Management of the Neoplan Ghana Limited has commended government’s effort to help revive the struggling company.
The company was scheduled for closure this Friday 31st January 2020, due to lack of financial support and contracts.
But the Ministry of Trades and Industry has intervened asking management to hold onto the closure as it finds a lasting solution to the challenges.
Managing Director of the company, George Nassar, told Citi Business News they’re optimistic that the Ministry will rescue them.
“We had a meeting with the Ministry of Trade and they are very concerned about what is happening and they want to find a way to fix the issues. They are working to solve the issue, and the Minister himself 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. Tuesday’s meeting was very fruitful. The Ministry is doing a perfect job in terms of how to handle this matter,” he said.
Background
Government had already given the assurance that it will revamp the dying company if it received a petition from the management of Neoplan Ghana Limited requesting for its intervention.
Communications Director at the Presidency, Eugene Arhin, who confirmed that the presidency had received the petition but it had not gotten to President Akufo-Addo’s office, noted that the President will act on it once he receives it.
“It might have gotten to the Presidency but there are processes before it gets to the office of the President so it hasn’t reached the President yet. So per my information, it has reached the Presidency but it hasn’t gotten to the President’s table yet. I’m sure by close of day, it would have gotten to the President. The President has to look at it and then from there, he can then direct as to what has to be done,” he noted.
Government has been urged to rescue the company it remains a major stakeholder.
Shutting down Neoplan Ghana will be tragic – Minority
The Minority in Parliament says it will be tragic for Neoplan Ghana to shut down its operations as it is considered a strategic state asset.
According to the Minority, a shutdown will not be in the best interest of the country.
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 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.
More About Neoplan
During the 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 and running the shift system of production.