Neoplan shutdown put on hold after government intervention

Local News

News

Politics

January 29, 2020

No Comments

Government has intervened to avoid the imminent collapse of Neoplan.

According to Starr News sources within the management of the firm, state officials are working with authorities of the now struggling auto company to continue to stay in business.

A top official of the company told Starr News they have received calls from government to put the planned shutdown on hold.

Workers of the company are owed many months in salary arrears.

Reports say the decision to shut down the firm follows the inability of the minority shareholder, the Fadoul Group, to continue funding the company all by itself, while the government which owned the majority shareholder contributed nothing to its operations.

In 2016, the company approached the government to help settle a debt of US$173,000 to gain an additional 20 per cent shares in the company.

However, the government did not release the shares to the company.

Background

Neoplan shutdown

Neoplan Ghana Limited since it’s setup on December 12, 1974 has produced over 4,000 buses for Ghana and surrounding economies but it has been scheduled to shutdown on January 31, 2020 according to a memo by the company due to unprofitability and recurring monthly losses as reasons for the shutdown.

The memo dated on January 15, 2020 and signed by the Managing Director of the company, Mr Georges Nassar titled; “Closure of Neoplan (Ghana) Limited”: “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.

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 Limited.

tag:

Mr Kelly Brown Author

Breaking News Gh is one of the most renowned online news magazine in Africa and the world as a whole with over 1 million+ clicks per day. We only feed our readers with credible source of information educating both the learned and unlearned

YOU MAY ALSO LIKE

No Comments

LEAVE A COMMENT

Your email address will not be published.