Mahama Orders Termination of Shady SML Contracts With Government Following Special Prosecutor Probe

Mahama Orders Termination of Shady SML Contracts With Government Following Special Prosecutor Probe

  • President John Mahama ended all contracts between the Government of Ghana and Strategic Mobilisation Ghana Limited
  • This directive was contained in a letter to the presidency addressed to the Minister of Finance, Dr Cassiel Ato Forson
  • The Office of the Special Prosecutor recently concluded its investigation into the Strategic Mobilisation Ghana Limited deals with the state

President John Mahama has directed the immediate termination of all contracts between the Government of Ghana and Strategic Mobilisation Ghana Limited (SML) following the conclusion of an investigation by the Office of the Special Prosecutor.

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This directive was contained in a letter to the presidency addressed to the Minister of Finance, Dr Cassiel Ato Forson.

The Office of the Special Prosecutor, Ghana Revenue Authority, GRA, Strategic Mobilisation Ghana Ltd, SML, SML scandal, John Mahama
President John Mahama directs the immediate termination of all contracts between the Government of Ghana and Strategic Mobilisation Ghana Limited (SML). Credit: John Dramani Mahama
Source: Facebook

The letter instructed the Finance Minister to take immediate steps to end all existing agreements involving SML.

This is in fulfilment of an earlier pledge the president made.

The Office of the Special Prosecutor recently concluded its investigation into the revenue assurance contracts between Strategic Mobilisation Ghana Limited and the Ghana Revenue Authority, which examined issues related to alleged procurement irregularities, contractual overreach, and value for money concerns.

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The investigation showed that there was no genuine need for engaging SML for the services it purported to perform.

The contracts were found to be self-serving official patronage, sponsorship, and promotion based on false and unverified claims.

The Office of the Special Prosecutor is thus planning new corruption charges for former Finance Minister Ken Ofori-Atta.

Others facing charges are current and former Commissioner-Generals of the GRA, Dr. Ammishaddai Owusu-Amoah and Emmanuel Kofi Nti, Ghana Revenue Authority officials Isaac Crentsil and Kwadwo Damoa.

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Ernest Akore, former Technical Advisor at the Ministry of Finance, will also be charged by the Special Prosecutor.

About the SML scandal

A Fourth Estate investigation first questioned the impact of Strategic Mobilisation Ghana Limited, leading the firm to admit 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 Strategic Mobilisation Ghana Limited the contract.

The Office of the Special Prosecutor, Ghana Revenue Authority, GRA, Strategic Mobilisation Ghana Ltd, SML, SML scandal, John Mahama
The Ghana Revenue Authority is under scrutiny because of the SML scandal
Source: Getty Images

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 2024, then-President Akufo-Addo commissioned KPMG to investigate the contract following an exposé by the Fourth Estate, which questioned the impact of Strategic Mobilisation Ghana Limited in the downstream petroleum sector despite being awarded a 10-year $100 million contract.

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

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Following the audit, the GRA terminated two contracts with SML; the Audit and External Verification Service Contract (AEVS).

Kpebu slams Kissi Agyabeng over Ofori-Atta's case

YEN.com.gh reported earlier that a lawyer, Martin Kpebu, slammed the Special Prosecutor, Kissi Agyabeng, over his handling of the corruption-related investigation involving Ofori-Atta.

Kpebu claimed that Agyabeng failed to take swift action on the former Finance Minister when reports of his alleged shady transactions in the Ghana Revenue Authority and Strategic Mobilisation Ghana Limited first came to light.

Proofreading by Samuel Gitonga, copy editor at YEN.com.gh.

Source: YEN.com.gh

Authors:
Delali Adogla-Bessa avatar

Delali Adogla-Bessa (Head of Current Affairs and Politics Desk) Delali Adogla-Bessa is a Current Affairs Editor with YEN.com.gh. Delali previously worked as a freelance journalist in Ghana and has over seven years of experience in media, primarily with Citi FM, Equal Times, Ubuntu Times. Delali also volunteers with the Ghana Institute of Language Literacy and Bible Translation, where he documents efforts to preserve local languages. He graduated from the University of Ghana in 2014 with a BA in Information Studies. Email: delali.adogla-bessa@yen.com.gh.