$6m DVLA contract anomaly: Prosecute those responsible – GII

Anti-graft campaigner Vitus Azeem has called for the prosecution of all those responsible for a contract sum anomaly of more than $6 million signed between the Driver, Vehicle and Licensing Authority (DVLA) and private firm Foto-x.

The 10-year $3.6 million contract changed to $9.9 million, an anomaly that necessitated investigations by the Economic Organised Crime Office (EOCO), prompting the Attorney General to abrogate it.

“…Those people that are involved should be prosecuted…” Executive Director of Transparency International’s local chapter Ghana Integrity Initiative (GII), Mr Vitus Azeem has said.

Former boss of the DVLA, Justice Amegashie, who signed off the contract during his tenure in office, on Tuesday, pleaded with Parliament and Ghanaians for forgiveness, for failing to detect the anomaly.

“To err is human” he told the Parliamentary select committee on transport Tuesday during hearings into how a $3.6 million contract transmogrified into a $9.9 million contract.

“When I appeared before EOCO, the first question they asked me was: ‘What was the contract sum?’ and I said: ‘3.6 million,’ then they told me they will charge me for causing financial loss…I told them to hold on so I get a lawyer. My lawyer asked me if I was sure the contract was $3.6 million and I said yes, that was the figure that was approved. At the time they had not showed me the document that it was $9.9 million. I came before the sub-committee of the board and the same question they asked me: ‘What was the contract sum?’ and I told them $3.6 million. I have never authorised anything and I have never had any discussion with anybody for the purposes of varying the figures,” Mr Amegashie explained, adding: “If I had seen it, I would have stopped it.”

However, Mr Azeem told Robert Nii Arday Clegg on Starr FM’s ‘Morning Starr’ on Wednesday that: “…It’s a huge sum of money, and how do you distinguish between a genuine mistake and a deliberate act for self-benefit?”

“If it was even a genuine mistake, should we just let it go considering the fact that we have a law on causing financial loss to the state?” he asked.

The Attorney General’s Department recently ordered the DVLA to “terminate” the contract “forthwith”.

The contract was executed on August, 2, 2012, spanning from 2012 to 2022.

The main purpose of the contract, according to a letter from the AG’s department, signed by Chief State Attorney K. Asiama-Sampong on behalf of the Attorney General, was for “Foto-x limited to design, install, maintain and to service the system for personalising and production of driver's licences (Leaner's and Permanent) material supply and for personalisation and production of permanent drivers’ license.”

However, some discrepancies in the contract sum stalled the execution of the contract, a situation that necessitated EOCO’s probe.

According to the AG’s letter, EOCO made the following findings: “(a) Investigations disclosed that within the contract period of six years Foto-x was paid GH¢20,961,785.00 instead of GH¢5,544,000.00 as the equivalent of the original contract sum of $2,772,00.00. The overpayment which was discovered was GH¢15,417,785.00.”

“(b) The wrongful payment amounting to GH¢3,011,021.29 being the cost of consumables which price had already been factored in the contract sum of $2,772.00 to the consultant Foto-X.”

"On the basis of the above, the Attorney-General has, therefore, directed “that the second contract mentioned above should be terminated forthwith. In addition, the Attorney-General directs that no further payment should be made out of the second contract to Foto-x Limited.”

Read the full letter below:

We have received the docket on the above case for advice. The Attorney-General, in the interim directs you as following pending our final advice on the matter. The case mentioned above is in connection with the contract for consulting services between driver, vehicle and licensing Authority (D.V.L.A) and Foto-x Limited. The contract was executed on 2nd August, 2012, and the contract period is ten years spanning from 2012 to 2022.

The main purpose of the contract was for Foto-x limited to design, install, maintain and to service the system for personalizing and production of driver's licences (Leaner's and Permanent) material supply and for personalisation and production of permanent drivers’ license.

The above-mentioned contract followed a similar one which was implemented from 2006 to 2012, a period of 6 years. The contract was a turn-key project in which the consultant (Foto-x limited) was to hand over the system and the equipment to DVLA to manage by itself at the end of the contract in 2012 but the consultant failed to do so.

A complaint on the implementation of the contract was submitted to Economic and Organised Crime Office (EOCO) for investigation, the report of which was submitted to the Attorney-General for advice, The following issues came up for investigations:

(1) Wrongful collection of moneys as reimbursement for consumables which had already been factored in the contract sum of $2.772.000.

(2) Overpayment of the contract sum of $2.772.000, which in cedi equivalent amounts to GH¢5,544.000 to the consultant.

(3)Fraudulent contract on the basis of: (a)Renewing the first contract which was as turn-key project.

(b)Changing the contract sum of $3,600,000 to $9,976,209.50 by the consultant without due recourse to Public procurement Act 663,(Act 2003).

The finding of Economic and Organized Crime Office are as following:

(a)Investigations disclosed that within the contract period of six years Foto-x was paid GH¢20,961,785.00 instead of GH¢5,544,000.00 as the equivalent of the original contract sum of $2,772,00.00. The overpayment which was discovered was GH¢15,417,785.00.

(b)The wrongful payment amounting to GH¢3,011,021.29 being the cost of consumables which price had already been factored in the contract sum of $2,772.00 to the consultant Foto-X.

On the basis of the above, the Attorney-General directs that the second contract mentioned above should be terminated forthwith. In addition, the Attorney-General directs that no further payment should be made out of the second contract to Foto-x Limited.

Signed K. Asiama-Sampong

Chief State Attorney

For: Attorney-General