The Ghana Revenue Authority has confirmed that GH¢22 million in taxes was evaded in the District Roads Improvement Programme deal involving J.A. Plant Pool Limited, the Attorney-General and Minister for Justice, Dr Dominic Ayine, has revealed.
Speaking on the matter on Newsfile on Saturday January 10, Dr Ayine said the confirmation from the GRA puts beyond doubt the issue of tax evasion in the DRIP deal.
He explained that while his office initially estimated the tax evaded at GH¢38.7 million, it did not have the mandate to make a final determination and therefore formally requested verification from the GRA in July last year.
According to him, the GRA only confirmed last week that GH¢22 million in taxes had indeed been evaded, allowing him to speak with certainty on the matter.
Dr Ayine revealed that the company itself had written to acknowledge that some items imported under the DRIP arrangement were warehoused after being cleared as tax-exempt, even though they did not qualify for such exemptions. He stressed that this admission does not absolve the company of wrongdoing.
He explained that once goods are imported into the country without the payment of duties that should have been paid, tax evasion has occurred, regardless of any subsequent explanations.
The Attorney-General also disclosed that the alleged US$2 million overpayment linked to the DRIP contract has been flagged and will be pursued in addition to the confirmed GH¢22 million tax evasion. He rejected claims that the overpayment resulted from a clerical error, insisting that the matter is not an administrative mistake.
Dr Ayine’s comments come in response to a statement by J.A. Plant Pool Limited last year, which rejected allegations of overpayment, tax evasion and over-invoicing in the DRIP contract. The company had attributed the US$2 million discrepancy to a clerical error and maintained that all imports were properly declared and processed through bonded warehouses.
However, Dr Ayine reiterated that investigations have been conducted and evidence exists to support the government’s position. He maintained that he stands by his earlier statements and indicated that legal action remains an option if the company fails to comply with demands arising from the findings.
The dispute continues to draw public attention as government pursues accountability and recovery of funds linked to the DRIP programme.
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