Bus company unable to pay its obligations

2. Autobus
An undated photo of a Comprehensive Multiple Transportation Company (CMTC) bus being sanitized. (Photo: CMTC)
AMMAN — The Comprehensive Multiple Transportation Company (CMTC), more commonly known as “Mutakamileh” (integrated, in Arabic) or Autobus, said its assets are insufficient to pay off its obligations of operational expenses, Al-Mamlaka TV reported.اضافة اعلان

The firm attributed its financial situation on the implications of COVID-19, when economic activity came to a virtual standstill as a result of lockdowns.

The government contributes 73.9 percent of the firm’s budget, according to published data on the company’s website.

In its semi-annual data published on the Amman Stock Exchange website, the company said that the lockdown under COVID-19 in 2021 reduced the number of passengers on public transport buses by 50 percent. Consequently, it forced the company to reduce its operating buses for the second consecutive year.

The anticipated cash flow this year is projected to be insufficient to pay the company’s financial obligations as a result of its deficit.

The company’s data showed that the amount requested by the Ministry of Transport for the differences in transport fares and the prices of fuel reached approximately JD12.8 million by the end of June.

A committee formed by the Minister of Transport acknowledged the entitlement of the amount claimed for the differences in transportation wages and the prices of fuel by the company until the end of 2020.

The company’s financial statements revealed its financial situation shifted from accumulated losses, recorded at the end of last year and amounting to approximately JD8.229 million, to a rounded profit of JD245,914 posted at the end of the first half of this year.               

This was made possible by the payment of JD10 million by the government on behalf of the company in a debt settlement with a bank.

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