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BusinessSML contract boosts GRA revenue in petroleum downstream to more than GHS12bn+

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SML contract boosts GRA revenue in petroleum downstream to more than GHS12bn+

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Following the execution of the revenue assurance contract between Strategic Mobilisation Ghana Limited (SML) and the Ghana Revenue Authority (GRA), details have emerged showcasing favorable outcomes for the country’s revenue.

The contract, inked in December 2019, saw operations kick off in June 2020 following a one-month pilot phase, resulting in a noticeable uptick in revenue. Documents accessed by Joy Business from the Ghana Revenue Authority indicate that revenue has soared to GH¢12,981,376,688.

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This substantial revenue surge suggests that the contract has been advantageous for Ghana’s financial well-being. However, amidst these positive developments, SML has initiated legal action against the media outlet responsible for the release of “The GH¢3bn Lie Documentary.”

In a lawsuit filed on Thursday, February 15, SML alleges that the publication has inflicted irreparable harm to its reputation in the public sphere, leading to adverse repercussions for its operations. Consequently, SML is seeking compensation amounting to ¢10 million.

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“Plaintiff says that the onslaught of backlash from the public which has arisen from the Defendants’ false reportage has adversely impacted Plaintiff’s operations.”

“Plaintiff says that although it published rejoinders to the Defendants’ false reportage, the Defendants have failed and/or refused to retract and apologise to the plaintiff for the false information they have consistently peddled.”

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In addition to seeking compensation, Strategic Mobilisation Ghana Limited (SML) is petitioning for a perpetual injunction against the publication of further defamatory material, a retraction and apology, and any other orders deemed appropriate by the High Court.

The Fourth Estate, in a December 2023 investigative report, implicated Strategic Mobilisation Ghana Limited (SML), the Ghana Revenue Authority (GRA), and the Ministry of Finance, alleging irregularities. The report claimed that GRA granted SML a purported 10-year contract with an annual payment of $100 million, sparking concerns about possible improprieties. SML countered the claim, asserting that it had a five-year contract instead. In response, GRA, in a statement on December 20, 2023, maintained that proper procurement procedures were followed.

On January 3, 2024, SML welcomed President Akufo-Addo’s directive to suspend its ongoing revenue assurance operations and undergo an audit of its contract with the GRA and the Ministry of Finance. President Akufo-Addo appointed KPMG, an audit, tax, and advisory services firm, to conduct the immediate audit. SML expressed confidence that the audit would provide a clear and accurate depiction of its operations.

However, President Akufo-Addo granted an extension to audit firm KPMG to complete its audit following its request. Following the extension, KPMG is expected to submit its report on Friday, February 23.

Regarding the deal, the revenue collection and administration body contracted SML to perform revenue audits and assurance control measures in the petroleum downstream sector.

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