A group of prominent Non-Governmental Organisations (NGOs), such as the Centre for Democratic Development (CDD-Ghana) and the Media Foundation for West Africa (MFWA), has dragged the Strategic Mobilisation Limited (SML) to court after allegedly misappropriating an amount of GHS1 billion.
Joining them in this legal action are the Africa Centre for Energy Policy (ACEP), the Ghana Anti-Corruption Coalition (GACC), and the Human Rights and Governance Centre.
This legal move follows an in-depth audit carried out by international firm KPMG, commissioned earlier this year by President Nana Addo Dankwa Akufo-Addo.
The audit was launched to examine the contractual agreements between the Ghana Revenue Authority (GRA) and SML, with a particular focus on the procedures and approvals related to the contract.
The original purpose of the GRA-SML contract was to boost revenue assurance in vital sectors of Ghana’s economy, including the downstream petroleum sector, upstream petroleum production, and the minerals and metals value chain.
The goal was to streamline revenue collection, ensuring greater transparency and efficiency in these high-revenue sectors.
However, the KPMG audit uncovered significant procedural errors and regulatory violations in awarding the contract. Specifically, the GRA did not obtain the required approvals from the Public Procurement Authority (PPA) and failed to seek parliamentary oversight before finalizing the agreement with SML.
These oversights represent clear violations of Ghana’s public procurement laws, which are intended to ensure accountability, transparency, and fairness in the management of public funds.
In light of these findings, the coalition of NGOs has taken legal action against the government, aiming to hold those responsible for the breaches accountable and to recover the substantial funds disbursed under the unlawful contract.
The NGOs contend that the failure to follow due process and legal requirements not only undermines the rule of law but also leads to significant financial losses for the state, which could have been directed toward essential development projects and public services.
The government and the GRA have yet to release official responses to the lawsuit.