J.A. Plant Pool rejects Attorney-General’s $2m excess claim in DRIP deal
A legal dispute over the multi-million-dollar District Road Improvement Programme (DRIP) contract has taken a new turn after J.A. Plant Pool (GH) Limited (JAPP) and its Executive Chairman, Dr. Joseph Siaw Agyepong, strongly rejected allegations by the Attorney-General that the company owes the Government of Ghana $2 million under a contract executed in 2024.
The company has vowed to vigorously contest the lawsuit in court, insisting that it has fully complied with its contractual obligations and is not indebted to the state in any form.
The latest development follows legal action initiated by the Attorney-General seeking the recovery of what government describes as an excess payment of $2 million allegedly made to J.A. Plant Pool under a contract for the supply of road construction and maintenance equipment under the DRIP initiative.
The lawsuit forms part of a broader government review of contracts and public expenditures aimed at identifying potential financial irregularities and recovering funds believed to be owed to the state.
However, in a response to the suit, J.A. Plant Pool dismissed the claim as unfounded and expressed concern over the manner in which details of the lawsuit were widely circulated in the media before the company had been formally served with the court documents.
According to the company, the publicity surrounding the case has caused significant reputational damage not only to J.A. Plant Pool but also to the wider Jospong Group of Companies and its business partners.
“JAPP and Dr. Joseph Siaw Agyepong categorically deny any indebtedness to the Government of Ghana or any of her agencies arising from the contract dated 12th February 2024, executed pursuant to the DRIP programme,” the statement emphasized.
The controversy stems from a contract awarded under the District Road Improvement Programme, a flagship initiative launched by the previous government to improve road maintenance and infrastructure development across the metropolitan, municipal, and district assemblies.
The DRIP programme involved the procurement and distribution of road maintenance equipment to local authorities nationwide as part of efforts to strengthen road rehabilitation and maintenance at the district level.
According to J.A. Plant Pool, the procurement process was undertaken with full regulatory approval. The company stated that the Public Procurement Authority (PPA) granted authorization on January 10, 2024, for the government to procure machinery and equipment from the company at a total contract value of approximately $178.7 million.
The company argued that both the PPA approval and the final contract clearly stipulated the value of the agreement and that all transactions were conducted in accordance with those approved terms.
J.A. Plant Pool further maintained that it fully executed its obligations under the agreement by delivering all machinery and equipment specified in the contract.
“As the Attorney-General knows, the contract has since been fully performed with JA Plant Pool duly supplying all machines and equipment to the Government of Ghana,” the company stated.
The company also insisted that all payments made by the government were processed strictly according to the provisions contained in the contract and that there was no basis for any claim of overpayment.
The dispute emerged after the Attorney-General alleged that a discrepancy existed within the contract documents.
According to government claims filed in court, while the contract value was stated as approximately $178.7 million, the cumulative total of the individual equipment prices allegedly amounted to about $176.7 million, creating a difference of $2 million.
Government contends that the higher figure was mistakenly used as the contract sum and that the excess amount should therefore be refunded.
J.A. Plant Pool, however, rejects that interpretation and insists that the contract value approved by the relevant authorities and agreed by both parties remains valid and binding.
The company says it remains confident that the facts surrounding the transaction will emerge during the court proceedings and has pledged to defend its position vigorously.
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