Shutting down Neoplan Ghana will be tragic – Minority

The Minority in Parliament says it will be tragic for Neoplan Ghana to shut down its operations as it is considered a strategic state asset.

According to the Minority, a shutdown 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 says 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.ADVERTISEMENT

“It will be tragic to let Neoplan die or fold up. In the first place, the state owns 65%, and it was a strategic asset as at the time the Joint Venture was established. The Roads and Transport Committee would 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 said this following an announcement that Neoplan Ghana Limited will be shut down 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, 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.”

More About Neoplan 

During the almost 46 years of its existence, Neoplan Ghana Limited has built over 4,000 buses for the government 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.