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Attorney-General Uncovers GHC 38.7m Tax Evasion in DRIP Equipment Import Scandal

Attorney-General Uncovers GHC 38.7m Tax Evasion in DRIP Equipment Import Scandal
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The Attorney General and Minister of Justice, Dr Dominic Akuritinga Ayine, has disclosed that the government has demanded a refund of $2 million from JA Plant Pool Ghana Limited after investigations revealed financial irregularities in the District Road Improvement Programme (DRIP) contract.

Speaking at the Government Accountability Series in Accra on Wednesday, October 22, 2025, Dr Ayine said the overpayment was discovered during a forensic review of the $176 million contract awarded to the company.

He explained that although the contract sum was stated as $176 million, records showed a total of $178 million was paid, resulting in an excess of $2 million.

“In the case of DRIP, JA Plant was overpaid by $2 million. The contract sum was $176 million. On the face of the contract, that is the sum that was stated. When we examined the invoices of payments, it was $178 million that was paid. So, right away, there was a difference of $2 million. So, we asked that the $2 million be paid back by JA Plant Pool,” he stated.

The Attorney General further disclosed that the investigation uncovered tax evasion totalling GH¢38.7 million after 190 pieces of equipment were imported and cleared under false tax exemption claims.

“We also realised that 190 pieces of equipment were added and cleared without payment of tax. In other words, they were added to the release as if they were tax exempt,” he indicated.

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Dr Ayine noted that when investigators analysed the data using the HS code, it was established that GH¢38.7 million worth of taxes were evaded.

He said a formal demand has been made for the company to refund both the overpaid amount and the unpaid taxes.

He also said that the audit detected significant over-invoicing of equipment purchased under the DRIP contract, with mark-ups ranging from 100 to 300 percent.

“For example, one piece of equipment that cost $40,000 was invoiced at $84,000. That is over 110%,” Dr Ayine added.

According to him, a team of investigators is currently conducting a detailed review of all equipment supplied under the programme to ensure that any criminal charges brought forward are well-founded and specific.

The findings, he said, form part of a broader government initiative to retrieve misappropriated funds and enforce accountability in public financial management.

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