The Ghana Revenue Authority (GRA) has confirmed it has signed a consolidated contract with Strategic Mobilization Ghana Limited (SML) to monitor upstream petroleum production and to audit the value chain of minerals and metal resources.
The contract, according to the GRA, is for a term of five years and not 10 years as alleged by a documentary by the Fourth Estate.
The GRA in a statement noted that prior to engagement of SML, it operated a manual system for the measurement of fuel depots. The use of dipsticks for measurement was archaic, the GRA said, and posed a risk to officers who climbed a ladder to measure the fuel in the tankers. It was inefficient and prone to revenue leakages.
It added that currently, however, oil deposited by the Bulk-oil distribution companies in the depots is measured by SML with the aid of sensors installed on the depots (red flow metres). During offloading from the depots, SML again measures all the various liftings of the Oil Marketing Companies (OMCs)
Responding directly to the Fourth Estate, the GRA restated that the consolidated contract which is a risk-reward contract seeks to bring efficiency in revenue assurance services provided to the Authority.
It clarified that SML per the contract is required to provide resources for the execution of the contract. By implication, if there is no value addition, SML is not paid. In short, the principle of risk and reward is the fulcrum of the contract, it added.
The statement emphasised that the contract is for five years and is performance-based and approved under Section 40 of the Public Procurement Act, Act 663, 2003.
The Board and management affirmed that all legal and proper processes were followed in procuring the services of SML.
It said SML solely financed the capital expenditures and cutting-edge technology that is employed in the monitoring and auditing services provided to GRA in the downstream petroleum sector.
Meanwhile, in the investigative report by the Fourth Estate published on December 18, it revealed that claims by SML Company of saving Ghana billions of cedis in the downstream petroleum sector were false. Instead, the company allegedly received government payments totaling about GH₵24 million monthly for services not rendered. The leaked documents indicated that SML was granted a new 10-year contract worth $1 billion.
The exposé has sparked public outrage, with calls for the immediate termination of the controversial contract. The minority caucus, led by Ranking on Mines and Energy, John Jinapor, held a news conference urging the government to suspend the deal pending a thorough parliamentary investigation. The Fourth Estate has petitioned the Office of the Special Prosecutor to conduct an inquiry into the matter.