Intercity STC and Metro Mass Transit bus companies are in a financial crisis and have now turned to the government for support. The two bus companies have now lost 60% of their monthly revenue which leaves them unable to pay salaries of over 4000 staff.
There are other major costs such as operational costs and fueling which are also hitting the companies hard. At the moment the buses are carrying half capacity to maintain social distancing guidelines.
According to the managing director of the Intercity STC company Nana Akomea: “Our international operations to Cotonou in Benin, Abidjan in Cote d’Ivoire and Lome in Togo, as well as Burkina Faso, accounting for 40 per cent of our monthly revenue, but we lost all of them because of the closure of the country’s borders. Our international operations to Cotonou in Benin, Abidjan in Cote d’Ivoire and Lome in Togo, as well as Burkina Faso, account for 40 per cent of our monthly revenue, but we lost all of them because of the closure of the country’s borders.”
The managing director added that the company had depleted their reserves since before the start of the pandemic they had just acquired 100 buses. He noted that at the moment it was hard to meet their GH¢ 2.9 million operations costs which include monthly wage bill and operational costs.
On the other side Metro Mass Transit communications manager George Asante said that the company was suffering from massive losses as a result of restricted movements. According to George: “We are in a dire financial situation because of the negative effects of COVID-19 and are struggling to keep and pay workers. The management has, therefore, sent a distress call to the government, through the COVID-19 Committee, for support, and that is how workers are being paid till now.”
MMT was planning to put into use 50 more busses something they have not been able to do because of the current situation.
Intercity and Metro Mass Transit suffer massive losses due to COVID-19 regulations
