A pressure group, Concerned Voters Movement (CVM), has urged President Nana Akufo-Addo to support Neoplan Ghana Ltd and stop the company from closing down.
“Government has an obligation towards Ghanaians. The Government cannot continue to rely on the importation of Chinese, Korea and Indian buses at the detriment of Neoplan (Ghana) Limited, a 55% Government owned Company. This is absolutely unacceptable,” the group said in a release issued on Monday.
A memo to all staff of the company in Accra and Kumasi announcing the closure of the company, which was established on December 12, 1974, cites 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.
Read CVM’s full statement below.
Neoplan (Ghana) Limited Closes Down on 31st January 2020: CVM Urges President Akufo-Addo to Intervene
The Neoplan (Ghana) Limited, a bus manufacturing company has been in existence since 1974. Since its establishment, the Company has made history in producing over 4,000 buses for Government Institutions, Universities, Metro Mass Transit (MMT), GPRTU and Private Individuals/Companies.
In 2002, President Kufuor’s Government contracted Neoplan (Ghana) Limited to build 450 DAF/VDL buses for Metro Mass Transit, this contract ended in July 2010 and Neoplan (Ghana) Limited has since not gotten any contracts from successive Governments.
Prof. Mills and Mahama’s Government never responded to the cries of Neoplan (Ghana) Limited. Akufo-Addo’s Government too has not made any meaningful efforts to revamp the Neoplan (Ghana) Limited. This is very sad considering the fact that the Government of Ghana has 55% shares in the company and is the majority shareholder, and the remaining 45% is for a private company known as Fadoul Group.
An internal memo from Neoplan (Ghana) Limited dated 15/01/2020 intercepted by Concerned Voters Movement(CVM) indicates that the Company would officially close down all its branches on the 31st of January 2020. The closure is largely due to the lack of support and Contracts from the Government which is the majority shareholder as well as recurring monthly losses.
As a result of the closure, all employment contracts with Neoplan (Ghana) Limited will be terminated by 31st January 2020.
According to President Akufo-Addo, he is constantly looking for employment opportunities for our young people and that Ghana’s biggest issue is jobs for young people. On this basis, President Akufo-Addo has no choice but to see the revamping of Neoplan (Ghana) Limited.
We are urging President Akufo-Addo to intervene and save the collapsing Neoplan (Ghana) Limited since his appointees at the Transport Ministry have failed woefully to support the Company.
Government has an obligation towards Ghanaians, the Government cannot continue to rely on the importation of Chinese, Korea and Indian buses at the detriment of Neoplan (Ghana) Limited, a 55% Government owned Company. This is absolutely unacceptable.
Razak Kojo Opoku
(CVM Founder and President)
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