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JAPP denies $2M overpayment in DRIP contract, blames clerical error

October 24, 2025
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The management of J.A. Plant Pool (Ghana) Limited (JAPP) has denied being overpaid $2 million in the District Roads Improvement Programme (DRIP) contract.

The company rather attributed the alleged US$2 million overpayment to a clerical error in official documents.

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It has also refuted allegations of overpayment, tax evasion, and over-invoicing made by the Attorney-General and Minister for Justice, Dominic Ayine.

The response from the company comes after the Attorney-General revealed that the company was overpaid by $2 million and that they have been asked to refund it.

JAPP described the Attorney-General’s public comments on the matter as “unfortunate”.

“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.

It clarified 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 said.

The company added that all transactions under the DRIP contract were lawful, transparent, and approved through proper government channels.

On the issue of alleged tax evasion, the company explained all its imports were duly declared to the Ghana Revenue Authority (GRA) and placed under bonded warehouse supervision. Travel guides for Ghana

“The claim that JAPP imported and cleared 190 pieces of equipment under false tax exemption claims is incorrect. Only 99 semi-knocked-down components were imported to support maintenance operations, not for separate commercial gain,” it stated.

“The US$178 million contract for 2,420 units was, in fact, value for money,” the statement noted, comparing it favourably with a previous government procurement of similar equipment for US$1.3 billion.

Meanwhile, it has also described the DRIP project as one with a significant contribution to national development, noting that it had created over 11,000 jobs, trained 4,000 local mechanics, and established mobile maintenance units in all 16 regions.

“These interventions have had a transformational socio-economic impact, enhancing local expertise, creating employment, and retaining technical value within the Ghanaian economy,” JAPP added.

By: Rainbowradioonline.com/Ghana

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