OSP to recover GH?125m from SML

• GH?1.4bn paid, GH?125m to be recovered
• former finance minister, 4 GRA commissioners face prosecution

By Ernest Bako WUBONTO

The Office of the Special Prosecutor (OSP) has announced plans to recover GH?125million from SML following the findings of a probe.

The announcement follows completion of an investigation into the contract between the Ministry of Finance, Ghana Revenue Authority (GRA) and Strategic Mobilisation Ghana Limited (SML).

The alleged unlawful contract between SML and the state spans from 2018 to 2024.

The investigation highlighted financial losses – detailing that between July 2018 and December 2024, SML received a total fee of GH?1,436,249,829 from various contracts, comprising GH?506,728,334 for transaction audit and external price verification services and GH?929,521,494 for measurement audits of downstream petroleum products.

The OSP noted that payments for transaction audit and external price verification were effected automatically – without reference to the submission of reports for verification or even invoices from SML for actual work done, despite minimal or non-existent service delivery.

Furthermore, GRA failed to deduct statutory taxes totalling GH?13,380,000 from SML’s payments under the downstream petroleum audit – in addition to outstanding penalties and pay-as-you-earn (PAYE) tax liabilities.

The investigation, prompted by a complaint from journalists at The Fourth Estate, concluded that SML’s involvement in public revenue assurance was based on largely undeserved automatic payments detached from performance.

Special Prosecutor (SP) Kissi Agyebeng affirmed the OSP’s resolute stance against corruption, unperturbed by public distractions as the office moves to prosecute key public officials and claw back significant financial losses for the state.

He announced that his office will seek to recover a total amount of GH?125million from SML. This recovery is a disgorgement of unjust enrichment from overpayment, calculated on a ‘quantum meruit’ basis to ensure the company returns benefits it obtained unfairly at the state’s expense.

The calculation acknowledges SML’s investments under the unlawful contracts, but primarily targets the undeserved payments stemming from a system that fostered a free payment system on one hand and a conflictual system of padding-up figures to attract artificially higher fees on the other hand.

Ken Ofori-Atta and 5 others

The OSP is also preparing to charge several high-profile individuals with various corruption and corruption-related offences before the expiration of November 2025.

Those facing charges included former Minister of Finance Kenneth Nana Yaw Ofori-Atta and his former Chef de Cabinet, Ernest Akore; two former Commissioners-General of the Ghana Revenue Authority, Emmanuel Kofi Nti and Rev. Ammishaddai Owusu-Amoah; and a former Commissioner of the Customs Division of GRA and General Manager of SML, Isaac Crentsil. Also, a former Commissioner of the Customs Division of GRA and Member of Parliament for Jaman South constituency, Kwadwo Damoah.

The investigation concluded that the arrangements were secured through self-serving official patronage, sponsorship and promotion based on false and unverified claims.

KPMG Report Disparity

The OSP’s report heavily criticised a parallel audit conducted by KPMG, stating that the OSP “found itself unable to agree with some major conclusions of the KPMG”, particularly on accountability and value-for-money.

The OSP contended that KPMG’s report was placatory in material respects and ignored that SML’s services added no real value, operating redundantly alongside established systems like ICUMS.

The investigation revealed that following the earlier KPMG audit, the MoF, GRA and SML altered their payment structure to a fixed monthly fee. However, the OSP initiatives have halted these payments since December 2024.

The OSP recommended that termination of SML’s engagement in November 2024 should stand, citing the company’s obvious non-performance.

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