The ownership issue of the former State Transport Company has been finally put to rest with the assertion from the Social Security and National Insurance Trust that the management contract it entered into with James Owusu Bonsu, Managing Director of Vanef Consortium for the day-to-day running of the fleet of buses and bulk haulage firm, would expire at the end of May, this year.
The two-year contract between Vanef Consortium, owners of Vanef-STC and James Owusu Bonsu, head of the management team took effect on 1 June 2000 and expires on 31 May 2002. The Public Affairs Director of SSNIT, Osei Bimpong told Weekend Agenda that the board of SSNIT, which owns 92.5 per cent of Vanef-STC, would take a decision next month whether or not to renew the contract.
Officials of both SSNIT and Vanef are cagey on the performance of Vanef-STC under the leadership of Owusu Bonsu but Agenda sources in the former state-run transport company hint of pre-tax profit of nearly ?13bn most of which has gone to service debt, outstanding from the era of the State Transport Company.
This impressive performance notwithstanding, Weekend Agenda has gathered that the bid for management of Vanef-STC at the end of May will no longer be a one-horse race because some management groups have showed interest to compete for the contract to manage the company.
One of the sticky issues to be tackled when the SSNIT board meets to decide on the fate of the current management of Vanef-STC would be the removal of the acronym ‘Vanef’ from the corporate name of the transport company. Vanef is derived from Vanessa, Emmanuel and Francis- the names of the three children of James Owusu Bonsu, Managing Director of Vanef-STC.
Weekend Agenda investigations have revealed that the name Vanef-STC was inscribed on the buses because at the time SSNIT acquired the company, the Vanef Consortium, which originally bid to buy the State Transport Company had already registered the company as Vanef-STC.
A member of the management team of SSNIT who spoke on condition of anonymity assured the public that SSNIT would take the necessary steps to ensure the removal of the name ‘Vanef’ from the fleet of buses. The company is likely to be called STC Company.
Asked why SSNIT contracted the Vanef Consortium to manage the company, the source explained that the agreement between Vanef and SSNIT was not an isolated case. He said SSNIT has several investments across the country but is not directly involved in their management. “What we plan to do is to appoint competent and trusted personnel to key positions such as director of finance. The current director of finance of Vanef-STC was appointed by SSNIT. So there is no cause for alarm,” the source said.
Meanwhile, Chris Wolsen, a financial analyst has praised SSNIT for the debt-equity swapping it struck with the Divestiture Implementation Committee. In a letter to Public Agenda published in the 15-21 April edition, Wolsen said: “It is a prudent investment which should be managed well, so that the loans that were guaranteed are paid off.”
Wolsen said once the SSNIT Board has ratified the transaction, the issue should be laid to rest. “I am of the view that the decision to sign a management agreement with the resent managing director of Vanef-STC was also a good decision. What is important is that SSNIT should ensure that it controls the board and prudent management policies are implemented to keep the company afloat, Wolsen said.
