By Investigative journalist Manasseh Azure Awuni has advocated for the complete termination of the contentious revenue mobilization agreement between the Ghana Revenue Authority (GRA) and the Strategic Mobilization Ghana Ltd (SML).
During an appearance on Joy FM’s Super Morning Show on Thursday, May 23, the journalist, whose collaborative efforts with the Fourth Estate, a project of the Media Foundation for West Africa (MFWA), brought attention to the transaction, expressed his dissatisfaction, stating, “I’m not impressed about the fact that they [Government] are still trying to keep aspects of this contract.”
He highlighted the absence of evidence indicating that SML held oil marketing companies affiliated with political actors accountable.
According to him, the mentioned Oil Marketing Companies (OMCs) are involved in diversion, dilution, and under-reporting, resulting in substantial financial losses for the government and the nation.
“…the fact that politically affiliating OMCs sell the products, take the taxes, and don’t go back to pay to the government, these are the avenues through which the state loses revenue,” he said.
Based on this, Mr. Awuni believes that SML is failing to fulfill its mandated responsibilities, making termination of the contract the most appropriate course of action.
“And from this report, I have yet to see anywhere that SML came in and is tackling this problem. So the best move is to clear out this deal,” he said.
SML Controversy
In April of this year, an investigation by The Fourth Estate unearthed numerous irregularities in the contracts involving Strategic Mobilisation Limited (SML), the Ministry of Finance, and the Ghana Revenue Authority (GRA).
The investigation uncovered inconsistencies in SML’s assertions regarding its services aimed at addressing revenue losses in the downstream petroleum sector.
Following this revelation, President Akufo-Addo instructed KPMG to conduct a comprehensive audit.
Read also: According to the KPMG Report, SML is indebted to GRA for GH¢31.88 million in taxes
Despite SML’s claims that its services effectively targeted under-declaration, dilution, and diversion of petroleum products, evidence presented by The Fourth Estate indicated that these tasks were being performed by other entities, including other companies and the National Petroleum Authority (NPA).
Christian Tetteh Sottie, Managing Director of SML, acknowledged the inaccuracies and promptly removed the false claims from the company’s website.
Despite these revelations and other admitted falsehoods, Minister of Finance Ken Ofori-Atta initiated a process in 2023 to expand SML’s contracts to include the gold and oil producing sectors. This decision significantly increased the annual contract sum to over $100 million.
Following an investigation by The Fourth Estate and subsequent public outcry, President Akufo-Addo suspended the contracts and commissioned KPMG to conduct an audit and submit a report.
While the president released a press statement regarding the findings, the full report unveils even more damning revelations about SML’s operations within its contracts with the Ministry of Finance and the GRA.
