JAPP Refutes Claims of Overpayment and Tax Evasion in DRIP Project

The management of J.A. Plant Pool (Ghana) Limited (JAPP) has denied recent allegations made by the Attorney-General, Hon. Dominic Ayine, about financial irregularities in the District Roads Improvement Programme (DRIP).

Najat Adamu
3 Min Read

The management of J.A. Plant Pool (Ghana) Limited (JAPP) has denied recent allegations made by the Attorney-General, Hon. Dominic Ayine, about financial irregularities in the District Roads Improvement Programme (DRIP).

In a statement, JAPP said the Attorney-General’s comments gave a “partial narrative” that could damage the company’s reputation, insisting that all its dealings under the DRIP contract were lawful and transparent.

No Overpayment

The Attorney-General had claimed that JAPP was overpaid by USD 2 million, suggesting that the contract sum was USD 176 million, but USD 178 million was paid.

JAPP, however, clarified that the official contract amount, as approved and signed by all parties, was USD 178,704,739.50 — not USD 176 million.

The company explained that the difference came from a clerical mistake in the Public Procurement Authority’s approval letter, not from any overpayment. “It is factually incorrect to assert that the contract sum was USD 176 million,” – JAPP stated.

No Tax Evasion

The Attorney-General also alleged that JAPP evaded GH¢ 38.7 million in taxes after importing equipment under false tax exemption claims.

JAPP dismissed this claim, explaining that it only imported 99 additional equipment parts—mainly spare and service components—to support the maintenance of machines supplied under the DRIP project.

According to the company, all these items were properly declared to the Ghana Revenue Authority and kept in a bonded warehouse, so “there is no case of tax evasion.”

No Over-Invoicing

Responding to another allegation of over-invoicing with mark-ups between 100% and 300%, JAPP stated that its prices reflected competitive market rates and were approved through the right procurement processes.

The company added that the DRIP equipment was cheaper than similar government purchases in the past, saving the country a significant amount of money.

Plant Pool

Positive Impact of DRIP

JAPP highlighted the benefits of the DRIP project, saying it had created over 11,000 jobs, trained more than 4,000 Ghanaian mechanics, and ensured that every piece of equipment came with a two-year warranty.

The company also established maintenance units in all 16 regions and partnered with Technical Universities to train more local technicians, boosting Ghana’s technical capacity.

JAPP reaffirmed its commitment to transparency and national development, thanking the Government and people of Ghana for their continued support.

“We remain a responsible Ghanaian company dedicated to advancing local capacity and supporting national growth,” the statement concluded.

By Ebenezer Madugu

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