The Managing Director (MD) of Metro Mass Transit Limited (MMTL), Kale Cezar, has revealed that a container loaded with spare parts supplied by Dutch manufacturer VDL has remained at the port for more than two years.
This, he said, had compounded the operational and financial challenges confronting the state-owned transport company.
Speaking in an interview with the Daily Graphic, the MD disclosed that the container was imported under the company’s previous management, but was never cleared from the port, leading to mounting charges and missed opportunities to deploy much-needed buses onto the roads.
“That (container) full of steppers was given to us by VDL Company. Our predecessors actually brought that container,” he explained.
He said that since the matter was brought to his attention, management had taken action to have the container cleared from the port.
This process, he said, involved extensive engagement with state institutions, including the Ghana Revenue Authority (GRA), as management sought to understand why the container had remained stuck at the port for so long and what was required to clear it.
After months of follow-up engagements with relevant authorities and administrative processes, the MD indicated that Metro Mass was now on the verge of clearing the container.
“If government could waive some direct taxes and VAT on our imports, it would greatly help our operations,” he said.
Context
Recent disruption in the public transport space in Accra and Kumasi in particular, has thrown the spotlight on the MMTL, the state intra-city urban transport operator.
While commuters remained stranded on routine routes and had to trek long distances, MMTL could not deploy at optimal capacity because of operational challenges and the poor condition of its buses.
Revenue
Mr Cezar said the previous management had over 185 operational buses, but today, Metro Mass runs between 120 and 130 buses, although revenue has significantly increased.
According to the MD, the previous management mobilised between GH¢8.5 million and GH¢9 million monthly, but even with fewer buses on the road now, the company could mobilise over GH¢15 million monthly.
He attributed this improvement largely to sealing financial leakages, particularly through the expansion of electronic ticketing systems.
“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,” Mr Cezar said.
The wider rollout of electronic ticketing, he explained, had drastically reduced revenue losses that previously undermined efficiency and effectiveness.
Much of the revenue, he said, was currently being used to service accumulated debts, but the company was now able to meet its monthly obligations, including salaries, pension contributions, and structured debt repayments.
Inherited challenges
The MD of Metro Mass said when he assumed office, the company was burdened by severe financial, operational, and welfare challenges.
He disclosed that some workers, including conductors and key frontline staff, were earning as little as GH¢770 a month.
Mr Cezar said management had implemented a 20 per cent salary increase and later set a new minimum wage of GH¢1,300 for the lowest-paid workers.
He said regular salary payments had also been restored, with workers now paid by the third week of each month.
He further revealed that the company inherited massive statutory and non-statutory debts, including unpaid pension contributions, tax arrears, fuel debts, and multiple court judgments arising from breached contracts under previous administrations.
In some cases, Mr Cezar said, penalties exceeded the original principal amounts owed.
Despite these challenges, the MD said, Metro Mass had stabilised through decisive reforms, including the tightening of procurement systems and the near-complete rollout of an electronic ticketing system, which he said had significantly reduced revenue leakages.
Mr Cezar said the current management aimed to position Metro Mass to become an ultra-modern public transport outfit within the next two years.
He said the aim was to grow the company’s fleet to at least 2,000 buses by the end of his tenure.
“People say this is overambitious, but when you look at our operational routes and the huge demand for our services, that is the number required to fully capitalise this company,” he said.
He also revealed plans to establish a fully fledged cargo transport unit to respond to increasing demand from institutions and businesses, adding that the company’s current cargo buses were not fit for purpose.
The MD assured the public that Metro Mass was committed to supporting the government’s vision of a reliable, affordable, and environmentally friendly public transport system.
He said that the President was engaging investors to retool Metro Mass and strengthen public transport delivery.
Mr Cezar said the broader vision was to build a resilient urban transport system capable of supporting the government’s 24-hour Economy policy.
“For a 24-hour economy to work, there must be a 24-hour transport system.
No economy can thrive without an effective and efficient public transport network,” he added.
He reiterated that Metro Mass remained committed to its social mandate of providing affordable transport services, particularly to underserved and low-income communities.
Source:
www.graphic.com.gh
