Business News of 2014-02-05

Recapitalize Intercity STC – MD

Charles Thomspon, Managing Director of Intercity/STC Company Limited, has called for the recapitalization of the company to help it compete favourably.

In an interview with the media, Mr Thompson said the company currently has 39 buses with 24 buses operating on limited routes in the country.

According to him, the company was facing serious financial challenges.

But analysts have indicated that the operational turf-war between SSNIT and Government over the management and control of the national asset was responsible for its current plight.

He called on shareholders to put more money into the operations of the company or partner other private companies to improve the financial position of Intercity/STC.

He said, “Notwithstanding all these challenges, the corporation is still operating and taking care of its 500 workers. Money is the number one challenge of the corporation as we can’t buy materials and pay suppliers. Mr Thompson explained that the company’s financial position would be improved when new buses are acquired for new routes.

Intercity STC’s indebtedness to its employees last year ignited some industrial agitation which continues to negatively impact on the company’s operations.

A lot of the employees are unhappy because they are unable to feed their families and cater for their health needs.

He therefore appealed to shareholders of the company to tackle the challenges of the company.

Asked whether there had been any merger between Intercity STC and Metro Mass Transport (MMT), he said, “If the MMT has plans to merge with STC, we are still not in the known.”