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Business News of Wednesday, 23 August 2023

Source: www.ghanaweb.com

Railway workers fear collapse of Ghana Railway Company Limited

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The Railway Workers Union of Ghana have expressed worry over operating on the existing narrow gauge rail lines, which were in a bad state.

They said challenges in the Ghana Railway Company Limited (GRCL) are also affecting its finances.

Mr Godwill Ntarmah, General Secretary of the Union, at a press conference in Takoradi, said the challenges had resulted in serious financial constraints, which had the tendency to collapse the company.

He said: “The situation easily qualifies the company as a Highly Indebted Poor Company (HIPC).”

According to him, workers have not been paid their salaries for the past three months.

“The Company is owing GCB Bank millions of cedis, while workers’ Tier two Social Security and National Insurance Trust (SSNIT) contributions have also not been settled since May 2022 till date,” he noted.

He further noted that workers’ deductions to their various credit unions like the Ghana Ports and Harbours Authority (GHPA), and Rucomas Credit Unions had been in arrears since September 2021.

Mr Ntarmah said: “… All that we hear is the GRCL is a limited liability company, and therefore, should be able to work and generate enough to fund itself. This we disagree because with the challenges enumerated earlier, it is impossible for the company to generate enough funds to sustain itself and to operate.”

He indicated that though the standard gauge rail line construction on the western line from Kojokrom to Huni Valley was progressing steadily, more efforts were needed to enhance operations within the railway sector.

The workers, therefore, appealed to various authorities, including the President, to forge collaborations and devise pragmatic measures to resolve all underlying issues to help save the GRCL from collapse, he stated.