…Without governing board & parliamentary approval
The Ghana Revenue Authority (GRA) led by Julie Essiam, its Commissioner-General, has shockingly rekindled controversy by reinstating the Strategic Mobilization Ghana Ltd (SML) transaction in the absence of a governing board, as well as parliamentary approval.
The last one headed by Dr Anthony Oteng Gyasi, was dissolved, but a new one has not been put in place and sworn into office by the supervising minister, the Minister of Finance, Dr Mohammed Amin Adam, begging the question, why the new GRA management hurriedly reinstated the SML deal.
The move comes, despite widespread criticism and allegations of corruption surrounding a deal widely held as a retirement benefit for the President and his family.
It also comes amid reports that, there were efforts to manipulate the KPMG report’s language to avoid implicating some people.
Critics, including the media and civil society organizations (SCOs), have argued that SML plays an unnecessary role in the downstream oil sector.
According to Asaaseradio.com, it cited a letter titled “Compliance with Presidential Directives on Recommendations in KPMG Report on the Transactions Between GRA and SML,” dated Friday, 3 May 2024, in which management said, the Upstream Petroleum and Minerals Revenue Audit portions of the contract, has also been suspended pending further review of the contract details.
Media outlets, including The Herald, have pointed out that, the deal is a multi-billion cedi scheme created to benefit the political class and the president’s family in particular.
Last week, reports surfaced suggesting that the president’s family attempted to influence the KPMG report on the deal, potentially distorting its findings.
Allegedly, there were efforts to manipulate the report’s language to avoid implicating the family.
Further complicating the issue are suspicions that the newly-appointed GRA management is motivated by self-interest in pushing through the SML transaction before the end of President Nana Addo’s tenure in December.
A curious aspect of the situation is the apparent disregard for the president’s directive seeking parliamentary approval to address the legal irregularities associated with the SML deal.
These irregularities, include breaches of the Public Financial Management Act (PFM Act) and the Constitution.
Despite this directive, the GRA, has reinstated the transaction with only minor adjustments, offering no details on the revised costs or how the entire deal was reassessed as instructed.
Public demands for the release of the KPMG report remain unmet. The presidency is reportedly in negotiations with the auditing firm to suppress potentially damaging elements of the report.
A source within the presidency suggests that the key contentious issues involve the investment cost of SML and the overall redundancy of the transaction in the oil industry.
The Ministry of Finance, the originator of the SML transaction, has remained conspicuously silent on the matter.
Despite the president’s directive for a joint decision-making process with the GRA, the Ministry appears content to let the newly appointed GRA boss take the lead on implementing the revised deal.
Intelligence suggests that the Finance Minister may be seeking to avoid culpability by deflecting responsibility to the GRA.
This newspaper’s investigation reveals the involvement of Ernest D. Akore, an officer at the Finance Ministry, who allegedly takes orders from the then Finance Minister, Ken Ofori-Atta, to assign additional work to SML, owned by Evans Edusei and Esther Edusei.
Notably, Akore, had previously worked under Mr Ofori-Atta at Databank Brokerage Ltd, serving as Executive Director.
He transitioned to the Finance Ministry, where he is sometimes referred to as a Technical Advisor to the Minister for Finance.
Akore, identified as “Chef De Cabinet” in the ministry, signed a letter dated June 22, 2023, titled “Expansion of the scope of work by Messrs Strategic Mobilization Limited” and sent it to the then Commissioner General of the GRA, Dr Ammishaddai Owusu-Amoah.
In the letter, Akore stated that the Minister for Finance, wanted to extend SML’s Revenue Assurance work to include monitoring upstream oil drilling and gold mining activities.
A “chef de cabinet” is a high-ranking civil servant or official acting as an aide or private secretary to a government figure. It is normally used in the French public service.
His letter, accompanied by a 54-page revised contract, indicated that the Legal Department of the Ministry of Finance had reviewed it.
However, it requested the GRA’s Legal Department to review and provide input before signing. Notably, the document lacked the signature of Deputy Minister, Abena Osei-Asare, who was in charge of Revenue Mobilization.
The GRA terminated the transaction Audit and External Verification Service Contract (AEVS) with SML on the back of a directive given by President Akufo-Addo as part of recommendations by the audit firm, KPMG.
However, Asaaseradio.com reports thatGRA decided to amend the measurement Audit for the Downstream Petroleum Products Contract by revising the fee structure to a fixed fee structure. The Authority also says it will thoroughly review other provisions such as service delivery expectations, termination, and intellectual property rights.
“This is about the presidential directives dated 18 April 2024 on the recommendations of KPMG concerning the Contract for Consolidation of Revenue Assurance Services between the Government of Ghana acting per the Ministry of Finance, Ghana Revenue Authority (GRA) and Strategic Mobilisation Ghana Limited (SML).
“Following the directives of the President, GRA has undertaken a thorough review of the Consolidation of Services (Transaction Audit and External Verification Services) contract dated 3 October 2019, the Measurement Audit for Downstream Petroleum Products Contract dated 3 October 2019, and the Contract for Consolidation of Revenue Assurance Services (Upstream and Minerals Audit) contract dated 25 October 2023.
“Based on the review, the following actions are to be taken: First, The Transaction Audit and External Verification Services Contract will be terminated. Secondly, the Measurement Audit for Downstream Petroleum Products Contract will be amended.
“Specifically, the fee structure will be revised to a fixed fee structure. In addition, other provisions such as service delivery expectations, termination, and intellectual property rights will be subjected to a thorough review.
“Thirdly, the Upstream Petroleum and Minerals Revenue Audit portions of the Contract for Consolidation of Revenue Assurance Services cannot take effect until a comprehensive technical needs assessment, value-for-money assessment, and relevant stakeholder consultations have been achieved,” the GRA letter signed by its Commissioner General, Ms Julie Essiam, and addressed to the Managing Director of Strategic Mobilization Ghana Limited (SML) read.
Meanwhile, copies of the letter have been sent to the Vice President, Dr Mahamudu Bawumia, the Chief of Staff, Akosua Frema Osei Opare, Secretary to the President, Nana Bediatuo Asante, the Finance Minister, Mohammed Amin, the Director of Legal at the Ministry of Finance and the Deputy Commissioner in Charge of Legal Affairs at the GRA.
