Oil cartels accused of orchestrating anti-SML campaign

A fierce battle over revenue assurance in the petroleum sector has taken a new turn, with allegations that entrenched industry players—who benefited from tax leakages—are behind a sustained campaign against Strategic Mobilization Ghana Limited (SML).

SML, which provides real-time monitoring and auditing services for the Ghana Revenue Authority (GRA), has been credited with addressing revenue losses in the petroleum sector.

However, the company has faced sustained opposition, led, in part, by investigative journalist, Manasseh Azure and civil society groups, over claims of procurement irregularities and contractual disputes. While critics have called for greater transparency, industry insiders suggest the campaign against SML is being driven by vested interests seeking to dismantle the systems that have curbed illicit activities.

Before SML’s engagement, Ghana’s petroleum sector faced massive revenue leakages. Data from the National Petroleum Authority (NPA) and Bank of Ghana reveal that in 2019 alone, 2.36 billion litres of petroleum products went untaxed, resulting in an estimated GH¢3.4 billion in lost revenue, or approximately GH¢283 million per month.

SML’s real-time monitoring system was introduced to stem these losses, a move that has since disrupted established practices in the industry.

According to Professor Isaac Boadi, Dean, Faculty of Accounting and Finance at UPSA, this is evident as the company’s impact has been endorsed by independent reviews.

“The Parliamentary Energy Committee noted that SML’s systems disrupted a ‘well-entrenched network’ of illicit actors,” he stated in an opinion piece titled: ‘Unpacking the alleged oil cartel campaign against SML in Ghana’.

Despite this, opposition to SML has remained intense. The criticisms, which initially focused on procurement processes, later shifted to contract duration and pricing structures, raising questions about the motivations behind the attacks.

Institutional backing

A key turning point in the debate came with the release of a 306-page KPMG audit report commissioned by President Akufo-Addo in 2024. The audit found no evidence of financial misconduct by SML and affirmed the company’s role in enhancing revenue collection.

The report aligned with public statements by the GRA, which credited SML’s systems with improving transparency and reducing revenue leakages. “The GRA publicly praised SML’s role in reducing petroleum sector leakages, stating its systems have ‘significantly improved revenue assurance,” Prof. Boadi noted.

In Parliament, the Energy Committee, chaired by Mr Atta Akyea, similarly backed SML’s operations, commending its “practical solutions” in addressing longstanding inefficiencies. Yet, these endorsements have done little to quell opposition.

Analysts, including Prof. Boadi, suggest that the persistent attacks on SML are part of a broader effort to roll back oversight measures that have disrupted revenue streams for powerful industry players.

Media narratives and legal battles

Manasseh Azure’s investigative reports, amplified by The Fourth Estate, have been central to the anti-SML campaign. However, questions have been raised about his approach, particularly the reliance on media narratives rather than legal action.

“If concrete evidence exists, why has it not been presented in court?” Prof. Boadi asked, while referencing past legal challenges against Mr. Azure, including a retraction and apology to businessman, Ibrahim Mahama over false claims.

SML, in response to the allegations, has filed a GH¢21 million defamation lawsuit against Mr. Azure, framing the media reports as part of a coordinated effort to discredit its operations.

The company has, however, maintained that its work has been independently verified and that attacks on its credibility serve the interests of those who profited from the previous system of unchecked tax leakages.

Prof. Boadi believes the controversy over SML is now seen as a critical test of Ghana’s commitment to revenue assurance and fiscal discipline. He argued that while procurement concerns must be addressed transparently, the broader implications of dismantling a system that has plugged billions in tax leakages cannot be ignored.

“The government faces a critical test: whether to uphold a system that recovers billions in lost revenue or yield to pressure from actors threatened by accountability,” Prof. Boadi remarked.

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