In a shocking revelation from an investigative report titled “THE GH₵ 3 BILLION LIE” by Investigative journalist Manasseh Azure Awuni’s Fourth Estate , released on December 18, 2023, Finance Minister Ken Ofori-Atta is under scrutiny for his alleged involvement in a scandalous oil deal with Strategic Mobilisation Ghana Limited (SML).
The investigative series by The Fourth Estate exposes Strategic Mobilisation Ghana Limited (SML), which claimed to have saved Ghana over GH₵3 billion in revenue through its contract with the Ministry of Finance and the Ghana Revenue Authority (GRA). However, the investigation reveals that these claims were entirely false.
SML’s Managing Director, Christian Tetteh Sottie, when confronted, disowned the GH₵3 billion figure, attributing it to a misinterpretation by the media. The company faced further scrutiny for false assertions that its services curbed malpractices in the petroleum industry, a claim debunked by evidence provided during the investigation.
Notably, SML admitted that its ultrasound meters at the nation’s fuel depots were less accurate than the certified meters at the depots’ loading gantries. Despite these discrepancies and the admission that SML never detected any under-declaration, the Ministry of Finance expanded the scope of SML’s work in June 2023.
A letter from the Ministry of Finance dated June 22, 2023, revealed that Finance Minister Ken Ofori-Atta instructed the GRA to include upstream oil drilling and gold mining in SML’s responsibilities. Representatives from GRA and SML subsequently met with the Ghana Chamber of Mines to discuss the contract’s execution.
Under the new contract, SML stands to receive US$0.75 for every barrel of oil produced in Ghana, translating to a minimum daily earning of US$120,000. Additionally, the company will receive 0.75% of the total amount of gold produced in Ghana, potentially amounting to US$50 million based on 2022 production figures.
The combined earnings from the downstream and upstream petroleum sectors, along with the gold sector, would exceed US$100 million annually. This controversial contract, not acknowledged by the Petroleum Commission, has raised concerns about unnecessary costs and potential revenue loss for Ghana.
Benjamin Boakye, Executive Director of the Africa Centre for Energy Policy (ACEP), criticized SML’s role, deeming it needless and potentially detrimental to Ghana’s revenue. The Petroleum Commission, responsible for regulating the upstream sector, claims to have no knowledge of the contract and has no reported leakages in the sector.
As the details of this scandal unfold, Finance Minister Ken Ofori-Atta faces mounting accusations of betraying Ghana’s financial interests in a deal that could cost the government more than the annual revenue from various taxes.
The report is available on The Fourth Estate’s website https://thefourthestategh.com/ and social media platforms.