The National Communications Officer (NCO) of the opposition National Democratic Congress (NDC), has announced that a future NDC government, would not recognize the scandalous contract between Strategic Mobilization Limited (SML).
But not only that: the government, will also go after the cartel of thieves who acted together to set up the sweetheart deal that has led to the payment of over Gh¢1billion to SML.
“Distinguished members of the press, the NDC wishes to reiterate the pledge by our flag-bearer and leader, H.E. John Dramani Mahama, that the next NDC government will not recognize the illegal contracts between the Government of Ghana and SML, upon assumption of office in the year 2025.
“When elected into office, we shall launch credible and transparent investigations into this stinking SML scandal, with the aim of retrieving for the State, all illegal payments made to SML and ensuring the prosecution of all persons who are complicit in these illegal transactions.”
The promise, which was made at a press conference in Accra on the premise of an accountability platform called, “Moment of Truth” preceded an earlier four-point demand that, included a call on the Akufo-Addo government to terminate whatever remains of the scandalous contract and retrieve all payments made to SML.
The NDC, has also demanded that the government publish the full audit report on the SML contract by KPMG and prosecute all the persons involved within the ring of conspirators who cooked it.
It would be recalled that, sometime last week, the Jubilee House, had released a statement announcing that the government had received the KPMG report on the SML contract and that the president had directed that aspects of the contract should be cancelled.
They, include the upstream petroleum audit, minerals audit, and external price verification aspects of the contract.
However, the president directed that the contract for the downstream petroleum services must be reviewed.
“This minimises the occurrence of under-declarations. However, it is important to review the contract for downstream petroleum audit services, particularly the fee structure. Given the experience and proficiency of SML over the last four years of providing this service, the President has directed that the fee structure be changed from a variable to a fixed fee structure. Other provisions of the contract worth reviewing include clauses on intellectual property rights, termination, and service delivery expectations,” the president’s statement said.
However, according to the NDC, the entirety of the contract is tainted and should be scrapped.
“Let me state unequivocally, that the NDC is not in principle, against revenue assurance. What we vehemently against, are revenue assurance transactions that are awarded in contravention of the laws of Ghana and the payment of outrageous fees under such illegal transactions. What we are vehemently against, are illegal and duplicitous revenue assurance transactions that offer no value for money for the State.
“SML’s downstream petroleum audit agreement, just like their transaction audit and external price verification agreements, has been established beyond every reasonable doubt to be illegal, duplicitous and totally useless.
“The claim by government that the State has benefited from the illegal downstream petroleum audit services of SML simply because of an increase in petroleum volumes by 1.7 billion litres and an increase in tax revenue to the State to the tune of GH₵2.45 billion, is ridiculous to say the least,” Sammy Gyamfi said.
Tracing the background of SML, he pointed out that the company is an offshoot of a timber company, hurriedly put together for the SML contract, following the coming into office of the Akufo-Addo government in 2017 and that the company, is also the conjuration of cronies within the Akufo-Addo government.
“SML was incorporated on 14th February, 2017. This was barely thirty-seven (37) days after the NPP assumed the reins of power on 7th January, 2017. The stated capital of the company is GH¢10,000. The paid-up shares of the company is GH¢10,000. The shareholder and Chief Executive Officer of the company is one Mr Evans Adusei, who owns and runs Evans Timbers Limited.
“Barely four (4) months after the incorporation of SML, the corrupt Akufo-Addo/Bawumia NPP government, acting through the Ghana Revenue Authority, sought to engage SML to provide transaction audit services at the port through sole sourcing. Between June 2017 and September 2017, the GRA made three (3) requests to the Public Procurement Authority (PPA) for approval to engage SML through sole sourcing. All these three (3) requests were refused by the PPA,” Sammy Gyamfi said.
According to the party, all this happened at a time that SML, an offshoot of a Timber company, had no prior experience in revenue assurance or transaction auditing. It goes without saying, that GRA’s requests for approval to engage SML through sole sourcing were refused by the PPA because the requests did not meet the mandatory requirements of section 40 of the Public Procurement Act, 2003 (ACT 663).
“In furtherance of their questionable and unholy determination to engage SML through sole sourcing, the GRA with the tacit support of the Ken Ofori Atta-led Finance Ministry, engaged SML through the back door as a sub-contractor of West Blue, which was already providing transaction audit services for the State at the port.
“SML was made to take over the transaction audit services of West Blue in December 2018 when the latter was kicked out. Subsequently, the GRA added external price verification to the contracted services of SML. Additionally, the GRA also a downstream petroleum audit agreement with SML. Till date, the GRA remains the only customer of SML.”
The NDC pointed out that the Managing Director of SML, Christian Tetteh Sottie, was the Technical Advisor to the Commissioner-General of the GRA, who left his job at the GRA to manage SML, as soon as the company commenced the implementation of its contract with the GRA in the year 2020.
“It is instructive to note, that all these (2018-2019) transactions between the Akufo-Addo/Bawumia NPP government, and SML were done in violation of the Public Procurement law, the GRA Act and the Public Financial Management Act (PFMA). This is because the agreements did not go through the mandatorily required procurement process. Neither were they approved by the board of the GRA, as required by the GRA Act. Additionally, the agreements were not approved by Parliament as required by section 33 of the PFMA. The agreements are therefore illegal, null, void and of no legal effect whatsoever.
“Sadly, the irredeemably corrupt Akufo-Addo/Bawumia NPP government has paid a staggering GH¢1,061,054,778 to SML under these illegal contracts from the taxes of suffering Ghanaians. This fact is contained in sections of the KPMG investigative report published by the Presidency,” the NDC said.
Source: whatsupnewsghana.com