J.A. Plant Pool (Ghana) Limited (JAPP) has denied allegations made by the Attorney-General and Minister for Justice, Dominic Ayine, regarding financial irregularities and tax evasion linked to the District Roads Improvement Programme (DRIP).
In a statement, the management of JAPP described the Attorney-General’s comments as a “partial narrative” that could damage the company’s hard-earned reputation.
The company maintained that all transactions under the DRIP contract were legitimate and consistent with approved government procedures.
Responding to claims that it received an excess payment of USD 2 million, JAPP clarified that the total contract value was USD 178,704,739.50, not USD 176 million as cited by the Attorney-General.
According to the company, the figure was clearly stated in the contract executed on February 12, 2024, and approved by the Public Procurement Authority (PPA).
JAPP explained that a clerical error in one of the PPA’s approval documents created the impression of a discrepancy.
“Any perceived excess did not result from overpayment but from a clerical mistake,” the company stated, adding that it promptly notified the approving authorities to correct the error.
JAPP also rejected the Attorney-General’s assertion that it evaded taxes amounting to GHS 38.7 million by importing 190 pieces of equipment under false exemption claims.
The company said records showed that only 99 additional semi-knocked-down equipment components were imported, primarily for maintenance and after-sales support for the DRIP machinery.
“These items were declared to the Ghana Revenue Authority and placed under bonded warehouse arrangements. There was no false declaration or tax evasion,” JAPP stated.
On claims of over-invoicing and inflated profit margins, JAPP insisted that all contract prices reflected fair market values determined through competitive procurement processes.
The company noted that similar equipment procured by the Ministry of Local Government in the past cost significantly more, arguing that the DRIP contract saved the government substantial funds.
JAPP highlighted the socio-economic benefits of the DRIP project, stating that it has created over 11,000 jobs and trained more than 4,000 Ghanaian mechanics.
It also pointed to a network of mobile maintenance units and service vans established across all 16 regions to ensure continuous equipment servicing.
“All equipment supplied under DRIP comes with a two-year manufacturer’s warranty, ensuring durability and reducing post-delivery losses,” the statement added.
Meanwhile, J.A. Plant Pool has reaffirmed its commitment to Ghana’s development agenda and expressed appreciation to the government and people of Ghana for their continued confidence in an indigenous company.
“JAPP remains a responsible corporate entity that operates within the law and continues to contribute meaningfully to national development,” the statement concluded.
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Read the full statement below: