Abrogate Drivers’ Fraudulent Contract – AG

The Attorney General’s (AG’s) Department has instructed the Driver and Vehicle Licensing Authority (DVLA) to abrogate its $2,772.000 worth of contract with Foto-X Limited.

The DVLA had in 2012 entered into a 10-year contract with Foto-X limited to design, install, maintain and to service the system for personalizing and production of permanent drivers’ licences.

The said contract came on the heels of a similar one implemented from 2006 to 2012 which was supposed to be a turnkey project.

Per the contract, Foto-X was to hand over the system and the equipment to DVLA to manage by itself at the end of the contract in 2012 but failed to do so.

But the latest agreement, riddled with discrepancies in the contract sum and implementation, led to the lodging of a complaint at the Economic and Organized Crime Office (EOCO) for investigation, the report of which was submitted to the Attorney General for advice.

The report on the probe by the EOCO recommended the termination of the contract.

‘…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,’ it instructed.

The report, signed by K. Asiama-Sampong,
a Chief State Attorney on behalf of the AG dated November 4, 2015, said the findings of EOCO disclosed that within the contract period of six years Foto-X was paid GH¢20,961,785 instead of GH¢5,544,000 as the equivalent of the original contract sum of $2,772,000, adding that the overpayment which was discovered, was GH¢15,417,785.

It said the wrongful payment amounted to GH¢3,011,021.29 being the cost of consumables which price had already been factored in the contract sum of $2,772.000 to Foto-X.

The complaint investigated the wrongful collection of moneys as reimbursement for consumables which had already been factored in the contract sum of $2.772.000 and overpayment of the contract sum of $2.772.000 which in cedi equivalent, amounts to GH¢5,544.000, to the consultant.

Others were fraudulent contract on the basis of
renewing the first contract and changing the contract sum of $3,600,000 to $9,976,209.50 by the consultant without due recourse to the Public Procurement Act 663 (Act 2003).

Ian Kluvitse, the Chief Executive of Foto-X, had told Joy FM on Tuesday that he was yet to see a copy of the EOCO report.

He was however, emphatic that whatever the amount that is being peddled in the media was rather what his company invested in the contract.

He also confirmed that the parties agreed on 80% for Foto-X and 20% for DVLA on revenues that would accrue from the cards he printed.

When asked about his motivation for still working with the DVLA after the latter defaulted in payment for three years, Mr. Kluvitse said he was ‘working with the hope of getting paid.’

Responding to claims by the DVLA that the $9.9 million quoted was a typographical error, Mr. Kluvitse said the company had nothing to do with any inflated figure. The contract, he explained, were submitted to the DVLA in February 2012 but was signed in August 2012.

By Jeffrey De-Graft Johnson

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