Kale Cezar, the Managing Director (MD) of Metro Mass Transit Limited (MMTL), revealed that the company’s operational and financial problems have gotten worse since a container of spare parts from the Dutch manufacturer VDL has languished at the port for more than two years.
In an interview with the Daily Graphic, Cezar revealed that although the container was imported during the former management of the company, it was never cleared, which led to rising port fees and a delay in the delivery of much-needed buses.
“That (container) full of steppers was given to us by VDL Company. Our predecessors actually brought that container,” he clarified.
He adds that as soon as the problem was brought to their knowledge, management started the procedures to remove the container from the port.
He stated that in order to ascertain why the container had been uncleared for such a long time and what was necessary to enable its release, this needed considerable involvement with state agencies, including the Ghana Revenue Authority (GRA).
Mr. Cezar stated that Metro Mass was getting close to clearing the container after months of follow-ups and administrative processes.
“If the government could waive some direct taxes and VAT on our imports, it would greatly help our operations,” he stated.
The MD pointed out that Metro Mass currently operates between 120 and 130 buses, compared to over 185 under the previous management.
He claimed that revenue had considerably increased in spite of this decrease. He claims that even though there are fewer buses on the road, the company now produces around GH¢15 million each month instead of the prior GH¢8.5 million to GH¢9 million.
Cezar attributed the improvement mostly to the introduction of computerised ticketing systems and the closing of cash leaks.
“They introduced an IT solution for collecting tickets, but it was only (utilised for) about 40 to 50 per cent (of the company’s operations). Now, we are (doing) almost 100 per cent,” Cezar stated.
He clarified that the increased use of electronic ticketing had greatly decreased revenue losses that had previously impacted productivity.
He stated that inherited obligations were being paid off with a large portion of the revenue. Nevertheless, the business could now pay salaries, pension contributions, and structured debt repayments on a monthly basis.
According to Cezar, Metro Mass was facing serious operational, financial, and welfare issues when he took control.
He disclosed that some personnel, such as frontline employees and conductors, made as little as GH¢770 per month. According to him, management raised salaries by 20% and then established a new minimum wage of GH¢1,300 for the lowest-paid employees.
Additionally, regular salary payments have been resumed; employees are now paid by the third week of every month.
The MD also revealed that the firm acquired significant statutory and non-statutory problems, including as fuel costs, unpaid pension contributions, tax arrears, and several court rulings resulting from contract violations during prior administrations.
Source: newsthemegh.com