The Concerned Voters Movement (CVM) has described the decision to shut down Neoplan Ghana Limited as “absolutely unacceptable”.
An internal memo from Neoplan (Ghana) Limited indicated that the Company would officially close down all its branches on the 31st of January 2020 if the government does not intervene.
The closure is largely due to the lack of support and contracts from the Government which is the majority shareholder of the company.
According to a statement signed by the Founder and President of the group, Razak Kojo Opoku, the government has to desist from relying all the time “on the importation of Chinese, Korea and Indian buses at the detriment of Neoplan (Ghana) Limited, a 55% Government owned Company”.
The group further insisted that the government must fulfil its promise of providing jobs for the Ghanaian youth and focus on saving the company as the closure will lay off most, if not all of its workers.
The group has therefore called on 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.”
About Neoplan
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.
The company according to analysts can employ over 1,000 workers when in full production.
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.
Neoplan Ghana Limited had earlier announced a total shutdown on Friday 31st January because it was not capable of working effectively due to continuous debts it kept incurring.
The Company has been struggling to stay afloat for the past decade following neglect by successive governments.
Below is the full statement from CVM:
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 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.
….Signed…
Razak Kojo Opoku
(CVM Founder and President)