The Special Prosecutor, Kissi Agyebeng, has delivered a damning indictment on the controversial revenue assurance contract between the Ghana Revenue Authority (GRA) and SML (Strategic Mobilisation Ghana Limited), concluding that there was “no genuine need” for the contract.
In a highly detailed press briefing following a comprehensive investigation, the OSP announced critical findings that point to systemic breaches of public financial regulations and an apparent abuse of official power, resulting in financial loss.
Contract Secured Through “Self-Serving Official Patronage”
Mr. Agyebeng’s investigation found that the contract, which aimed to provide revenue assurance services in the petroleum, mining, and liquid bulk distribution (LBD) sectors, lacked a legitimate operational requirement.
“There was no genuine need for contracting SML for the obligations it’s purported to perform,” the Special Prosecutor declared.
He asserted that the contracts were not awarded based on merit or need but were “secured for SML through self-serving official patronage, sponsorship [and] promotion based on false and unverified claims.”
Egregious Statutory Breaches and Impunity
The OSP’s findings painted a picture of widespread non-compliance with Ghana’s public financial laws. The investigation revealed that the SML contracts were “attended by egregious statutory breaches”, primarily because “mandatory prior approvals were wantonly disregarded by relevant officials who acted with increased and emboldened impunity.”
Key regulations often disregarded in major government contracts, such as those related to the Public Financial Management Act, 2016 (Act 921) and the Public Procurement Act, 2003 (Act 663), were allegedly bypassed. The failure to obtain mandatory prior approvals for such a high-value contract represents a serious contravention of the established legal framework designed to safeguard state assets.
Payments Detached from Performance: Financial Loss Cited
Perhaps the most alarming finding revolved around the mechanism for payments made to SML. The OSP’s probe uncovered a significant failure in the public financial management system responsible for oversight and accountability.
The Special Prosecutor revealed that “there was no established financial management system of monitoring and verification to ensure that the Republic was obtaining the value for the money it was paying to SML.”
Crucially, the investigation concluded that the payments to SML were set on an “automatic mode, detached from actual performance”, a scenario which, according to the OSP, directly resulted in “causing financial loss to the public”.
This suggests a system where public funds were disbursed based on a calendar schedule rather than verified results or deliverables achieved by SML, indicating a severe failure in contract management and oversight within the GRA and the Ministry of Finance.
The OSP’s full report is expected to detail the exact monetary figures involved, but the findings place the burden of responsibility squarely on the officials who initiated, promoted, and approved the contracts and the subsequent payment mechanisms without adequate due diligence or regulatory compliance.
The Special Prosecutor’s office is expected to proceed with prosecution against all culpable officials.
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