Business News of Friday, 8 June 2012
Ailing State Transport Company (STC) has had its troubles deepened by the management of J.A Plant Plant Pool Ghana Limited, which has grounded ten (10) Yutong buses belonging to STC.
J.A Plant Plant Pool, the sole importer of Yutong brand of passenger buses from China, has locked up the buses for over a month now, demanding that the STC settled all debts owed it before the buses would be released.
The decision by J.A Plant Pool has thus put the already struggling STC into more distress, as the number of fleets owned by the company keeps dwindling due to high cost of operation and poor management. Communications Manager for STC, Cyrus Degraft-Johnson who confirmed to Adom News said STC currently owes J.A Plant Pool about GHC 900,000.
Mr. Degraft-Johnson noted that the STC breached a contract to pay GHC 5,000 daily to offset the debt because of operational problems. However because the company is jointly owned by government and SSNIT, management is in discussions with SSNIT to see how best they can offset the loan.
He fears that more of their buses will be ceased by J.A Plant Pool if the problem is not resolved immediately.