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$9.9m contract with DVLA is legal – Foto-X CEO

Dr. Ian KluvitseThe 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’s Super Morning Show Tuesday in respect of the raging controversy over some changed contract sums between Foto-X and the Driver Vehicle and Licensing Authority (DVLA).

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.

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