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28.01.2020 General News

It Will Be Tragic To Lose Neoplan Ghana – Minority

By News Desk
It Will Be Tragic To Lose Neoplan Ghana – Minority
LISTEN JAN 28, 2020

The Minority in Parliament says it will be tragic to lose Neoplan Ghana Limited which is a strategic state asset.

According to the Minority, closing down the company will not be in the best interest of the country.

A ranking member of the Roads and Transport Committee, Governs Kwame Agbodza in a Citi News interview said, the government as a majority shareholder has a role to play in ensuring that the company is kept afloat.

He added that the parliamentary committee on Roads and Transport is ready to look into the company's challenges to avert any imminent closure should the company present a petition.

“It will be tragic to let Neoplan die or fold up. In the first place, the state own 65% and it was a strategic asset as at the time the Joint Venture was established. The road and transport committee will like to look into this. Unfortunately we don't have a petition from the company yet but I think it is not too late. They can petition us, we can look into it and together chart a way forward. That company cannot be allowed to fold up. The right thing for the government to do is as quickly as possible, put the board together.”

The Member of Parliament made the announcement following an announcement that Neoplan Ghana Limited will shutdown on Friday, January 31, 2020 because it is no longer viable.

The company in a memo to all staff in Accra and Kumasi cited the lack of contracts and recurring monthly losses as reasons for the shutdown.

The company said the last time it was given a government contract was in 2002, which ended in 2010 and saw the production of 450 DAF/VDL buses for the Metro Mass Transit Ltd.

Dated January 15, 2020, and titled “Closure of Neoplan (Ghana) Limited”, the memo signed by the Managing Director of the company, Mr Georges Nassar, a copy of which is in the custody of the Daily Graphic, states: “Management regretfully informs you that Neoplan (Ghana) Limited will be closing down its branches on 31st January 2020….This is due to lack of contracts and recurring monthly losses incurred. As a result, all employment contracts with the company will be terminated as of the said date until further notice,” the memo added.

Background

During the almost 46 years of its existence, Neoplan (Ghana) Limited has built over 4,000 buses for the government, which has 55 per cent majority stake, to support the transport sector.

In its heyday, the company gave employment to hundreds of Ghanaians and also offered one of the best options for road transport passenger vehicles.

It is in view of its popularity with Ghanaian commuters that two major bus terminals in Accra and Kumasi, as well as the localities where the company operates from within the two cities, have for a long time been called Neoplan.

The company can employ over 1,000 workers when in full production and running the shift system of production.

---citinewsroom

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