Ghanaian government intervenes to prevent Neoplan shutdown

The planned shutdown of Neoplan (Ghana) Limited has been put on hold after the Ghanaian government intervened.

Neoplan Ghana Limited

The government intervened because the company decided to shutdown on January 31, 2020, due to the lack of contracts and recurring monthly losses.

After media houses reported the planned shutdown, the Managing Director, Mr Georges Nassar said they met with some government officials.

He said that they agreed to dialogue on the way forward in two months to help revive the company and prevented from closure.

“We received a call from the government. We met them and they were very positive. They want to help, so they asked us to give them two months to sit down to discuss what we can do.”

He added that because the government had stepped in “we are not going to shut down. We have a two-month window period to find the solution”.

Earlier in an interview with Accra-based Citi FM, Mr Nassar had said: “We had a meeting with the Ministry of Trade and they are very concerned about what is happening and they wanted to find a way to fix issues. They are working to solve the issue and the minister himself (Mr Alan Kyerematen) was concerned about the issue.”

“So I strongly believe that they can assist us. They asked us to wait for a while to see what we can do to solve the issue. Yesterday’s [January 28, 2020] meeting was very fruitful. The ministry is doing a perfect job in terms of how to handle this matter.”

His comment is coming after the announcement that Neoplan Ghana Limited will shut down on Friday, January 31, 2020, because it is no longer viable.

A memo addressed to all staff in Accra and Kumasi said the company which was established on December 12, 1974, is no longer viable. The memo cited the lack of contracts and recurring monthly losses as reasons for the shutdown.

According to the company, the last time it was given a government contract was in 2002, which ended in 2010. The contract allowed Neoplan to produce about 450 DAF/VDL buses for the Metro Mass Transit Ltd.

The memo which is dated January 15, 2020, and titled “Closure of Neoplan (Ghana) Limited” was signed by the Managing Director of the company, George Nassar.

It said “Management regretfully informs you that Neoplan (Ghana) Limited will be closing down its branches on 31st January 2020. This is due to the 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.”

Neoplan has built over 4,000 buses for the Ghanaian government in almost 46 years of its existence. The government has a 55% majority stake.

The company can employ over 1000 workers when it is operating fully and running the shift system of production.

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

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