SML contract shoots GRA's revenue in petroleum downstream to over GH¢12bn

Details emerging from the contract between Strategic Mobilisation Ghana Limited (SML) and the Ghana Revenue Authority (GRA) have revealed positive outcomes for the country's revenue.

Since the revenue assurance contract was signed in December 2019, operations commenced in June 2020 after a one-month pilot period, resulting in a noticeable increase in revenue.

According to documents obtained by GhanaWeb from the Ghana Revenue Authority, revenue after the deal has surged by GH¢12,981,376,688.00.

This significant rise in revenue shows a trend from the contract that has raked in benefits in the country's financial interests.

In a lawsuit filed on Thursday, February 15, SML claims that the recent investigative publication on its operations has caused irreparable damage to its reputation in the public domain, leading to negative consequences for its operations.

Consequently, SML is seeking compensation totalling GH¢10 million. This includes one million for defamation and nine million for exemplary damages, citing reckless and malicious reporting.

"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," the documents said.

Furthermore, they are requesting 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 its December 2023 investigative report, implicated Strategic Mobilisation Ghana Limited (SML), the Ghana Revenue Authority (GRA), and the Ministry of Finance.

The report alleged that GRA granted SML a 10-year contract with an annual payment of $100 million, raising concerns about possible irregularities.

SML refuted the claim, asserting that it had a five-year contract instead.

The GRA, in a statement on December 20, 2023, maintained that the proper procurement procedures were followed.

On January 3, 2024, SML welcomed President Nana Addo Dankwa 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 extended the limit given 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.

About 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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