A cumulative amount of Ghs 42,891,021 was spent by government in 2020 and in January this year on two state-owned transportation companies – Intercity State Transport Company (STC) and Metro Mass Transit (MMT).
Metro Mass Transit was supported with an amount of Ghs 36,552,789 whilst STC was supported with an amount of Ghs 6,338,232.77 in January this year.
According to Caretaker Finance Minister Osei Kyei Mensa-Bonsu, the support to the two state-owned transport companies was to cater for cost of operations particularly salaries of workers as the two firms faced serious financial constraints caused by the Covid-19 pandemic.
“Mr. Speaker, transport workers, drivers and conductors of tro-tros were particularly vulnerable as they work under informal settings, and do not have access to social safety nets. Formal operators also suffered serious financial constraints. Government in 2020 spent GH¢ 36,552,789 as operations and payroll support to Metro Mass Transit for March to December 2020 and supported the Intercity STC with an amount of GH¢6,338,232.77 as of January, 2021,” remarked Mr Kyei Mensa-Bonsu.
Restrictions such as the reduction in the total number of passengers onboard commercial vehicles such as the STC and Metro Mass imposed by the president at the height of the pandemic last year, adversely impacted the profitability of the two transport companies.
In the case of Metro Mass, workers on several occasions embarked on sit-down strikes to demand payment of salaries.
