The Ghana Revenue Authority (GRA) has formally requested President Akufo-Addo’s permission to allow the continued operation of the Strategic Mobilisation Ghana Limited (SML) system.
This system, aimed at enhancing revenue assurance and control, has been put in place.
“The system will continue to record data real-time until your further directive after the conclusion of the investigation.
“Having carefully reviewed the concern and based on our own understanding of the contracts and the deliverable, we are of the opinion that the system that has been installed to enhance revenue assurance, for control purposes, and also to aid with the ongoing investigation could with your kindest permission be allowed to run,” portions of GRA’s letter said.
The GRA emphasized that the system would consistently record real-time data until further directives are given post the ongoing investigation.
In a response dated January 16, 2024, and signed by the Commissioner General of GRA, Rev. Dr Amishaddai Owusu-Amoah, the appeal was made due to concerns raised by SML about potential operational ramifications and disruptions if the intended suspension of operations takes place.
The GRA, after a careful review of these concerns and contract details, expressed the opinion that, with the President’s permission, the installed system should be allowed to run.
The context of this appeal arises from President Akufo-Addo’s decision on January 2 to suspend the GRA/SML contract and appoint the international audit firm KPMG to conduct an audit within a two-week timeframe.
Despite the suspension, GRA noted that it could result in revenue losses, even though no payments would be made on the contract until the President’s directive is clarified.
The SML contract, awarded by the Ministry of Finance and GRA, entails the company receiving over $100 million annually for a five-year period, renewable for another five years.
The President’s decision to suspend the contract followed a parliamentary resolution to investigate it, prompted by revelations from The Fourth Estate about false claims made by SML regarding a previous contract for revenue assurance in the downstream petroleum sector.
The investigation exposed discrepancies in SML’s claims of saving Ghana GHS3 billion, which GRA initially supported without providing specific details.
Civil society organizations, such as the Africa Centre for Energy Policy and IMANI Africa, challenged GRA’s assertions, citing data inconsistencies on the Ministry of Finance and National Petroleum Authority websites.
The Ministry of Finance’s subsequent instruction in June 2023 to expand SML’s work to include monitoring oil and gold production further fueled skepticism, with some members of parliament, civil society groups, and anti-corruption campaigners questioning the basis for awarding contracts to SML in sectors that already had existing protective systems.