Business News of 2014-08-12

SSNIT to auction Railway company’s bungalows

Three bungalows in Takoradi, belonging to the Ghana Railway Company Limited (GRCL), are to be auctioned by the Social Security and National Insurance Trust (SSNIT) to offset the GRCL’s indebtedness to SSNIT.

But the workers’ union of GRCL has appealed to the management and board of SSNIT to reconsider the decision since it could further worsen the financial status of the company.

The union also called on government to intervene in the matter and also set up a national task force to protect properties of GRCL.

The action by SSNIT follows a court order to auction the property to offset part of the indebtedness of GRCL, arising from the non-payment of workers’ SSNIT contributions.

In an interview with the Daily Graphic, the General-Secretary of the GRCL Local Union, Mr Godwill Ntamah, explained that following the dwindling fortunes of GRCL, management of the company had to use the limited revenue received to pay salaries.

In view of that, he explained, focus was placed on payment of net salaries, leaving out some statutory deductions like the SSNIT contributions.

Serious implications

“The auctioning of the bungalows and other assets, if not halted, will have very serious implications for the operations of the company when the rehabilitation of the Western Railway comes on board,” Mr Ntamah said.

He said as much as government was committed to revamping the railway sector, it should ensure that properties of the GRCL were protected and not taken over by individuals or groups of people.

“In view of this, we urgently call on the government to quickly form a national task force to ensure the protection of GRCL lands and properties,” he said.

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