PHLPost board nullifies postal chief appointment

PHLPost Board Nullifies Postal Chief Appointment A Governance Saga Unfolds

Introduction

In a decisive move, the Philippine Postal Corp. (PHLPost) Board of Directors has nullified the election of Michael Planas as postmaster general, citing a violation of its governance charter. This pivotal decision marks a significant turning point in PHLPost's history and underscores the importance of adhering to institutional checks and balances.

The Background

In June 2024, Michael Planas was elected as postmaster general, taking on both roles of chairman of the governing board and chief executive officer. Unfortunately, this move directly contravened PHLPost's Revised Manual of Corporate Governance, which prohibits any single individual from holding both roles concurrently.

GCG Opinion

A legal opinion from the Governance Commission for GOCCs (GCG) supported the board's decision, stating that the policy separating the roles of chairman and CEO is essential to ensure a proper balance of power, greater accountability, and improved oversight. The GCG reiterated that PHLPost must elect a CEO from among the board's ranks, separate from the chairman.

Consequences

As a result of the nullification, all monetary claims and benefits Planas received between June 18 and August 15, 2024, were declared invalid. Additionally, all office orders and corporate issuances he signed during that period were voided.

The Leadership Dispute

This decision was part of a larger leadership dispute that began when Planas, then chairman of the board, moved to unseat acting postmaster general Luis Carlos and install himself in the top executive post. The controversy also involved termination notices issued to coterminous employees loyal to Carlos.

A New Chapter

In response, the PHLPost board convened a special meeting on August 15, 2024, where it reaffirmed Carlos' mandate as postmaster general and CEO. Former Justice Stephen Cruz was subsequently appointed by President Ferdinand Marcos Jr. as chairman of the PHLPost board.

Carlos' Legacy

Under Carlos' leadership, PHLPost has risen from fourth to fifth place in the global postal development index. He also oversaw improvements to logistics, digital infrastructure, and the expansion of the Postal ID program, which benefits thousands of Filipinos, particularly those working overseas.

Conclusion

As we close this chapter, our focus remains on the future – modernizing the Philippine postal system and serving the people with integrity. The PHLPost board's decision serves as a reminder of the importance of adhering to institutional checks and balances, ensuring accountability and transparency in governance.

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Edward Lance Arellano Lorilla

CEO / Co-Founder

Enjoy the little things in life. For one day, you may look back and realize they were the big things. Many of life's failures are people who did not realize how close they were to success when they gave up.