President John Mahama
President John Dramani Mahama has ordered the immediate termination of all contracts with the Strategic Mobilisation Ghana Limited (SML) following the completion of an investigation by the Office of the Special Prosecutor (OSP).
The directive, communicated through a letter signed by the Secretary to the President, Dr. Callistus Mahama, and addressed to the Minister of Finance, Dr. Cassiel Ato Forson, instructed that all existing agreements with SML be swiftly brought to an end.
According to the letter, the move forms part of the government’s commitment to accountability and transparency in the management of public resources.
It follows months of scrutiny over the SML contracts, which became the subject of a corruption and corruption-related offences probe by the OSP.
The Finance Minister has been tasked to ensure that the termination process is carried out in full compliance with existing financial and legal procedures.
The OSP recently concluded its investigation into the revenue assurance contracts between SML and the Ghana Revenue Authority (GRA), which examined issues related to alleged procurement irregularities, contractual overreach, and value for money concerns.
According to findings shared by the Special Prosecutor, Mr. Kissi Agyebeng, at a presser in Accra on Thursday, October 30, the investigation revealed that there was no genuine need for engaging SML for the services it purported to perform.
The contracts, he said, were secured through “self-serving official patronage, sponsorship, and promotion based on false and unverified claims.”
SML Responds
Meanwhile, Strategic Mobilisation Ghana Limited has denied any wrongdoing, insisting that its operations were lawful and transparent, while calling for evidence to guide the national conversation.
In a statement by the company’s Lead Counsel, SML said, “We will present all relevant documents before the appropriate authorities. We remain proud of the work done, the controls that governed it, and the measurable value created for Ghana.”
It said SML has efficiently performed on its Transaction Audit and External Price Verification, and the Downstream Petroleum Audit contracts under continuous GRA supervision.
“All payments were tied to verified deliverables and measurable outputs. Oversight mechanisms included technical validation, data and report reconciliation, and documentary confirmation before any payment was made,” it further noted.
SML maintained that it is a wholly Ghanaian-owned company with no political affiliations, and that its contracts with the GRA were structured under a “risk-and-reward” framework to enhance national revenue mobilisation through measurable results.
It also questioned the basis of the purported GH¢125 million “to be recovered” by the state, as the evidence on record clearly indicates otherwise.
“In fact, the state owes SML. Official statements on verified performance data and financial reconciliations are available directly from the GRA. SML’s revenue assurance audit systems were developed entirely at its own cost and risk, without any financial support from the state. To date, our systems remain the first-of-its-kind, fully integrated, multi-site digital audit and assurance system in the world,” it said.
It mentioned that the integrated audit system in the downstream petroleum operational chain has generated approximately GH¢20 billion in verified revenue for the state, as corroborated by the respective Bank of Ghana Petroleum Collection Holding Account.
“The system has led to a 92 percent increase in taxable volumes, while SML’s Transaction Audit Service has further contributed to a 33 percent rise in import clearance revenue collection across the monitored sectors,” it added.
SML reiterated its stand as a Ghanaian innovation story; a private enterprise that assumed operational risk under a performance-based framework and is compensated only after verified results.
The decision to terminate the SML contract follows the Ghana Revenue Authority’s (GRA) action in May 2024, when it complied with directives from former President Akufo-Addo to terminate the Transaction Audit and External Verification Service (AEVS) contract with Strategic Mobilisation Ghana Limited (SML).
The GRA also suspended the Upstream Petroleum and Minerals Revenue Audit components of the agreement, pending a comprehensive review of the contract details.
Additionally, the Authority announced plans to amend the Measurement Audit for the Downstream Petroleum Products contract by converting it to a fixed-fee structure.
GRA further indicated that it would conduct a detailed review of other provisions of the contract, including service delivery expectations, termination clauses, and intellectual property rights.
A Daily Guide Report