It had gotten to the point when the company could no longer pay its workers from its operations and had to turn to the majority shareholder, Social Security and National Insurance Trust (SSNIT). The shareholder had obliged but had treated the financial support as loans.”
The statement said that the company has “a long-standing relationship with parts supplier Richcumba Company Limited which allows for spare parts to be procured on credit. At the end of 2014, the amount owed the supplier was GH¢276,515.70. Purchases made so far this year stand at GH¢21,619.65, bringing the total sum owed Richcumba Company Ltd. to GH¢298,135.35.
It said that the monthly engineering report of Intercity STC for January 2015 indicates that STC used a total of twenty-six (26) buses for it operations though eighteen (18) worked consistently for twenty-two (22) or more working days in the month.
In addition to the company’s own fleet, the statement noted, Intercity STC has entered into alliances with other companies which provide buses to be operated under the STC brand and share the profits that accrue from such operations.
“With the introduction of two 50-seater Mercedes Benz buses from Focus Four Company Limited into service in February, the number of “alliance buses (big coaches) stands at five. Intercity STC has also just introduced its Swift Shuttle Service (started in January) with 25 brand new Toyota Hiace mini buses through an alliance with Smice International Limited based in Accra,” the statement said.
The statement said that contrary to report, “the weekly valuation report for the week from 26th to 30th January, 2015 indicated that valuation of vehicles alone earned Gh¢26,370.00,”
“Plans are far advanced to expand our services this year to include Driver and Vehicle Licensing Authority (DVLA) agency, a commercialized state-of-the-art workshop, computerized valuation service and online/mobile money ticketing. We plan also to transform our non-performing assets into profitable real estate projects. We are determined to achieve this goal by staying focused, taking prudent decisions and rendering tireless service.
What actually attracted SSNIT’s intervention was that a past Board of Directors, not confronted with any court ruling, decided to offer the official residence of the MD to tyres supplier, Caitec Automobile, to offset a GH¢500,000 debt. It was a single case involving one creditor,” the company said.
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