x Abu Dhabi, UAETuesday 25 July 2017

FNC passes draft for Empost and Emirates Post merger

The law brings the combined company under one budget to try to cut costs, said Obaid Al Tayer, the Minister of State for Financial Affairs.

ABU DHABI // The FNC has passed a draft law merging Empost and Emirates Post to form the Emirates Post Group yesterday.

The law brings the combined company under one budget to try to cut costs, said Obaid Al Tayer, the Minister of State for Financial Affairs.

Mr Al Tayer said the companies were split in 2007 when it was thought that the economy would broaden.

A report from the State Audit Institute shows the companies' combined profits in 2009 dropped by nearly Dh15 million, to Dh211m from Dh225.8m in 2008.

Costs were high and money was not used responsibly. More than Dh3m was used to rent vehicles that were never used.

Administration problems at Empost led to the non-delivery of 22,000 Emirates ID cards.

But Mr Al Tayer said the companies made a combined Dh317m last year, all of which was transferred to the federal Government. "This is much higher than other post companies in the region."

FNC members were resistant to rules allowing the merged company to make its own investments and cover its own costs. After three hours of debate, the law was passed.

Mr Al Tayer said the companies handled an average total of 1.5 million deliveries a day.

 

osalem@thenational.ae