SML contract scandal: GRA has ignored Akufo-Addo’s order to suspend operation – Bright Simons

Bright Simons, a vice president of IMANI Africa, has indicated that the Ghana Revenue Authority (GRA) has defied the order of President Nana Addo Dankwa Akufo-Addo to stop the operationalisation of its contract with Strategic Mobilization Ghana Ltd (SML).

President Akufo-Addo tasked KPMG to audit the transaction between the GRA and SML where the latter was expected to provide revenue assurance services in the downstream petroleum sector, the upstream petroleum production and minerals and metals resources value chain.

The president, in a statement issued on January 2, 2024, directed the Ministry of Finance and the GRA to suspend the performance of the contract, pending the submission of the audit report, including any payments presently envisaged under its terms.

Bright Simons has now alleged that the GRA has not suspended the performance of the contract as directed by the president.

Simons, in a post on X on Monday, January 22, 2024, shared a letter from the GRA to the presidency, where the authority explained why the performance of the contract cannot be stopped.

It is not clear whether Akufo-Addo accepted the explanation but the IMANI vice president has said that the order for the performance of the contract to be stopped has been ignored by GRA.

He added that the fact that the president's order has been ignored shows the power of SML.

“3 weeks ago, Ghana's Prez told KPMG to spend 2 weeks looking into the SML scandal. He also suspended execution of the SML project. GRA wrote to the Prez last week that SML says suspension no good. This means the Prez's directive was just ignored. What dey go on?

“SML is so powerful that they can defy the Prez. Command a billion dollars for no value added. Render all state agencies mute. Get KPMG into this reputational quicksand. Some timber merchants dey!” he wrote.

About the SML scandal:

An investigation piece by an Accra-based media house, The Fouth Estate, titled, 'The GH¢ 3 Billion Lie', accused the Ministry of Finance of awarding a $100 million contract to SML to monitor Upstream Petroleum Production and to Audit the value chain of Minerals and Metals Resources.

Both the GRA and SML came out to justify the agreements that bind the two entities.

SML has stated that its upstream operations have not commenced, and therefore, no revenue has been generated. The company pointed out that the $100 million per year payment allegation is entirely fictional.

Read the post below:

2/ F. Here is a background on the SML scandal:https://t.co/ZwnXaLnzxE

G. SML is so powerful that they can defy the Prez. H. Command a billion dollars for no value add. I. Render all state agencies mute. J. Get KPMG into this reputational quicksand. K. Some timber merchants dey!

— Bright Simons (@BBSimons) January 22, 2024