Accra, October 23, 2005 – J.A. Plant Pool (Ghana) Limited (JAPP) has strongly refuted recent claims made by the Attorney-General and Minister for Justice, Hon. Dominic Ayine, alleging financial irregularities and tax evasion in the execution of the government’s District Roads Improvement Programme (DRIP).
In a statement issued in Accra, the management of the company described the Attorney-General’s comments as “unfortunate” and “misleading”, insisting that the remarks presented “a partial narrative” of the facts surrounding the project and risked damaging the company’s reputation built over years of service to the state.
The Attorney-General had claimed that investigations into the DRIP contract revealed a USD 2 million overpayment to JAPP, tax evasion of GHS 38.7 million, and significant over-invoicing of equipment with mark-ups ranging between 100% and 300%.
However, JAPP, in its detailed response, dismissed all three claims as inaccurate and unsupported by the official contract records.
Clarification on Alleged USD 2 Million Overpayment
JAPP explained that the official contract, executed on February 12, 2024, between the Government of Ghana and the company, covered the supply of 2,420 pieces of earth-moving equipment for district assemblies nationwide at a total cost of USD 178,704,739.50, a figure approved by the Public Procurement Authority (PPA) and contained in Clause 3.1.1 of the contract.
The company clarified that the Attorney-General’s reference to a contract sum of USD 176 million was factually incorrect, stressing that the supposed excess payment was the result of a clerical error in the PPA approval letter.
“Any perceived excess of USD 2 million did not arise from an overpayment to JAPP,” the statement said, adding that “JAPP cannot be held liable for errors originating from approving authorities, especially where all approvals and payments were sanctioned through lawful governmental channels.”
Rebuttal of Alleged Tax Evasion
On the claim of tax evasion amounting to GHS 38.7 million, JAPP stated that it had not cleared 190 additional pieces of equipment under false tax exemptions as alleged.
According to the company, only 99 extra equipment components, mostly semi-knocked-down parts of low-bed trailers and service equipment, were imported alongside the contracted units solely to support the maintenance and operational efficiency of the DRIP machinery.
“All these items were duly declared to the Ghana Revenue Authority (GRA) and placed under bonded warehouse. There is, therefore, no case of tax evasion,” the statement emphasized.
Response to Over-Invoicing Allegations
JAPP also dismissed as false the Attorney-General’s claim that the company over-invoiced equipment under the DRIP contract with mark-ups of 100–300%.
The firm explained that all pricing reflected competitive market values established through due procurement processes and government oversight. JAPP compared the DRIP contract with a previous government procurement of 60 similar machines for the MMDAs at €27.795 million (USD 32.24 million) from a foreign supplier, indicating that the same quantity under that pricing would have cost Ghana approximately USD 1.3 billion.
“The USD 178 million paid for the 2,420 DRIP equipment was, in fact, highly reasonable and saved the government large sums of money,” JAPP asserted.
Value for Money and Socio-Economic Benefits
The company highlighted the project’s broader national benefits, citing the creation of over 11,000 direct jobs, the professional training of more than 4,000 Ghanaian mechanics, and the establishment of a nationwide maintenance support system with mobile units operating in all 16 regions.
JAPP also noted its partnership with technical universities to develop a domestic talent pipeline for long-term local assembly and equipment maintenance. All equipment, it added, came with a two-year manufacturer’s warranty to ensure sustained operational reliability.
Commitment to National Development
Reaffirming its commitment to Ghana’s development, JAPP described itself as a responsible, wholly Ghanaian-owned entity that has consistently supported job creation, technical capacity building, and infrastructure growth.
“J.A. Plant Pool remains dedicated to implementing a project of such national importance and to upholding the laws of the Republic while contributing meaningfully to Ghana’s development agenda,” the statement concluded.
