No Subvention for Railway Company

Metro (lead), April 9/2008

Story: Charles Benoni Okine

The government will not put the Ghana Railway Company (GRC) back on subvention in spite of the company’s financial challenges, Professor Christopher Ameyaw-Akumfi, Minister of Harbours and Railways, has said.
The capital expenditures of the company in terms of rail track and coach maintenance will still be taken up by the government to free some funds for the company to settle other expenses, particularly workers’ salaries.
The minister told the Daily Graphic shortly after inaugurating a seven-member committee of enquiry to look into allegations of financial impropriety levelled against the Managing Director of the company.
His answer was in response to a question regarding the next line of action for the company once it had been clearly established that until the government paid the workers, the company would not be able to do so because of the worsening financial situation of the once vibrant company.
The committee, chaired by Mr A.K. Obbin, Chairman of the Parliamentary Select Committee on Transportation, will also look into the management and operations of the Estate Division of the company, all transfers by management since July 2006, financial regulations of the company in relation to the signing of cheques and any other relevant matters relating to the allegations levelled against the managing director of the company.
The committee, which is expected to complete its work in 21 days, was set up as part of a memorandum of understanding reached between the unionised workers of the company and the ministry after the latter had embarked on a two-month industrial action.
Professor Ameyaw-Akumfi said the company had no excuse for its inability to raise enough funds to take care of whatever salaries there was to pay, and any other expenses.
He said as the strike was over, the company was going to increase the haulage of manganese and bauxite to enable it to generate more funds for its operations.
On the commuter services of the company particularly on the Achimota/Asapotsonaa route that commenced late last year, the sector minister admitted that that shuttle had not been profitable.
He, however, ruled out the possibility of increasing the fares in the interim.
Professor Ameyaw-Akumfi said the company had made some request for financial assistance to enable it to buy some fuel to run its operations and noted that the request was being considered.
Earlier before the inaugurating the committee he said the GRC had the potential for improving the country’s economy.
“Indeed, the advantages to be derived from a functioning, efficient and modernised railway system cannot be overemphasised,” he said, and added: “This explains the significant efforts made by the government to provide financial support to the GRC in spite of the company’s status as a limited liability company.”
Professor Ameyaw-Akumfi called for industrial harmony, saying that “industrial harmony is a sine qua non for any meaningful transformation of the railway system in Ghana”.