JA Plant Pool ordered to refund $2m overpayment under controversial DRIP contract

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JA Plant Pool ordered to refund $2m overpayment under controversial DRIP contract

The Attorney General and Minister for Justice, Dr. Dominic Ayine, has disclosed that the Government of Ghana has directed JA Plant Pool Ghana Limited

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The Attorney General and Minister for Justice, Dr. Dominic Ayine, has disclosed that the Government of Ghana has directed JA Plant Pool Ghana Limited to refund an excess payment of $2 million following the discovery of financial irregularities in the District Roads Improvement Programme (DRIP) contract.

Speaking at the Government Accountability Series held in Accra on Wednesday, October 22, 2025, Dr. Ayine revealed that a forensic audit of the $176 million DRIP contract uncovered evidence of overpayment, tax evasion, and inflated pricing of equipment.

Background of the DRIP Project

The DRIP initiative was launched under the Ministry of Roads and Highways to rehabilitate and maintain key feeder and district roads across the country.

The project, which involved the procurement of heavy-duty construction machinery and road maintenance equipment, was awarded to JA Plant Pool Ghana Limited, a subsidiary of Jospong Group, a private contractor known for supplying construction and logistics equipment to various government agencies.

However, the programme soon came under scrutiny following concerns about contract cost overruns, equipment pricing, and alleged breaches of procurement and tax procedures.

Details of the Overpayment

According to Dr. Ayine, the audit revealed that while the official contract value was pegged at $176 million, records showed that $178 million had been disbursed to the company — creating a discrepancy of $2 million.

“In the case of DRIP, JA Plant Pool was overpaid by $2 million. The contract sum was $176 million, but invoices indicated that $178 million was paid. We have therefore asked the company to refund the excess amount,” he stated.

Tax Evasion and False Exemptions

The Attorney General further indicated that the investigations uncovered a tax evasion scheme involving the importation of 190 pieces of equipment under false tax exemption claims.

“We realised that 190 items were cleared at the ports as if they were tax-exempt, which they were not. Upon review, the Ghana Revenue Authority estimated that the state lost GH¢38.7 million in taxes,” Dr. Ayine explained.

He added that the Ministry of Justice and the Attorney General’s Department have issued a formal demand notice to JA Plant Pool to recover both the overpayment and the unpaid taxes.

Inflated Pricing of Equipment

Dr. Ayine also disclosed that a deeper probe into the DRIP contract revealed widespread over-invoicing of equipment, with price mark-ups ranging between 100 and 300 percent.

“For example, one machine that cost $40,000 was invoiced at $84,000 — that’s an over 110% inflation,” he noted.

Legal Action And Next Steps

To build a solid legal case, a team of investigators is currently conducting an item-by-item review of all equipment purchased under the contract.

Dr. Ayine emphasized the need for precision and documentary evidence to ensure successful prosecution.

“You can imagine the volume of equipment supplied to all the districts. Our team is carefully reviewing each invoice and specification because, in criminal law, the charges must be specific — any error could cause the case to collapse,” he cautioned.

Part of Broader Anti-Corruption Effort

The findings form part of a broader government accountability and recovery exercise aimed at retrieving misappropriated public funds and ensuring transparency in state contracts.

Since assuming office, Dr. Ayine has spearheaded several financial audits into major public contracts, including those related to infrastructure, procurement, and logistics.

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