A ranking member of the Roads and Transport Committee, Governs Kwame Agbodza told Accra-based Citi FM said the company is a strategic asset of the state.
Ghana’s Minority in Parliament says shutting down Neoplan Ghana will be tragic
The Minority in Ghana’s Parliament has said that it will be tragic for Neoplan Ghana to shut down its operations.
He said that since the government is a majority shareholder it has a vital 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.
“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.”
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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