GRA has emphasised that it has not approved any such expansion and that SML remains suspended from those operations.

In a statement, the Authority described the reports published in some online portals and print outlets, including Business and Financial Times and Graphic Online, as inaccurate.

“GRA wishes to clarify that the Authority’s suspension of SML’s services in the upstream petroleum and mineral sectors pending further review issued in April 2024, remains in force,” the statement read.

GRA stated that it has not instructed SML to activate nor resume operations under the 2023 Consolidation of Revenue Assurance Services Contract covering those sectors.

The GRA further reassured industry stakeholders and the general public of its commitment to managing the country’s revenue systems transparently.

“The Authority wishes to assure stakeholders in the aforementioned sectors and the general public of its unwavering commitment to protect the nation’s revenue with integrity and transparency,” the statement concluded.

ALSO READ:

• CSOs call on Mahama to terminate SML, Agyapa Royalties deals

• Next NDC govt will investigate SML, PDS other scandals under Akufo-Addo – Ablakwa

This was contained in the full KPMG audit report on the contract released by President Akufo-Addo on Wednesday.

The report also stated that SML performed partially under the contracts under review.

The six contracts include Transaction Audit Services (effective from June 1, 2018), Contract Extension (effective from January 1, 2019), External Price Verification Services (effective from April 1, 2019) and Consolidation Services Agreement (Transaction Audit & External Verification Services) (effective from October 3, 2019).

The rest are; Measurement Audit of Downstream Petroleum Products (effective from October 3, 2019), and Addendum to Measurement for Downstream Petroleum Products Agreement (effective from July 29, 2020).

GRA’s contract with SML covered the monitoring and auditing of revenue within the petroleum downstream sector, and a subsequent contract for similar activities to be undertaken in the upstream petroleum sector.

The President after receiving the report from KPMG ordered the cancellation of the contract with SML for the upstream sector and a renegotiation of the contracts for the downstream sector.

The report added that, SML was incorporated on February 14, 2017, as SMEL.

GRA, however, between June 16, 2017, and the same September, made three attempts to contract SMEL under a single-source contract but was rejected by PPA.

The prominent voice in the discourse surrounding the GRA-SML contract says the infractions uncovered by the investigation, as indicated by President Akufo-Addo’s acknowledgment of the irregularities in awarding the contracts to SML, including payments exceeding GHȼ1 billion, raises the inevitable need for further scrutiny of the questionable arrangements.

He raised the issues in his first public comments on the communication from the presidency.

While commending President Akufo-Addo for issuing a ‘white paper’ on the work of KPMG and acknowledging infractions thereon, he says it is not enough if the doors to accountability are not opened. Of particular concern to him was the attempted extension of the contract to encompass the mining and petroleum drilling sectors, with an additional $100 million annually.

“It is helpful that the President of Ghana accepts that infractions occurred in the award of the SML contracts that have so far netted the company more than 1 BILLION GHS. It was inevitable that the attempt to extend this same troubling arrangement to the mining & petroleum drilling sectors for an additional $100 million a year would not stand scrutiny, so the decision to halt that process was expected.”

Bright Simons asserts that such an expansion would not withstand scrutiny, and the decision to halt the process was a foregone conclusion.

Moreover, Bright Simons raises alarm over the duplication of services in the pre-shipment inspection work undertaken by SML, originally delegated from West Blue, and contends that the President’s acknowledgment of this redundancy is a step in the right direction.

However, amidst these acknowledgments, Simons says he is disappointed with certain aspects of the President’s response and demands full transparency, calling for the release of the complete KPMG report to the public.

Additionally, he disputes the claim that any increase in petroleum consumption in Ghana can be attributed to SML’s efforts.

“We insist on seeing the full KPMG report. We dispute their apparent claim that any increase in petroleum consumption in Ghana should be attributed to SML. We demand an open forum to show that the weight of expert opinion in Ghana is against any such flawed reasoning. Multiple petroleum economists are on standby to prove that no gains in consumption volume can be attributed to SML’s work.”

Bright Simons challenged the reasoning behind SML’s payment structure, arguing that a fixed fee, rather than a percentage of taxes collected by the State, should be implemented.

He argues that a thorough needs assessment must precede any further disbursement of funds to SML or any other company.

He has consequently called for an open, transparent, and meritocratic process to evaluate the value for money and the necessity of SML’s services.

According to Bright Simons, no more of Ghana’s money should be allocated until such an assessment is completed, and offers the support of civil society activists and specialists in the energy sector to ensure a rigorous evaluation.

ALSO READ:

• CSOs challenge KPMG’s claim linking rise in petroleum consumption to SML

• Let’s not stampede presidency to release KPMG report on SML-GRA deal – Martin Kpebu

Below is the statement from the Presidency: