilege
under Circular No. 35 dated October 24, 1977 and that of the Vice
President,
under such arrangements and conditions as may obviate abuse or
unauthorized
use thereof.
Sec.
36. Effectivity. — This Act shall
take effect thirty (30) days after its approval and publication in the
Official Gazette.
Approved:
April
3, 1992
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