Bright Simmons is Vice Chairman of IMANI Africa
Bright Simmons, Vice President of IMANI Africa, says the Revenue Guarantee Agreement between the Ghana Revenue Authority (GRA) and Strategic Mobilization Ghana Limited (SML) is an upgrade to the failed Agyapa Royalty Agreement. he claimed.
According to Simmons, the Nana Addo Dankwa Akufo-Addo government created the SML agreement, which was originally intended to guarantee revenue from oil production, after failing to implement the Agyapa Agreement, which sought to pledge Ghana’s mineral resources. It has expanded to include minerals, myjoyonline.com reports. .
The Vice President of IMANI reportedly made this claim during a detailed presentation on SML’s job expectations on Joy FM’s Newsfiles program on April 27, 2024, stating that the company has The project was made despite questions about the contract in which it said it had been tasked by the government to expand its services.
“When we tried to expand this SML service to cover minerals and oil, we are completely convinced that it was just Agyapa. [deal] In a suit and tie.
“If Agyapa fails and we don’t get the percentage of royalties we wanted on every ounce of gold sold in Ghana, we will do more, add oil, You can get a certain percentage from,” he reportedly said.
Simmons said there were numerous irregularities in SML’s contract, including the feasibility of accurately capturing oil production and calculating royalties, especially given concerns about the reliability of data provided by oil companies. Stated.
He criticized the GRA’s reliance on mechanisms to establish royalty payments and highlighted the unique challenges associated with monitoring and regulating the extraction and sale of oil.
“If Tullow or any other company is lying about the oil they produce, it makes no sense to try to prove it through any mechanism.
“And every time oil is produced, you are entitled to a certain percentage. What’s the logic behind that?” he asked.
background:
President Akufo-Addo, in a press statement issued by Presidential Communications Director Eugene Alhin, directed the GRA and the Ministry of Finance to renegotiate the SML contract.
The President stressed the need for close monitoring and regular evaluation to ensure that renegotiations meet expectations.
“There is a clear need for the downstream petroleum audit services provided by SML. The GRA and the country have benefited from these services since SML began offering them. Volumes have increased by 1.7 billion liters and the national KPMG also confirmed 24/7 electronic real-time monitoring of petroleum product spills and partial monitoring of inflows at warehouses where SML installed flow meters, and six-level adjustments made by SML. It was confirmed that there are qualitative advantages such as: .
“This will minimize the occurrence of understatements. However, it is important to review the contract for downstream petroleum audit services, especially the fee structure. Given the level of proficiency, the President directed that the fee structure be changed from a variable fee structure to a fixed fee structure. Contract provisions that merit review also include provisions regarding intellectual property rights, termination, and service delivery expectations. ” he wrote.
The decision to renegotiate the contract follows the President’s acceptance of recommendations by KPMG following an audit of the contract.
The results of the audit created a need for a review of the income guarantee agreement and identified areas that needed improvement to increase its effectiveness.
On January 2, 2024, following revelations by media organization Fourth Estate, President Nana Akufo-Addo commissioned KPMG to investigate the contract between SML and GRA.
President Nana Addo Dankwa Akufo-Addo then received the KPMG audit report on the Revenue Mobilization Agreement between GRA and SML.
The report was delivered to the President on Wednesday, March 27, as announced by Eugene Arkhin, head of communications at the presidential palace, in a Facebook post on Wednesday, April 3.
About Agyapa Royalty Agreement:
In 2020, the Ghanaian government proposed a transaction aimed at raising funds through the floating shares of a company called Agyapa Royalties Limited on the London Stock Exchange.
The deal faced widespread criticism from civil society groups and opposition parties, who claimed it was a secret and corrupt deal that allowed politicians to enrich their own pockets at the country’s expense.
Later that year, journalist Kweku Baako said Gabby Asare Otchere Darko’s firm had acted as a transaction advisor to the government in a deal that failed.
Gabby disclosed that a UK-based law firm was the lead advisor on the transaction, with Africa Legal Associates working for the firm.
One of the big questions that has arisen from the furore surrounding the deal is the role of Osafo-Mafo’s son and Gabby Otchere-Darko.
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