DVLA CEO raises alarm over GHC160M contract

The Chief Executive Officer (CEO) of the Driver and Vehicle Licensing Authority (DVLA), Julius Neequaye Kotey, has raised serious concerns regarding a contract agreement that has left the Authority burdened with a massive financial liability.

In a recent interview on TV3, Kotey disclosed that a company, whose identity he chose not to reveal, had entered into a contract with the DVLA to provide system monitoring services.

However, Kotey expressed confusion over the nature of the company’s work, stating that “anybody you ask doesn’t seem to know what the real work of the company is.”

According to the DVLA CEO, the agreement stipulated that the Ministry of Finance would pay GHC50 million annually for the service.

However, Kotey revealed that the payments have not been made in the past three years, leaving the Authority in a difficult financial position.

“We are in the third year, and they never paid any pesewa. Yet, they expect us to pay all these monies,” he stated, highlighting the mounting financial strain.

The situation has worsened since the contract, which was signed in 2023, binds the DVLA to a system that began operating on January 1.

As a result, the Authority now faces the prospect of making payments totaling approximately GHC160 million by the end of the year.

Kotey has expressed his concerns by forwarding the contract to the sector minister, who also serves as the Member of Parliament for Saboba, for further scrutiny. “We take it and see what the issues are,” Kotey said, signaling that the matter is being examined more thoroughly.

Additionally, Kotey pointed out certain discrepancies in the structure of the contract. He explained that while the DVLA already manages roadworthiness services, the system contract appears to operate separately rather than being integrated into the existing operations of the Authority.

This lack of integration raises questions about the efficiency and value of the contract, adding further to the ongoing concerns.

The DVLA is now seeking a resolution to the issue, with hopes of addressing the financial burden and clarifying the true scope of the system monitoring services provided by the contracted company.