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JAPP denies $2m overpayment claim, cites ‘clerical error’ in DRIP contract

by theoverseer
October 24, 2025
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JAPP denies $2m overpayment claim, cites ‘clerical error’ in DRIP contract
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J.A. Plant Pool (Ghana) Limited (JAPP) has rejected allegations by Attorney-General and Minister for Justice, Dominic Ayine, that the company received an excess payment of $2 million under the District Roads Improvement Programme (DRIP) contract, insisting the supposed discrepancy was due to a clerical mistake in official government records.

In a statement issued on Thursday, October 23, 2025, JAPP described the Attorney-General’s comments as “unfortunate” and said they presented “a partial narrative of the issues” that could tarnish its reputation.

Responding directly to Dr. Ayine’s claim that the contract sum was $176 million instead of $178 million, the company said, “It is therefore 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.”

The company explained that the alleged $2 million overpayment “did not arise from an overpayment to JAPP, but from a clerical mistake” in the Public Procurement Authority’s approval letter relating to one equipment line item.

JAPP said it “promptly notified the approving authorities upon discovery of the error, for the same to be corrected.”

On claims of tax evasion amounting to GH¢38.7 million, JAPP maintained that it had not violated any tax laws, clarifying that the additional equipment imported were “semi-knocked-down components” used for maintenance and after-sales support.

“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,” the statement added.

JAPP also dismissed allegations of over-invoicing, insisting that the contract represented value for money compared to previous government procurements.

“The US$178 million contract for 2,420 units was, in fact, value for money,” it stated, citing that a similar past purchase of 60 units had cost the government over US$32 million.

The company highlighted that the DRIP project has created over 11,000 jobs, trained 4,000 local mechanics, and established maintenance units across all 16 regions.

JAPP reaffirmed its commitment to transparency and national development, expressing gratitude to government and citizens for their trust in an indigenous company “whose services continue to contribute to Ghana’s development.”

Tags: AG AyineDRIP ContractGhana NewsJAPPORAL
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