The inefficiency of the Metro Mass Transit (MMT) Limited has been linked to the incessant internal wrangling in the company that has led to over 300 buses belonging to the MMT being grounded.
Ms Dzifa Attivor, the Minister of Transport, Tuesday told Parliament that the squabbles in the company from mid 2014 had taken a negative toll on the efficient and smooth operations of the MMT, dwindling, the fortunes of an otherwise viable state asset.
“The internal wrangling within the company from mid 2014 till January 2015 hampered the smooth procurement of spare parts and tyres, leading to about 330 buses being parked,” she disclosed on the floor of the House, when responding to questions on the efforts being made by the Ministry to get the MMT to be efficient and profitable.
The Minister told the lawmakers that the MMT’s dilemma was worsened with the Public Procurement Act pegging the threshold for purchase by Managing Director’s at GHc5, 000, which is inadequate for the urgent purchase of required spare parts.
Ms. Attivor said the company had reached an agreement with VDL Bus International of Holland to provide spare parts to rehabilitate the buses with a credit facility of 1 million euros, with a 60 day grace period for payment.
She revealed that an order had been placed for spare parts on May 8, and that the delivery is expected to be made by the middle of June for repairs on the buses to be carried out.
“Mr. Speaker, for expeditious repair works, MMT has put in place a rehabilitation plan and the company has commenced discussion with private garages to outsource the rehabilitation works upon arrival of the requisite spare parts, as a temporary measure to bring the buses back on the road,” she said.
The Minister also hinted that, the MMT was procuring spare parts from the local market for some repair works by its maintenance staff, and that, the Public Procurement Authority had given the approval for the company to raise the threshold of the managing director to GH50,000.00.
She said the Ministry had decided to restructure the company, as investigations into its operations had identified procedural lapses in the workings of the MMT. GNA