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Jul 18 2011

Public transportation braces for 'crisis' amid escalating dispute with AutoBus operator

By Khaled Neimat AMMAN - A public transportation company that has recently terminated its operations in the capital recently stood defiant again after the government decided to dissolve its board and appoint an ad hoc committee to run its affairs.

Minister of Transport Mohannad Qudah announced the decision in exclusive remarks to Al Rai daily, published yesterday.

Qudah cited the Companies Law, which allows the ministry to act in case there are concerns regarding the rights of shareholders to fire the board and place handpicked experts to run the company in question for six months.

Al Mutakamilah's publicist, I-Relations, said on behalf of the company that the operator and the Greater Amman Municipality ( GAM ) are bound by a contract and the government's decision has no legal grounds.

However, the company said it had not received any official notification in this regard.

Meanwhile, a source at GAM , which was proceeding on its own track to offset the damage caused by Al Mutakamilah Transportation (AutoBus) Company's move, said there are concerns that the government's decision might disrupt the municipality's efforts to complete what it started.

GAM was due yesterday to announce the names of five bus operators out of 12 bidders invited to operate the 250-bus fleet of Al Mutakamilah, which rejected the municipality's move, vowing not to surrender its facilities to any external party.

The GAM source, who spoke on condition of anonymity, warned of prolonged transportation problems if its move was blocked, especially since the takeover is sanctioned by Article 12 of the Public Transportation Law.

"We need to move fast, and the government is taking us to another direction in this case," he said, announcing that public transportation in Amman will face a major crisis if the situation remains the same any longer.

Al Mutakamilah had blamed GAM for escalating the dispute after the municipality refused to pay the JD4.8 million stipulated in the contract under "financial support".

GAM , for its part, accuses Al Mutakamilah of not honouring the deal, citing as an example the fact that the company operates 191 buses in the capital, which is less than 50 per cent of the agreed upon number under its contract with GAM .

The Public Security Department and private tourism companies have put buses at the disposal of GAM to partially help address the shortage.

© Jordan Times 2011

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