JAPP refutes Attorney-General’s claims over DRIP contract

J.A. Plant Pool (Ghana) Limited (JAPP) has firmly dismissed recent claims made by the Attorney-General and Minister for Justice, Dominic Ayine, regarding alleged financial irregularities in the District Roads Improvement Programme (DRIP).

In a detailed rejoinder today, the company described the Attorney-General’s statements as “unfortunate” and “misrepresentative of the facts,” arguing that the disclosure presents only a partial narrative that risks undermining the company’s reputation built over years of partnership with government.

Responding to the Attorney-General’s claim that the company was overpaid by US$2 million, JAPP clarified that the official contract sum for the DRIP project stood at US$178,704,739.50, not US$176 million as stated by the minister.

The company explained that a clerical error in the Public Procurement Authority’s (PPA) approval document created the appearance of a discrepancy. “The Supplier promptly notified the approving authorities upon discovery of the error for correction. Any perceived excess of US$2 million did not arise from an overpayment to JAPP,” the statement said.

JAPP stressed that all approvals and payments were made through lawful government channels and that the company cannot be held responsible for clerical mistakes originating from approving authorities.

On allegations that the company evaded taxes totalling GHC 38.7 million, JAPP categorically denied any wrongdoing. It said the claim that 190 pieces of equipment were cleared under false tax exemption claims was “factually incorrect.”

The company explained that only 99 semi-knocked-down components, including low-bed trailers and service units were imported beyond the contracted 2,420 units. These, it noted, were essential support equipment for maintenance and after-sales service, not for commercial gain.

“All such equipment were duly declared to the Ghana Revenue Authority and placed under bonded warehouse conditions. There is, therefore, no case of tax evasion,” JAPP asserted.

JAPP also rejected allegations of “over-invoicing” with mark-ups between 100 and 300 per cent, describing them as misleading. The company said contract prices were determined through competitive procurement and were, in fact, significantly lower than similar past procurements.

It cited an earlier Ministry of Local Government purchase of 60 similar machines at €27.8 million (US$32.2 million), noting that by comparison, the DRIP’s 2,420 units at US$178 million offered far greater value for money.

According to JAPP, the DRIP project has provided exceptional socio-economic benefits to Ghana, including the creation of over 11,000 direct jobs, primarily for young people and local artisans.

The company added that more than 4,000 Ghanaian mechanics had received professional training and certification, enhancing local capacity for equipment maintenance and operations.

“All equipment supplied under the programme came with a two-year manufacturer’s warranty, ensuring reliability and eliminating the breakdown and abandonment challenges that plagued previous government procurements,” JAPP noted.

The firm further highlighted its investment in a nationwide maintenance support network, with mobile service units across all 16 regions and satellite vans in zonal districts. It also disclosed that several Ghanaian technicians had received advanced technical training in China to build long-term local expertise.

Describing itself as a “wholly Ghanaian-owned company,” JAPP reaffirmed its commitment to supporting national development through infrastructure and job creation.

“The DRIP has been transformational enhancing local expertise, creating employment, and retaining technical value within the Ghanaian economy,” the statement concluded.

JAPP expressed gratitude to the Government and people of Ghana for their continued confidence in indigenous enterprises contributing meaningfully to the nation’s progress.

The post JAPP refutes Attorney-General’s claims over DRIP contract appeared first on The Herald ghana.

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