Business News of 2014-02-08

STC is bedeviled with financial, managerial challenges

The Intercity/STC Limited, formerly a vibrant public transport company that used to provide joy to travelers to various parts of the country is now faced with financial and managerial challenges.

Mr. Charles Thompson, Managing Director of the company who was supposed to have handed over to the newly appointed managing director in the person of Mr. Samuel Nuama Donkoh by December 1, 2013 is still at post.

Group Captain (rtd) Emanuel Krobea Asante, board chairman and its members are also holding on to power and are supervising the daily operations of the company. The newly constituted board of directors by government had not started work, a Ghana News Agency (GNA) investigation had revealed.

The Social Security and National Insurance Trust has 80 percent shares of the company, while government has 20 per cent shares. At the moment, the company has 39 fleet of buses with 24 of them operating on limited routes in the country.

The company is also going through serious financial challenges and needs an urgent recapitalization to help improve its operations.

A source at the Ministry of Transport said government was collaborating with SSNIT towards a possible take-over of the company, because SSNIT has written to government expressing its readiness to offload its share in the company.

Government has also expressed interest in buying the shares, but is seeking cabinet advice on the issue.

Government and SSNIT had resolved issues militating against the smooth takeover of the company, and that the new managing director and the new board of directors would soon be in office.

Source: GNA
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