Heavy equipment supplier J.A. Plant Pool (Ghana) Limited (JAPP) has refuted allegations by the Attorney-General and Minister for Justice, Dr Dominic Ayine, suggesting the company received excess payments and engaged in tax evasion under the District Roads Improvement Programme (DRIP).
In a statement issued by the company, management described the Attorney-General’s comments as a “partial narrative” that could unfairly harm its reputation. The company insisted that all transactions under the DRIP contract followed due process and approved procurement procedures.
According to the Attorney-General, JAPP was overpaid by about USD 2 million and failed to pay taxes on imported equipment used for the project. But JAPP said the claim was based on inaccurate contract figures. It clarified that the contract sum was USD 178,704,739.50, not USD 176 million as quoted.
“The figure was clearly stated in the contract executed on February 12, 2024 and approved by the Public Procurement Authority. Any perceived excess did not result from overpayment but from a clerical mistake,” the statement said, adding that the company notified the authorities once the error was detected.
On the issue of tax evasion, JAPP dismissed the suggestion that it falsely claimed exemptions when importing equipment. The company said only 99 semi-knocked-down equipment components were brought in for maintenance and after-sales support, and these were duly declared to the Ghana Revenue Authority and kept under bonded warehousing arrangements.
“There was no false declaration or tax evasion,” the company stressed.
Responding to claims of inflated pricing, JAPP said the contract prices reflected fair market conditions and were awarded through competitive procurement processes.
It further argued that similar machinery procured by other government agencies in the past cost significantly more, suggesting that the DRIP contract saved the state money.
The company also highlighted the socio-economic benefits of the DRIP programme, noting that it has created over 11,000 jobs and trained more than 4,000 mechanics nationwide.
It added that all supplied equipment carries a two-year manufacturer’s warranty, backed by mobile maintenance units deployed across all 16 regions.
JAPP reaffirmed its commitment to supporting Ghana’s development efforts.
“JAPP remains a responsible corporate entity that operates within the law and continues to contribute meaningfully to national development,” the statement concluded.
The Ministry of Justice is yet to formally respond to the company’s clarification.