AG halts DVLA, Foto-x contract

The Attorney General’s Department has ordered the Driver, Vehicle and Licensing Authority (DVLA) to “terminate forthwith”, its ten-year contract with Foto-x.

The contract was executed on August 2, 2012, and the contract period is ten years 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 a probe by the Economic and Organised Crime Office (EOCO).

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

Meanwhile, Parliament intends inviting the management of the DVLA to answer questions relating to the contract.

Chairman of the Transport Committee of Parliament Theophilus Tetteh Chaie recently expressed surprise at the revelations and said the matter will be investigated.

Mr Chaie told Joy FM that: “The issue is of interest to us, we are not into direct management, but we oversee what they do, and it will be difficult to be able to unearth some of these malpractices within the institution. We are programmed to meet DVLA and the issues will be brought to the fore.”

He added that the Committee has received reports about delays in the printing of drivers’ licenses and will seek to get to the bottom of that matter too.

“We also have issues about ID cards kept for a long time. We were given certain information, but what we are hearing now is a contradiction, so there is a need to meet the DVLA executives to resolve the issue,” he reiterated.