The management of J.A. Plant Pool (Ghana) Limited (JAPP), Ghana's leading machinery company, has issued a statement refuting allegations made by the Attorney-General and Minister for Justice, Mr Dominic Ayine, regarding financial and contractual irregularities in the District Roads Improvement Programme (DRIP).

In the comments attributed to the Attorney-General, it was alleged that investigations had uncovered a USD 2 million overpayment, tax evasion of GHS 38.7 million, and over-invoicing of equipment supplied under the programme.

However, JAPP described the assertions as factually inaccurate and potentially damaging to its reputation, insisting that all transactions under the DRIP contract were lawful, transparent, and approved through proper government channels.

On the Alleged USD 2 Million Overpayment

JAPP clarified that the official contract amount for the supply of 2,420 units of earth-moving equipment was USD 178,704,739.50, as stated in the signed agreement dated February 12, 2024, and endorsed by the Public Procurement Authority (PPA).
The company explained that the alleged discrepancy stemmed from a clerical error in the PPA’s approval letter, which it had promptly reported for correction.

“No overpayment occurred. The total contract sum remains USD 178,704,739.50 as duly executed and approved,” the statement emphasised.

On the Alleged Tax Evasion

Responding to claims of false tax exemptions, JAPP said it did not evade taxes, noting that all imported equipment was declared to the Ghana Revenue Authority (GRA) and placed under bonded warehouse supervision.
The company clarified that the alleged 190 “extra” machines were actually 99 semi-knocked-down components imported to provide maintenance and after-sales support for the DRIP equipment, not for commercial resale.

On the Alleged Over-Invoicing

JAPP also rejected claims of “100–300% mark-ups,” describing them as misleading.
According to the company, the prices were competitive, vetted by relevant agencies, and significantly lower than previous government procurements of similar machinery.

“The USD 178 million contract represented value for money, saving the government substantial costs compared to prior deals,” JAPP stated.

On Value for Money and Impact

JAPP highlighted that the DRIP project has delivered substantial socio-economic benefits, including:

Creation of over 11,000 jobs nationwide.

Training and certification of more than 4,000 Ghanaian mechanics.

A two-year manufacturer’s warranty on all equipment.

Establishment of regional and zonal maintenance support units across the 16 regions.

Technical partnerships with Ghanaian universities to enhance local expertise.

The company reaffirmed its commitment to Ghana’s development agenda, pledging to continue operating with transparency and accountability.

“JAPP is proud to be a wholly Ghanaian company contributing meaningfully to national development.

We remain dedicated to delivering quality, efficiency, and value to the people of Ghana,” the statement concluded.