Economy losses 30% revenue in ‘dubious’ vehicle registrations

Business News of Tuesday, 12 September 2017

Source: thebftonline.com

2017-09-12

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About 70% of private vehicles are registered without going through the due process of inspection and testing as directed by the Ministry of Transport, Godfred Takyi, a Market Research Analyst has said.

That this omission, cost government about 30% of the total revenue which finds its way into private pockets.

The DVLA collected GH?29,204,638.09 in revenue during the first half of the year 2016, which came from the registration of 68,647 vehicles and projected to register 411,882 vehicles worth GH¢58,409,276.18 at the end of 2016, the report said.

The industry projection is GH¢ 3,504,556,570.8 in the next five years, but the company may miss it target if it does not check the revenue leakage by tightening it supervision and inspection activities.

Out of a total of 2,032,538 registered vehicles plying the roads of the country, DVLA is able to register only 1,045138 every year, this excludes the 15,680 vehicles registered by the security services such as the Ghana Army Forces, the Ghana Police Service and Prison Service and other Government Ministries.

This come at a time when the DVLA has introduced an E-roadworthy certificate, an electronic system, which is aimed at eradicating fake roadworthy documents from the system and also to ensure that all vehicles plying the roads are actually roadworthy to safeguard the safety of drivers, passengers and other road users.

The system is also aimed at preventing the leakage of revenue orchestrated by middlemen popularly known as “Goro boys” to ensure that the government realizes actual revenue generated by the Authority for national development.

“All motor vehicles used on the road shall be examined to determine that they conform to the prescribed requirements relating to the construction and use of the vehicle, its accessories and other equipment. That the condition of the motor vehicle is such that its use on the road will not involve a danger or injury to any person or damage to property,” the report said.

To eliminate the fraudulent activities and leakages, the report notes, DVLA must mandated more Private Vehicle Testing Stations (PVTS) to operate to provide services closer to people and also to decongest DVLA premises to avoid long queues which encourages illegal activities.

The Driver and Vehicle Licensing Authority (DVLA) is a public organization under the Ministry of Transport. It was established in 1999 by an Act of Parliament (Act 569), 1999. DVLA replaced the Vehicle Examination and Licensing Division (VELD).

By the Act, DVLA is to provide a regulated framework for an enhanced and more effective administration of drivers and vehicles. Its key stakeholders are the Motor Transport and Traffic Department (MTTD) of the Ghana Police Service, Transport Associations, National Road Safety Commission, Ghana National Association of Driving Schools (Ghana Drive), National Insurance Commission, Ghana Automobile Distribution Association, Government Technical Training Centre, National Drivers Academy, the Judiciary and the Motoring Public.

DVLA’s mandate is to promote good driving standards in the country and ensure the use of roadworthy vehicles on the roads and other public places. The DVLA Act 569, 1999, spells out the functions of the Authority to create standards and methods for the training, testing of driving instructors, drivers of motor vehicles and riders of motor.

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