The Managing Director of Neoplan Ghana, George Nassar, has told Citi Business News government will engage shareholders of the company on Friday February 7, 2020, to discuss a revival strategy for the struggling firm.
Neoplan Ghana announced a planned shutdown in January due to lack of contracts and increasing losses. A government intervention however stayed the decision.
Speaking to Citi Business News, George Nassar said he is hopeful the scheduled meeting with government on Friday will yield positive results.
“We are in the process of discussing solutions along with the majority shareholders. I am supposed to meet them. Next week, we will have some concrete information,†he noted.
Background
On 24th January, 2020, Management of Neoplan Ghana Limited sent an urgent message to President Nana Akufo-Addo to save the company from closure.
“The Company is about to officially close down by 31st January 2020 due to lack of financial support and contracts from our majority shareholder, Government of Ghanaâ€, portions of the letter said.
In the letter, the company also highlighted the reluctance of successive governments to award them contracts which has “negatively affected the productivity of the company.â€
They further pleaded with President Akufo-Addo to come to their aid as the collapse of the firm would have a huge effect on the Ghana Beyond Aid agenda.
Shutting down Neoplan Ghana will be tragic Minority
Several stakeholders, including the Minority in Parliament, have warned that it will be tragic for Neoplan Ghana to shut down its operations as it is considered a strategic state asset.
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 remains productive.
Government later responded to the calls assuring management that it will take steps to revamp the company.
More about Neoplan
For 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.
Source: citibusinessnews