The Ghana Revenue Authority (GRA) has confirmed that GH¢22 million in taxes was evaded under the District Roads Improvement Programme (DRIP) contract involving J.A. Plant Pool Limited, according to the Attorney-General and Minister for Justice, Dr. Dominic Ayine.
Speaking on Newsfile on Saturday, January 10, Dr Ayine said the GRA’s confirmation settles any doubt about the occurrence of tax evasion in the DRIP transaction.
He explained that although his office initially estimated the tax loss at GH¢38.7 million, it lacked the legal mandate to make a definitive determination. As a result, a formal request was submitted to the GRA in July last year for verification. The revenue authority, he said, confirmed last week that GH¢22 million in taxes had indeed been evaded.
Dr Ayine further disclosed that J.A. Plant Pool Limited had acknowledged in writing that certain items imported under the DRIP arrangement were warehoused after being cleared as tax-exempt, despite not qualifying for such exemptions. He stressed that this admission does not exonerate the company.
According to the Attorney-General, importing goods without paying the appropriate duties constitutes tax evasion, regardless of any explanations provided after the fact.
He also revealed that an alleged US$2 million overpayment associated with the DRIP contract has been identified and will be pursued in addition to the confirmed tax evasion. Dr Ayine dismissed claims that the discrepancy was the result of a clerical error, insisting that the issue is substantive rather than administrative.
Dr Ayine’s remarks follow a statement issued last year by J.A. Plant Pool Limited, which denied allegations of tax evasion, overpayment, and over-invoicing. The company had attributed the US$2 million discrepancy to a clerical mistake and maintained that all imports were properly declared and processed through bonded warehouses.
However, the Attorney-General reiterated that investigations have been conducted and evidence exists to support the government’s position. He said he stands by his earlier statements and noted that legal action remains an option should the company fail to comply with demands arising from the findings.
The matter continues to attract public scrutiny as the government intensifies efforts to ensure accountability and recover funds linked to the DRIP programme.
