AG Reveals US $2 Million Overpayment and Tax Evasion in DRIP Contract with JA Plant Pool.
Accra, Ghana — The District Roads Improvement Programme (DRIP) contract awarded to JA Plant Pool Ghana Limited has been exposed for major financial irregularities, including a US $2 million overpayment, tax evasion of approximately GH¢38.7 million and equipment over-invoicing by as much as 300 percent, the Office of the Dr Dominic Ayine, Attorney-General and Minister for Justice, has disclosed.
Speaking during a “Government Accountability Series” briefing in Accra on Wednesday, October 22, Dr Ayine provided a breakdown of the findings from a forensic review of the contract. He said the approved contract sum was US $176 million, but invoices show that JA Plant Pool was paid US $178 million hence the overpayment. “In the case of DRIP, JA Plant Pool was overpaid by US $2 million. The contract sum was US $176 million … When we examined the invoices of payment, we discovered US $178 million had been paid. We therefore instructed that the US $2 million be refunded.” — Dr Dominic Ayine.
The review found that 190 pieces of heavy-duty equipment imported under the DRIP contract were cleared under the claim of tax exemption, leading to tax losses of GH¢38.7 million. Equipment pricing was significantly inflated: some items originally costing US $40,000 were invoiced at US $84,000 marking an increase of over 110 percent; in other cases, mark-ups ranged from 100 percent to 300 percent. The forensic audit is ongoing with an item-by-item review of all equipment supplied under DRIP to build a watertight case for potential criminal prosecution. Dr Ayine emphasized that precision is required in criminal law.
The DRIP was an infrastructure programme aimed at improving district-level road networks across Ghana, with funding and equipment supplied to Metropolitan, Municipal and District Assemblies (MMDAs) for jobs in road rehabilitation, connectivity and rural access. JA Plant Pool Ghana Limited was the main contractor for the scheme. According to its own profile, the project was expected to employ thousands of Ghanaian construction workers and support rural communities by improving access to markets through better road networks.
The government, through the Attorney-General’s Office, has issued a demand notice for repayment of the US $2 million overpayment and instructed the Ghana Revenue Authority (GRA) to pursue the GH¢38.7 million in tax liabilities. Dr Ayine indicated that the review team is working with the Criminal Investigations Department (CID) and other agencies to determine whether criminal charges may be filed once evidence is complete. He emphasized delays may happen because of the need for specificity in criminal law.
This disclosure comes amid a broader government push on recovering public funds and enhancing accountability in state contracting. It will raise significant questions about procurement practices, oversight of infrastructure programmes and the role of auditing bodies. Analysts suggest that such large-scale irregularities undermine public trust and call for stronger enforcement mechanisms.
The case also places a spotlight on the effectiveness of institutional checks and the degree to which state-contracted firms are held to account. For citizens and stakeholders, the key outcomes to watch will be: (1) whether the funds are recovered, (2) whether criminal prosecutions are pursued, and (3) whether reforms are implemented to prevent recurrence.
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