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Stambuli explains MPC salary delay
By
Our Reporter - 24-06-2002 |
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Information Minister Clement Stambuli has attributed the current problems in the Malawi Postal Corporation (MPC) to the splitting of Malawi Posts and Telecommunications Limited (MPTC) into two entities, MPC and Malawi Telecommunication Limited (MTL).
He also blamed the problem on a premature withdrawal of subvention by the Treasury before the agreed three-year transition period after the de-linking.
Stambuli, who was making a ministerial statement on the delayed salaries in MPC, said in Parliament on Friday the de-linking of MPTC has created financial problems in MPC, saying in the past postal services were heavily subsidised by telecommunications.
“The amount of revenue generated by MPC cannot cover its costs at present since the main source is stamp sales and overseas mail termination where a contra entry arrangement comes into play. Its [MPC] core business is domestic mail, which accounts for 70 percent of revenue,” he said.
Stambuli said the advancement in technology has made MPC business difficult since most people prefer to send messages through other means like the Internet, e-mail and fax.
Said the minister: “Surface mail volumes worldwide have dwindled because of technology advancement and this has in a way affected financial business of postal business.
Stambuli said the premature withdrawal of subvention by the Treasury has also affected the operations of the corporation because it was de-linked on a premise that the gap left by MTL will be filled by submissions from government.
“Treasury unilaterally decided to withdraw subvention as was expected when MPC was not ready to stand on its own as the corporation was still restructuring itself and going through a transition period,” he said.
However, Stambuli said the corporation has embarked on a restructuring process under the auspices of the World Bank, which will, among things, result in purchase of motor vehicles, computers, postal equipment, training and development of its staff to improve its services.
But he said the restructuring programme will also result in more job cuts since the MPC has to size its staff to make it more effective.
According to Stambuli, MPC has 175 post offices of which 118 are loss making.
Post office came under fire from the public early this year when it started delaying salaries for its employees and laid off some 200 workers. |
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