Business News of Wednesday, 4 October 2017
Source: citifmonline.com
2017-10-04
Some of the vehicles abandoned by the Microfinance and Small Loans Centre (MASLOC)
The Chief Executive Officer of the Microfinance and Small Loans Centre (MASLOC), Stephen Amoah, has told the Host of the Citi Breakfast Show, Bernard Avle that his outfit cannot immediately terminate a contract with MAC Autos & Spare Parts Ghana Limited for the supply of 350 cars although they believe cost was inflated.
He said a termination of the contract, which was signed under the National Democratic Congress (NDC) government, may result in the payment judgment a debt hence the need to critically examine it.
“I don’t want to move beyond the jurisdiction in terms of expertise. There is a legal component of the contract. If I don’t take care and I throw everything away, I can let my government be sued. I don’t even understand whether the contract is right or wrong,” Stephen Amoah said on the Citi Breakfast Show on Wednesday.
He said he has forwarded the contract to the Attorney General and the Office of the President for scrutiny and advice on the next action to take.
“I’ve sent that document to the Attorney General’s office recently; I’ve sent it to the presidency through the Chief of Staff, for them to also give me the legal explanation of the whole contract so that I combine that with my financial knowledge and make a proper decision not out of arbitrariness,” he said.
Stephen Amoah said his checks from the supply company indicated that, the cost per unit of one car as it was sold to the previous management, was far above the average market price.
MASLOC has come under pressure for procuring some 350 vehicles which have been left to rot.
It emerged that, the cars which were meant to be sold on a hire purchase arrangement with the Ghana Private Road Transport Union (GPRTU), were yet to be given to the Union due to the high per unit cost.
Negotiations on the cost of the cars started between GPRTU and the MASLOC under the former Managing Director Sedina Tamakloe Attionu. The change of government and appointment of a new CEO resulted in a break in negotiations and the need for negations under the new management.
The GPRTU executives, however appear to be disunited on political lines as the General Secretary, Alhaji Issa Khalifah claims they are unable to purchase the cars from MASLOC because the new management had added extra cost to the cars.
“Aveo Salon car was given to us at GH¢56,000 and the Spark was given to us at GH¢55,000, and the bus was given to us for GH¢380,000. Elections happened and the NDC lost the elections. Mrs. Tamakloe went away and the new CEO was appointed in the person of Stephen Amoah. Stephen Amoah reviewed the prices and priced the Aveo GH¢ 72,000 and the Spark GH¢ 61,000. The bus was GH¢ 445,000, and it was Stephen Amoah who told us that even if this vehicle was given to us, we cannot pay.”
But the Chairman of GPRTU, Kwasi Kuma, said “The former price the previous government was giving us is the same price that the new administration is negotiating with us.”
Meanwhile, Stephen Amoah has said that his outfit is engaging the car supply company to look at the possibility of renegotiating the contract price, while finding a means of selling the cars to interested parties to prevent them from wasting away.
“I wouldn’t let the cars and the buses to get rotten. I’m trying to, behind closed doors, renegotiate and come to proper terms with the suppliers, and at the same time find a way of improvising the items. It is not like we don’t want to give it to GPRTU or Ghanaians or we want to keep them and see them spoilt.”
