The management of J.A. Plant Pool (Ghana) Limited (JAPP) has dismissed allegations made by the Attorney-General and Minister for Justice, Dominic Ayine, regarding irregularities in the District Roads Improvement Programme (DRIP), describing them as inaccurate and damaging to the company’s reputation.
In a statement issued on Thursday, October 23, JAPP said while it respects the Attorney-General’s constitutional mandate, the claims made about overpayments, tax evasion, and over-invoicing were “unfortunate” and misrepresented the facts.
“The disclosure presents a partial narrative of the issues and risks tarnishing the company’s hard-earned reputation built over years of diligent service to the Government and people of Ghana,” the company stated.
No Overpayment in Contract Sum
Responding to the Attorney-General’s claim that an excess payment of US$2 million was made under the DRIP contract, JAPP explained that the approved and executed contract sum was US$178,704,739.50, not US$176 million as alleged.
“It is factually incorrect to assert that the contract sum was USD 176 million. The official contract amount, duly executed by all parties, remains USD 178,704,739.50,” JAPP clarified.
The company attributed the discrepancy to a clerical error in the Public Procurement Authority’s (PPA) approval letter and maintained that all payments were made lawfully and transparently.
Denies Tax Evasion Claims
JAPP also rejected allegations of GHS 38.7 million in tax evasion, saying all its imports under the DRIP project were properly declared to the Ghana Revenue Authority (GRA) and placed under bonded warehouse supervision.
“The claim that JAPP imported and cleared 190 pieces of equipment under false tax exemption claims is incorrect. Only 99 additional semi-knocked-down components were imported to support maintenance operations, not for separate commercial gain,” the company said.
Disputes Over-Invoicing Allegations
On claims of over-invoicing with mark-ups of up to 300 percent, JAPP said contract prices reflected “competitive market values” determined after due procurement processes and government vetting.
“By comparison, similar equipment procured previously cost the government US$1.3 billion. The US$178 million contract for 2,420 units was, in fact, value for money,” the company explained.
JAPP Highlights Value of the DRIP Project
The company underscored that the DRIP project has created over 11,000 jobs, trained 4,000 Ghanaian mechanics, and strengthened local technical capacity through partnerships with technical universities and manufacturers.
It added that all supplied equipment came with a two-year warranty and were supported by mobile maintenance units across all 16 regions to ensure reliability and durability.
“These interventions have had a transformational socio-economic impact, enhancing local expertise, creating employment, and retaining technical value within the Ghanaian economy,” the statement said.
JAPP reaffirmed its commitment to working with government institutions to ensure transparency, value for money, and continued contribution to Ghana’s development agenda.
