The Chief Executive of Foto-X has described as a joke suggestions by the A-G’s Department that a contract with the vehicle licensing body is illegal.
Dr. Ian Kluvitse says the claim that the $9.9 million contract for the printing of licenses was unenforceable cannot be sustained.
He was speaking on Joy FM Tuesday in respect of the raging controversy over astronomical changes in contract sum between Foto-X and the Driver Vehicle and Licensing Authority (DVLA). It had changed from $3.6million to $9.9million. Dr. Kluvitse’s company entered into a contract with the DVLA in 2006 for the procurement of equipment and establishment of 22 licensing centres across the country.
The contract sum was $2.72 million and was meant to run over a period of six years. The contract was renewed in 2012 but the sum jumped to $9.9 million, raising eyebrows and prompting investigations by the Economic and Organised Crimes Office.
A former DVLA boss, Mr. Justice Amegashie failed to explain the jump in the cost of the contract and begged for forgiveness when he appeared before a parliamentary committee. EOCO in a report recommended his prosecution for causing financial loss to the state. It also asked the Attorney-General to prosecute Foto-X for fraud.
The Attorney-General’s Department assessed EOCO’s report and came out with its own report. The department said the second agreement ($9.9 million contract), could not be enforced because some condition precedent had not been satisfied. “The second agreement has been executed by the parties. However, the parties also executed what they refer to as "Statement of Understanding between DVLA and Foto-X. The statement of understanding states in paragraph 2 that the second agreement was not “finality," and that an addendum would be signed to address issues raised by both parties that had not been addressed in the second Agreement.
The A-G said in effect the parties have not reached final agreement and, therefore, the second Agreement cannot be enforced, the Ghanaian Times newspaper reported.
“I’d say this is a big joke,” Dr. Kluvitse said in his response.
He said the parties had by conduct satisfied the condition precedent.
"Yes, there was that Memoandum of Understanding but matters went afr beyong that; Foto-X did have meetings; the issues that were being referred were ironed out; Foto-X went ahead to procure equipment; the equipment was customised for the Ghana DVLA by the supplier under the approval of the Ghana DVLA; I can show you a document that has 12 signatures approving every stage of the customisation of both the software and the hardware; not only were these items approved but when the manufacturer finished their job, the DVLA Chief Executive actually did travel to Germany with Foto-X to accept the equipment."
He said there are letters showing the DVLA asked Fot-X to install the equipment so "to say that this was not a finality" is strange.
Dr. Kluvitse explained that the claims about inflation of the contract sums were baseless.
He said the project was a build and operate one and that the contract sums were actually money Foto-X was investing the project.
According to him, the company under the terms of the contract, is entitled to 80% of all proceeds of printing of licenses from the 22 centres.
Dr. Kluvitse said he was confused by all the brouhaha going on.
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