The minister, who was invited to respond to questions on the efforts the ministry was making to get the company to be efficient, said the internal wrangling within the company since mid-2014 hampered its smooth operations.
“The internal wrangling within the company from mid 2014 until January 2015, hampered the smooth procurement of spare parts and tyres leading to about 330 buses being grounded,” she said.
The minister said the company’s plights were further worsened by the Managing Director’s threshold for purchase being pegged at GH5,000 as contained in the Public Procurement Act 663 of 2003.
“This is woefully inadequate for the urgent purchases of spare parts when required. The company is also faced with spare parts inventory management,” she said.
Ms. Attivor said the company had reached an agreement with VDL Bus International of Holland to provide spare parts to rehabilitate the busses with a credit facility of one million Euros with a 60-day grace period for payment.
She told the legislators that an order was placed with the manufacturers on May 8 for the delivery of the parts by the middle of June for the repairs to be done.
“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.
Meanwhile, the minister said the company was procuring spare parts from the local market for some repair works by its maintenance staff, and added that the Public Procurement Authority had given the approval for the company to raise the threshold of the managing director to GH50, 000.
She said an investigation into the operations of the company, identified some procedural lapses and indicated that the ministry had decided to restructure it to improve operations.
By Yaw Kyei