Ronor Motors Challenges CHRAJ’s Findings Over Alleged Corruption
Ronor Motors Ghana Limited, one of three companies accused by the Commission on Human Rights and Administrative Justice (CHRAJ) of being overpaid US$826,551.00 in a contract with the Ghana Revenue Authority (GRA), has declared its intention to contest the findings in court. The company claims the commission’s conclusions are “unfair, dangerous, and a threat to Ghanaian enterprise.”
The allegations stem from a contract involving the supply of vehicles to the GRA, which led to significant financial losses for the state. According to CHRAJ, former Commissioner-General Dr Ammishaddai Owusu-Amoah was found responsible for procurement irregularities, including fraud and corruption, which resulted in a loss of GHS 8,971,933.43—equivalent to the aforementioned US$826,551.00.
Background of the Allegations
The dispute began after the Movement for Truth and Accountability (MFTA), a civil society organization, filed a complaint in August 2022. They alleged that Dr Owusu-Amoah engaged in fraudulent procurement practices when awarding contracts for vehicle and logistics services to the GRA. CHRAJ’s investigation revealed that the GRA awarded contracts worth millions of cedis to three companies—Ronor Motors Ltd, Sajel Motors & Trading Company Ltd, and Telinno Ghana Ltd—on October 1, 2021, through single-source procurement.
The commission found that the GRA misled the Public Procurement Authority (PPA) into approving the use of the single-source method under questionable circumstances, violating the Public Procurement Act, 2003 (Act 663). Additionally, Sajel Motors and Telinno Ghana were discovered to have no verifiable business locations and had entered into separate contracts with Ronor Motors for the same vehicles. All three companies were also found non-compliant with tax laws during their transactions with the GRA.
Financial Loss and Legal Implications
CHRAJ stated that the contracts were “tainted with fraud and corruption,” with inflated pricing causing direct financial losses to the state. As the head of the GRA, Dr Owusu-Amoah was held accountable for the irregularities under his supervision. The commission ordered that he be disqualified from holding any public office for five years and referred him, along with the directors of the three companies, to the Attorney-General for possible prosecution and recovery of the lost funds.
Furthermore, CHRAJ urged the PPA to debar Sajel Motors and Telinno Ghana from future dealings with the state due to their involvement in misrepresenting their capacity to execute the contracts. It also called for stricter enforcement of the Public Procurement Regulations, 2022 (L.I. 2466), particularly regarding single-source procurement, to prevent similar breaches and ensure value for money in public contracts.
Ronor Motors’ Response
In response to the findings, Ronor Motors’ solicitor, Joseph Dindiok Kpemka, criticized the commission’s conclusion as “simplistic.” He argued that the commission merely quoted the price difference between Toyota Ghana Ltd and the prices quoted by Ronor Motors and the other two companies. The company rejected claims of fraud and overpricing, stating that the contract had gone through all procurement procedures.
“Suffice it to say that the conclusion by CHRAJ means that 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,” the statement said.
Ronor Motors emphasized that it complied with all statutory regulations and followed due process before the contract was awarded. It added that the prices quoted by the company were verified and approved by the PPA without any misrepresentation or acts of fraud.
“The conclusion by CHRAJ means that 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,” the statement continued.
The company also highlighted its reputation as a reliable and law-abiding entity that has delivered thousands of vehicles to government institutions and members of parliament without blemish. It concluded by stating that legal processes would be filed to challenge the findings in the High Court.
Ongoing Developments
Sajel Motors & Trading Company Ltd and Telinno Ghana Ltd have yet to respond to CHRAJ’s findings. Dr Owusu-Amoah, the former commissioner-general of GRA, is also yet to comment on the allegations.