Railways Corp. Defaults in Property Rates for 14 Years

The Ghana Railways Corporation (GRC) has been exposed as having defaulted in the payment of property rates to the Kumasi Metropolitan Assembly (KMA) over the last 14 years.

KMA sources say the GRC owes the Assembly millions of cedis arising out of the non-payment of annual property rates since 1989 in spite of countless demand notices.

GRC is currently litigating over the payment of ground rent and the allocation of stores being developed by the KMA for which the GRC would want the KMA pay ground rent to it because the project is situated on the corporation's premises.

Officials of GRC would also want that KMA to allocate 10 of the stores to the corporation which request was tendered by the Area Manager on July 10, this year at a meeting with the KMA Boss.

But KMA Chief Executive Mr. Maxwell Kofi Jumah has rejected GRC's request saying it is impossible for KMA to accede to the request resulting in an impasse.

"KMA, by law, does not pay ground rent in Kumasi and that any such demand to that effect is illegal," Jumah announced his position.

MCE Jumah also declined to allocate 10 stores to GRC because KMA also had to satisfy its protocol list. Believing that the officials made the request in their personal capacities, Jumah has intimated KMA's intention to negotiate with the corporation's managing director for appropriate compromises instead of dealing with the officials locally.

The positions of the two sides have bred hostilities culminating in an impasse for which both sides want ministerial committee to be set up to probe the wanton release of GRC lands to private developers (particularly KMA in this case).