Ronor Motors vows legal action against CHRAJ over US$827k overpayment allegation in GRA vehicle deal

A legal battle is brewing between a major Ghanaian indigenous company and a state anti-corruption body, as Ronor Motors Ghana Ltd announces its decision to challenge corruption findings of the Commission on Human Rights and Administrative Justice (CHRAJ) at the High Court.

The controversy surrounds a contract for the supply of vehicles and logistics to the Ghana Revenue Authority (GRA), in which CHRAJ alleged a massive US$826,551.00 overpayment.

The CHRAJ investigation stemmed from a complaint filed by the Movement for Truth and Accountability, which alleged “corruption, fraud and procurement breaches” in the award of contracts to Ronor Motors, Sajel Motors, Telinno Ghana Ltd, and Trading Company Ltd.

READ ALSO : CHRAJ finds former GRA boss liable for procurement breaches costing Ghana nearly 9 million cedis

The complaint specifically named the former GRA Commissioner General, Rev. Ammishadai Owusu Amoah, as the respondent.

In its decision, CHRAJ concluded that Ronor Motors and two other companies were overpaid the substantial sum of $826,551.00.

This conclusion, according to Ronor Motors’ legal representatives, was reached using a “simplistic” metric by the difference between the contract prices quoted by the companies and the prices quoted by TOYOTA GHANA LTD for the same vehicles.

Ronor Motors vehemently rejected this method, arguing that it essentially suggests:

“…every Government Institution in Ghana wanting to buy TOYOTA vehicles must purchase the same only from TOYOTA GHANA LTD and no other company, including indigenous Ghanaian companies,” lawyer for the company, Joseph Dindiok Kpemka, stated in a release on Thursday, November 6.

In its press release, Ronor Motors insisted it followed every necessary legal procedure, noting that its quoted prices were subjected to scrutiny by the highest procurement authority in the state.

“It must be stated unequivocally that Ronor Motors complied with all statutory regulations and followed due process before the said contract was awarded.”

The company specifically highlighted the pivotal role of the Public Procurement Authority (PPA) in the process:

“In fact, and indeed, the prices quoted by Ronor Motors were verified and approved by the Public Procurement Authority without any misrepresentation or acts of fraud.”

The company’s solicitors questioned the Commission’s oversight, stating:

“It is strange that CHRAJ is impugning the contract sum without due regard to the approval by PPA (the only authority by law responsible for determining and approving prices of all public procurements).”

Ronor Motors, described as a reliable and law-abiding Ghanaian entity that has delivered “thousands of vehicles to Government Institutions and Honourable Members of Parliament over the years without blemish”, maintains that its hard-won reputation must be protected.

The company’s solicitor, Mr Kpemka, confirmed that Ronor Motors is heading to court to clear its name, setting the stage for a major legal clash that could redefine the scope of CHRAJ’s power in procurement disputes.

The official notice reads:

“In conclusion, our client instructs us to GIVE NOTICE AND NOTICE is hereby served that we shall file legal processes to challenge the findings and conclusions at the High Court to vindicate the hard-won reputation of our client.”

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DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.