Foto X boss defends allegedly fraudulent DVLA contract

quist

June 7, 2016 12:12 PM

The Economic and Organized Crime Office, amongst other things, called for the prosecution of the former director of the DVLA for causing financial loss to the state.

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The Chief Executive Officer of Foto-X, the digital printing company caught in the middle of the DVLA’s allegedly illegal $9.9 million printing contract has described the allegations of fraud in the contract process as a joke.

The Attorney General’s department, also, after studying EOCO’s report on the matter, described the contract as unenforceable and unsustainable.

In response to these allegations, however, CEO of Foto X Dr. Ian Kluvitse said the allegation by the AG’s Department “Is a big joke, and extremely laughable.”

Foto X was giving a $2.7 million contract in 2006 to supply equipment and also establish 22 registration centres across the country in the course of 6 years.

After 2012, the contract was renewed, but at an inflated cost of $9.9 million, raising eyebrows and prompting investigations by the Economic and Organised Crimes Office.

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,

A former DVLA boss, Mr. Justice Amegashie failed to explain the cost of the contract and begged for forgiveness when he appeared before a parliamentary committee.

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