Sunday, 23 February

Neoplan to shut down operations Friday

Business
Neoplan premises

Neoplan (Ghana) Limited will shut down its operations on 31 January 2020, Classfmonline.com understands.

As a result of the closure, all employment contracts with the company will be terminated by 31 January 2020.

An internal memo dated 15/01/2020 revealed that the once-vibrant company would officially close down all its branches at the end of this month.

Sources say the closure of the business is largely due to the lack of support and contracts from the government, which is the majority shareholder.

Additionally, the recurring monthly losses have become unbearable.

In 2002, the erstwhile Kufuor government contracted Neoplan to build 450 DAF/VDL buses for Metro Mass Transit, but since the contract ended in July 2010, it has not got any contracts from successive governments.

Meanwhile, civil society group, Concerned Voters Movement (CVM), is urging President Nana Addo Dankwa Akufo-Addo to intervene and save Neoplan from collapse since the Transport Ministry has failed to support the company.

“The government has an obligation toward 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”, it explained.

The government of Ghana has 55% shares in Neoplan while the remaining 45% is owned by private company Fadoul Group.

 

 

 

 

 

Source: classfmonline.com