GRA Directs SML To Resume Monitoring Operations In Downstream Petroleum Sector After Scandal

• The Ghana Revenue Authority has permitted Strategic Mobilisation Limited (SML) to resume monitoring operations in the Downstream Petroleum sector
• The authority said the directive is in accordance with President Akufo-Addo’s directives on the KPMG report
• President Akufo-Addo commissioned KPMG to investigate the contract following an exposé by the Fourth Estate

The Ghana Revenue Authority has directed Strategic Mobilisation Limited (SML) to resume monitoring operations in the Downstream Petroleum sector effective June 14, 2024.

An official letter circulating online noted that the directive is in accordance with President Akufo-Addo’s directives on the KPMG report, which was made public.

The approval comes despite audit recommendations to secure parliamentary approval for the SML deal.

“SML is expected to ensure that all systems are fully operational and compliant with the relevant standards and regulations," said a letter to the chamber of bulk oil distributed.

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A letter from the Ministry of Energy dated June 20, 2024, also noted a collaboration with the Ghana Standards Authority, Ministry of Trade, industries and other relevant stakeholders to enforce new standards for measurements in the oil and gas sector based on the Singaporean Standard.

Background to the scandal

After the Fourth Estate investigation questioned the impact of SML, it admitted that it was not performing the advertised services that claimed to tackle under-reporting, diversion and dilution.

The investigation also questioned malfeasance in the procurement process to award SML the contract.

The company has disputed the findings, saying it was given a five-year contract instead.

SML further challenged claims that it takes $100 million annually from its contract.

In January, President Akufo-Addo commissioned KPMG to investigate the contract following an exposé by the Fourth Estate, which questioned the impact of SML in the downstream petroleum sector despite being awarded a 10-year $100 million contract.

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The audit findings prompted the need to review the revenue assurance contract, highlighting areas for improvement to enhance its effectiveness.

Following the audit, the Ghana Revenue Authority terminated two contracts with SML.

The contracts cancelled are the Audit and External Verification Service Contract (AEVS) with SML.

Mahama promises to scrap shady SML contract

YEN.com.gh reported that National Democratic Congress flagbearer John Mahama has pledged to cancel the controversial SML contract at the Ghana Revenue Authority.

Mahama described the deal as corrupt and said it would not have a place under his government.

The shady SML contract is under scrutiny after an investigative report by The Fourth Estate.

Proofread by Berlinda Entsie, journalist and copy editor at YEN.com.gh

Source: YEN.com.gh