Parliament has, in a decisive move, issued a directive to the Ministry of Finance, ordering the suspension of all payments to Strategic Mobilisation Ghana Ltd (SML) from January 1, 2024.
The order comes in the wake of revelations that contracts between the Ghana Revenue Authority (GRA) and SML, responsible for revenue collection services, were multi-year commitments requiring parliamentary approval.
The decision was reached following the adoption of the Finance Committee’s Report on the annual estimates of other government obligations for the 2024 financial year.
The Committee flagged the contracts with SML within the GRA’s Goods and Services allocation, emphasizing the necessity for parliamentary approval under Section 33 of the Public Financial Management Act, 2016.
The Committee not only recommended notifying GRA about this statutory requirement but also proposed a thorough investigation into these projects, in line with Article 103 of the 1992 Constitution. The Finance Committee will subsequently submit its report to Parliament for consideration.
In light of the pending investigation, the Committee further recommended the suspension of all payments to SML starting from the next fiscal year until Parliament evaluates the findings of the probe.
Speaking on the decision in an interview on Friday, December 22, Minority Leader Cassiel Ato Forson underscored the urgency of a comprehensive investigation into the SML contract.
He insisted that the contract, signed in 2020, was a multi-year commitment necessitating parliamentary approval under Section 33 of the Public Financial Management Act (PFMA). He argued that the contract lacked validity and must be presented to Parliament for consideration and approval.
Expressing concern over the financial implications, Ato Forson stated that SML had been receiving GH¢24 million monthly since 2018, and an additional $100 million annually since 2022.
He accused the government of siphoning funds during a significant economic crisis.
The Minority leader applauded investigative journalist Manasseh Azure Awuni for exposing the SML contract, stating, “Ordinary Ghanaians cared more than the elected representatives.”
He affirmed the Minority’s commitment to transparency and pledged to uncover the truth behind the SML contract.
John Jinapor, Ranking Member of the Energy Committee and a member of the Finance Committee, reiterated the Minority leader’s concerns over the SML contract and called for the immediate suspension of payments.
Jinapor emphasized the National Petroleum Authority’s (NPA) capacity to ensure revenue assurance without the need for external measures.
He stated, “From the energy point of view, we have had several meetings with the NPA, and I can confirm to you that the NPA has the technical know-how and the ability to ensure that there’s revenue assurance.”
He disclosed the existence of the ER DMS (Electronic Receipt Data Management System), which provides real-time data and is integrated with customer platforms, automatic tank gauging systems, and a bulk route vehicle tracking system.
Jinapor revealed that during discussions with the NPA, it was confirmed that there was no necessity for additional revenue assurance measures.
He assured the minority leader that the committee would prioritize the nation’s interest and conduct a diligent investigation.
“When you look at the contract from the oil sector alone, Ghana produces about 16 million barrels of oil annually. If this company is to take $0.75 per barrel, it means that in one year, they are getting about US$45 million from the oil sector alone,” Jinapor explained.
He pointed to potential earnings from the minerals sector, estimating a yearly revenue of $100 million, in addition to the monthly payments totaling nearly GH¢280 million.
“With immediate effect – and that is the operative word – all such payments should be suspended and halted until the Finance Committee is done with this investigation,” he stated and predicted a ‘showdown’ at the Finance Committee.
