Five NGOs sue government over GH¢1 billion paid to SML

Five prominent Non-Governmental Organisations (NGOs), including the Centre for Democratic Development (CDD-Ghana) and the Media Foundation for West Africa (MFWA), have initiated legal action to recover over GH¢1 billion allegedly misappropriated in payments made to Strategic Mobilisation Limited (SML).

The other NGOs involved in this lawsuit are the Africa Centre for Energy Policy (ACEP), the Ghana Anti-Corruption Coalition (GACC), and the Human Rights and Governance Centre.

This move comes in the wake of a comprehensive audit conducted by international audit firm KPMG, which was commissioned earlier this year by President Nana Addo Dankwa Akufo-Addo.

The audit was initiated to scrutinize the contractual dealings between the Ghana Revenue Authority (GRA) and SML, particularly focusing on the processes and approvals associated with the agreement.

The audited contract between the GRA and SML was initially established with the aim of enhancing revenue assurance across critical sectors of Ghana's economy, including the downstream petroleum sector, upstream petroleum production, and the minerals and metals resources value chain. The intention was to streamline revenue collection and ensure transparency and efficiency in these lucrative sectors.

However, the findings of the KPMG audit revealed significant procedural lapses and regulatory breaches in the awarding of the contract. Notably, the GRA failed to secure mandatory approvals from the Public Procurement Authority (PPA) and did not seek the necessary parliamentary oversight before finalizing the agreement with SML.

These omissions constitute clear violations of Ghana's public procurement laws and regulations, which are designed to promote accountability, transparency, and fairness in the use of public funds.

In response to these revelations, the coalition of NGOs has filed a lawsuit against the government, seeking to hold accountable those responsible for the breaches and to recover the substantial funds disbursed under the unlawful contract.

The NGOs argue that the disregard for due process and legal requirements not only undermines the rule of law but also results in significant financial losses to the state, which could have been allocated to critical development projects and public services.

The government and the GRA are yet to issue official statements in response to the lawsuit.