The Ghana Revenue Authority (GRA) and Strategic Mobilization Limited (SML) have been in the spotlight recently, following allegations of irregularities and a lack of transparency in their contractual arrangement.
The contract, which was signed in 2019 and consolidated in 2023, covers revenue assurance services in the downstream and upstream petroleum sectors, as well as the minerals and metals value chain.
However, the convention has raised questions from various stakeholders, including the media, civil society groups and parliament, who have called for more accountability and scrutiny of the deal.
What they say
According to a GRA press release, the contract was awarded to SML based on its performance in monitoring the downstream oil sector and providing direct real-time data reconciliation.
The GRA claimed that SML’s work had led to a significant increase in reported volumes in the sector, from an average of 350 million liters per month in 2018 and 2019 to 450 million liters per month from 2020/2021.
The GRA also stated that SML’s services were necessary to address systemic deficiencies and revenue leakages in the upstream oil production and minerals and metals value chain.
Between the lines
However, some critics have disputed the validity and legality of the contract, alleging that it was questionable, unnecessary and overpriced. They also accused the Finance Minister of bypassing due process and parliamentary approval to award the contract to SML.
Some have also argued that the SML’s role overlaps with that of other existing institutions, such as the National Petroleum Authority, the Petroleum Commission and the Minerals Commission, which are mandated to regulate and monitor these sectors.
The consequences
In response to these concerns, the President Nana Addo Dankwa Akufo-Addo ordered an immediate audit of the SML/GRA contract. He appointed KPMG, a reputable auditing firm, to undertake the audit within two weeks and submit a report with appropriate recommendations.
It also directed the Ministry of Finance and the GRA to suspend execution of the contract, pending the submission of the audit report, including any payments currently contemplated under its terms.
The audit is expected to ascertain the rationale or needs assessment carried out prior to the GRA’s approval of the contract. assess the appropriateness of the contracting methodology; verify compliance with legal standards and industry best practices; assess the degree of alignment between current activities and the intended scope of the contract; assess the value or benefit SML has provided to GRA . and review financial arrangements, including pricing structures, payment terms and resolution of any financial compliance issues.
The President’s decision was welcomed by some stakeholders such as OccupyGhana, a pressure group, who called on him to allow the Auditor General to audit the contract instead of a private company.
They also urged him to uphold Article 187 of the Constitution, which empowers the Auditor General to audit all public accounts and report to Parliament.
What happens next?
The outcome of the audit is likely to have significant implications for the future of the SML/GRA contract as well as Ghana’s revenue mobilization efforts. It is hoped that it will clarify and bring closure to the matter and ensure that public resources are used efficiently and effectively for national development.
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