While Government’s policymakers mull over steps to stem the financial haemorrhage at the Transport Board, officials there are so concerned they are now asking the Ministry of Transport and Works (MTW) for advice on what to do next.
According to correspondence from the office of the board’s general manager to the permanent secretary in the Ministry of Transport and Works, dated October 24, at September 30 the accumulated deficit of the public transport provider was over $30 million.
The board has also told the MTW head that it is now “unable to pay wages, salaries and all creditors” because it has fully expended its $10 million bank overdraft, while it had received only $7.5 million of the promised $10.5 million subsidy.
Additionally, the board is concerned that its current financial crisis could be exacerbated if it is unable to cut monthly expenses, noting that it was still awaiting a decision on recommendations that were sent to the ministry for approval on September 16, 2013. (RRM)
