ISTC Boss ordered to proceed on leave

Friday, June 12, 2009 (Page 3)

THE Managing Director of Intercity STC (ISTC) Coaches Limited, Mr Kwame Adjei-Sefah, has been asked to proceed on his outstanding leave pending the outcome of investigations into a transaction he entered into with a car company for the delivery of 13 luxurious buses and accessories.
Mr Adjei-Sefah, who was appointed Managing Director of the company in March 2006, has proceeded on leave since June 8, 2009.
In his absence, the General Manager of Operations of ISTC, Mr Peter K. Kwakwa, has been asked to act.
The transaction which is being investigated was the subject matter of a recent court judgement in which ISTC was ordered to pay £607,740 or its cedi equivalent to Svani Limited, which supplied the ISTC with the 13 luxurious buses and their accessories.
In an interview with the Daily Graphic in Accra yesterday, the acting Board Chairman of ISTC, Brigadier-General Edward Lord-Attivor (retd), said the majority and the minority shareholders of the ISTC had decided that Mr Adjei-Sefah take his outstanding leave pending the outcome of the investigations.
The Social Security and National Insurance Trust (SSNIT) holds 80 per cent shares in ISTC, while the government owns the remaining 20 per cent.
According to Brigadier-General Lord-Attivor, the shareholders had agreed to go thoroughly into the transaction but declined to specifically state the issues to be investigated.
He explained that he did not want to prejudice the outcome of the investigations and stated specifically that they were not been carried out as a result of the court’s judgement.
The Commercial Court, presided over by Ms Margaret Insaidoo, on May 12, 2009 said Mr Adjei-Sefah could not lay his "lapses" on Svani Limited and accordingly awarded £60,000 costs against the ISTC.
It further held that Mr Adjei-Sefah's claim that the buses were to be used for work to raise money to pay for their clearance and then return them to the plaintiff was "surely not a credible position".
However, ISTC filed for stay of execution of the court’s judgement pending the outcome of an appeal filed against the court’s decision but the court, on June 4, 2009, dismissed the application.
It also awarded costs of GH¢500 against ISTC and further ordered the company to pay the cost before pursuing its appeal.
In a related development, the board of directors of ISTC has requested Mr Adjei-Sefah to stop further court action on the case involving Svani Limited, reports Debrah Fynn.
A letter signed by Brig Gen Lord-Attivor and addressed to the managing director said that was for the board to make a critical appraisal on the issues involved and decide on any further action to be taken.
The letter, dated June 4, 2009, a copy of which the Daily Graphic has laid hands on, asked Mr Adjei-Sefah to furnish the acting board chairman with a comprehensive report on the state of the case by Wednesday, June 10, 2009.