General News of Saturday, 27 July 2002

Source:  

VRA Imports Luxury Vehicles For Senior management

Workers of the Volta River Authority are complaining about the timing of a management decision to purchase new vehicles to augment its fleet, including replacing the two-year old cars for directors. Twenty-nine "S40" Volvo cars have been ordered for the directors, in addition to 70 Terrano 4-wheel drive vehicles, 44 pick- ups and 75 motorbikes. The Authority is spending nearly two million dollars to acquire the vehicles.

The workers who are particularly against the purchase of new cars for management personnel told Joy FM that there can be no justification for the new cars, describing it as frivolous spending.

Director of Resources and Services, Reverend Ishmael Ghansah in an interview with Joy FM refuted the workers assertion, saying the director’s cars should have been overhauled long ago. According to him, the vehicles were ordered three months ago as part of the major rehabilitation and expansion of plants and equipment.

But the disgruntled workers say the purchase of the Volvo is unnecessary because of the company’s weak financial position as has been touted by Chief Executive,Dr. Charles Wereko Brobbey.

According to the workers, the VRA is facing serious cash flow problems, worsened by low tariffs. They also contend that it is the weak financial position that accounted for the freezing of the Staff Provident Fund and staff loans facilities.

Rev Ghansah however says although the Company is still facing financial problems, the vehicles are needed to replace the existing fleet, some of which have become difficult to maintain. "Some of us have been using our cars for about eight years now and need to change them for efficiency."

Since the beginning of this year, VRA, the bulk suppliers of power, has been pushing for increases in tariffs to enable it to recover cost of production. It successfully gained a total 85 per cent hike from a two-step increase in power tariffs announced last Monday by the Public Utility Regulatory Commission effective August 1, this year.