Ronor Motors at center of GHS 8.9 million procurement scandal, CHRAJ rules

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Ronor Motors Limited has been named at the heart of a major procurement scandal that cost the state nearly GHS 9 million, following findings by the Commission on Human Rights and Administrative Justice (CHRAJ).

The auto company was found to have played a pivotal role in a fraudulent scheme involving inflated vehicle contracts and collusion with senior officials of the Ghana Revenue Authority (GRA).

According to CHRAJ’s detailed ruling, Ronor Motors served as the primary supplier in a web of corrupt transactions engineered under the leadership of former GRA Commissioner-General, Dr. Ammishaddai Owusu-Amoah.

Atta Frimpong Addo, CEO of Ronor Motors

On October 1, 2021, the GRA awarded single-source procurement contracts worth millions of cedis to three companies—Ronor Motors Ltd, Sajel Motors & Trading Company Ltd, and Telinno Ghana Ltd—for the supply of vehicles and logistics.

However, investigators discovered that Sajel Motors and Telinno Ghana had no verifiable offices and had fraudulently entered into backdoor contracts with Ronor Motors for the same vehicles—effectively using the company as the operational base for the scheme.

All three firms were found to be non-tax compliant at the time, with Ronor Motors profiting from inflated pricing that caused a financial loss of $826,551 (GHS 8,971,933.43) to the state.

CHRAJ noted that the procurement was approved under misleading representations to the Public Procurement Authority (PPA), breaching the Public Procurement Act, 2003 (Act 663) as amended.

“The contracts were tainted with fraud and corruption,” the report stated, highlighting Ronor Motors’ central role in executing and benefiting from the illegal arrangements.

While Dr. Owusu-Amoah, as the head of the GRA, bore ultimate responsibility for overseeing the transactions, CHRAJ’s ruling extends liability to the directors of Ronor Motors and the two other companies involved.

The Commission has referred all parties—including Ronor Motors’ management—to the Attorney-General for possible prosecution and the recovery of the lost funds.

Additionally, CHRAJ has called on the Public Procurement Authority to consider debarring Sajel Motors and Telinno Ghana from future government contracts and to tighten oversight of single-source procurement approvals to prevent similar abuses.

The ruling, one of the most significant anti-corruption decisions of the year, underscores how Ronor Motors’ participation and influence in the vehicle supply chain enabled the broader fraud scheme to thrive within the GRA’s procurement system.