A recent analysis has revealed that Road Safety Management Limited - RSML and its partners in the controversial compulsory towing contract, will make an estimated $1 billion over the project’s twenty-year duration.
RSML, after the approval of the Ghana Parliament, become the official private sector partner in the implementation of the highly controversial Road Worthy tax policy.
Under the arrangement, RSML will in collaboration with four other companies charge each vehicle owner and motor cyclist in the country a levy ranging from Ghc 20 – 200 annually for the acquisition of a Road Worthy Certificate and in return, mandatorily tow all automobiles that breakdown on the country’s roads.
A recent report by a leading social entrepreneur and President of mPedigree – Bright Simons has it that at the end of the twenty years period of the contract, RSML alongside the other stakeholders will realize a projected profit of about $1billion.
With 85% of the profit stipulated by the contract’s terms to be shared among the four companies, RSML - as an individual player in the deal, is expected to make about $20 million annually and cumulatively; $400 million at the expiration of the project.
The RSML compulsory towing contract has, ever since its introduction, brought government under intense criticism from various sections of the Ghanaian public – particularly, road users; who argue that they should not be compelled by government to use a particular towing service, or pay for a levy they might not necessarily use in the course of an entire year (if their vehicle maintenance are in check).
Some other members of the public also argue that the policy is limited in cases where an automobile breaks down late at night, or at a remote location requiring immediate response from the nearest towing agent (public or private).
Another section specifically the small scale towing service providers in the country are of the view that the policy will effectively put them out of business.
The government on the contrary, has continually justified its decision to award the contracts by asserting that, it will drastically reduce the current high rate of road accidents resulting from broken-down vehicles.