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Business News of Monday, 20 April 2015

Source: The Inquisitor

SPC goes to court over DVLA's abuse of powers

Tactics employed by the Chief Executive Officer (CEO) of the Driver and Vehicle Licensing Authority (DVLA) against one of the vehicle testing operators has landed the state agency under the Ministry of Transport into trouble.

Rudolph Beckley, apart from the bully tactics, has caused a huge institutional blunder that is presently not embarrassing only the DVLA, but the Ministry of Transport and the government with his moves against SPC Engineering and Transport Services Limited.

The DVLA's supposed sanctions against the company which is serving a large number of motorists in vehicle testing have backfired and has landed it (DVLA) in court.

SPC has sued the DVLA and the Attorney General over an attempt to close its business for one week.

Even before the suit, the DVLA through its CEO had goofed in the way it served the notice to the company over the intended closure of the company located at Weija, on the Kasoa road.

The all important letter that was to make the intentions of the DVLA clear to SPC was written by the CEO on April 9, 2015, but was delivered to SPC on April 16, 2015.

Interestingly, the letter found its way to some radio stations in Accra that announced the closure of the company two clear days before it was delivered to the company.

SPC Engineering last Friday secured an interlocutory injunction against the DVLA not to close down the company.

SPC in a statement of claim in a suit filed last week Friday at the Fast Track High Court, is seeking an order for injunction restraining the DVLA from unlawfully interfering with its lawful operation.

It is also seeking a declaration that the actions of the DVLA in publishing the suspension of SPC’s operation in the media before notifying it was in bad faith.

In addition to that, SPC wants a declaration that the decision by the DVLA to suspend its operations without the opportunity to respond to the charges, is in breach of the rules of natural justice and an abuse of the powers of the DVLA.

SPC is seeking damages for loss of business as a result of the publication of the suspension of its operations in the media, and the closure of the facility.

In a statement of claim, SPC said that on August 1, 2007, it was authorized by the DVLA to operate as a car testing station at Weija in Accra.

It said, since sometime in 2011, it has been operating as a private car testing center on behalf of the DVLA without any hitches, queries whatsoever, even in the face of delayed payments from the DVLA.

“Sometime on April 16, 2015, Managing Director's attention was brought to a radio broadcast on a number of radio stations in Accra to the effect that the DVLA had suspended operations of SPC Engineering,” it said.

It said: “On April 16, 2015, SPC was served with a letter dated April 9, 2015 from the DVLA, ordering a temporary closure of the facility for one week from April 16, 2015 to April 24, 2015 with a caveat that the facility will be permitted to resume operations when all systems and arrangements have been proven okay.”

It said that prior to the letter, it had neither received any complaint from any customer, state institution, or the DVLA about its operations.

As a result of the publication in the media, SPC's business is likely to suffer substantial damage as potential customers are likely not to patronize the services of the company.

“In the circumstances that SPC was never given the opportunity to respond to any of the allegations contained in the letter, the action of the DVLA to unilaterally suspend the operations of SPC is an abuse of powers vested in the DVLA.

“DVLA has evinced every intention that unless compelled by the orders of the court, it will not abate in the wrongful exercise of powers vested in it to the detriment of SPC Engineering,” it said.