Mahama terminates controversial SML revenue assurance contracts with immediate effect.
Mahama terminates controversial SML revenue assurance contracts with immediate effect.
President John Dramani Mahama has ordered the immediate termination of all existing contracts with Strategic Mobilisation Ghana Limited (SML), according to 3News’ reliable sources at the Presidency.
The directive comes following the conclusion of a high-profile investigation into the contracts conducted by the Office of the Special Prosecutor (OSP).
The instruction from the Presidency, which marks an end to one of the most contentious government contracts in recent memory, was triggered by the findings of the OSP’s probe.
The directive, which was issued as a letter from Dr. Callistus Mahama, Executive Secretary to the President, to the Minister of Finance, explicitly states:
“Following the conclusion of the investigation conducted by the Office of the Special Prosecutor (OSP) into the contracts awarded to Strategic Mobilisation Ghana Limited (SML), I have been directed by His Excellency, the President of the Republic, to request that you take immediate steps to terminate all existing SML-related contracts forthwith.”
BACKGROUND TO THE CONTROVERSIAL DEAL
The SML contracts, initially signed with the Ghana Revenue Authority (GRA) and the Ministry of Finance, were intended to provide revenue assurance services, first in the downstream petroleum sector and later expanded to cover upstream petroleum and the mining value chain.
The deal attracted fierce public scrutiny and outrage after investigative reports alleged the company had inflated claims of revenue savings and questioned the legitimacy of its expertise. The contract was also criticized for being single-sourced, and some reports suggested the long-term value could reach over $100 million annually.
The controversy deepened with the OSP’s intervention. The Special Prosecutor’s investigation concluded with a scathing assessment, disputing the justifications for the deal and its value for money.
The OSP’s findings labelled the GRA-SML deal a “masterful and mischievously crafted scheme” and stated that there was “no genuine need” for the contract to perform the obligations SML was purportedly contracted for.
Furthermore, the OSP’s probe uncovered allegations that over GH¢1.4 billion had been paid to SML without adequate monitoring or evaluation. The OSP has also publicly implicated the former Minister of Finance, Ken Ofori-Atta, in connection with the deal.
