Corporate Governance vs Profitability. ABC Transport plc.
October 25th, 2008 Ogbuotobo Chuks || chuks@stockmarketnigeria.com
A recent visit to ABC Transport plc a couple of weeks ago sparked some serious concerns in my head that i believe all investors should seriously consider. I believe that what i experienced, although not for the first time is such that most other people go through on a daily basis. My ordeal is detailed below.
I was at the company branch in Owerri, Imo state to courier a parcel to my friend in Abuja. The price list pasted on the wall boldly indicated that documents to be sent would amount to N750 seven hundred and fifty naira). The young man attending to me boldly said that my fee was N1290 and even neglected me when i complained. I was then forced to move on to another attendant who attended to me.
The new guy this time told me that my fee was N1290 (because he heard when transpired initially with his colleague) but also boldly said he would do me a favor by collecting N750.I payed the fees only to be alerted as i turned to leave that i had to pay for the envelope to be sealed with cello tape. In order to save my time, i paid and left.
As i left, i asked myself the following questions:
Is ABC plc not a public company that is supposed to have a price standard and ensure that it is strictly adhered to?
Did the company not raise funds from the public to boost operations?
Since when did courier companies start asking customers to pay for ceiling of goods after collection courier charges from them?
Are the station managers not aware of what is happening?
How many customers have encountered such situations and probably left in annoyance?
These were some of the many questions i pondered on which prompted starting this discussion on this blog. It was not the first time i had encountered such attitude from the company courier section but i vowed it would be the last.
In successive parts of this writeup, we would examine what negative impact such actions on the part of company workers have on bottomline profits amongst other things. Please remember to send in you comments, questions and personal experiences to chuks(at)stockmarketnigeria.com
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I had similar experience at the ABC office in Lagos.After the attendant had ascertain the we
ight of what I wanted to send,he added about =N=2500 to the official charge and made me believe that she is doing me favour.After a heated arguement,I told my wife to give her =N=1500 because it was already past 7pm at night and would not want to go back home with the load.
After I left,I felt bad.Not becuase I paid the money but because this happened in a public quoted corporate organization.I have resolved that should such thing ever hapened,I will cause a scene and will not leave until I see the station manager.
It is disappoiting that ABC management could allow such to happen under their nose.
well, i think this is a matter that should be taken seriously. There is a high possibility that the company is loosing customers on a daily basis which would affect profitability.
This is not good for investors because when they start declaring losses,people would be ignorant of the cause.
We should also remember that the transport as well as courier sector is highly competitive in Nigeria.
I really think that if the two complainants had insisted on seeing the station manager or a superior officer, or plain just refused to pay more than the official displayed price, they would have been doing themselves, the country and the company - in which I am an investor a greater service.