The Ghana Revenue Authority (GRA) has refuted assertions made by the Fourth Estate in a publication indicating that claims made by Strategic Mobilisation Ghana Limited (SML), which started revenue assurance services to the government of Ghana in 2020 contained a lot of falsities.
According to the Fourth Estate, the company claimed in February 2023 that it had saved Ghana over GHC3 billion in revenue that would have been lost to the state but for its services in the contract it signed with the Ministry of Finance and the Ghana Revenue Authority (GRA).
However, its investigation found this claim to be completely false. It went on to say that the Managing Director of SML, Christian Tetteh Sottie, claimed he did not know about the figure when The Fourth Estate confronted him with counter evidence. He said the media, including the state-owned Daily Graphic, had taken a presentation SML made to the GRA board out of context and reported the wrong information. He said SML had called the journalists to draw their attention to the supposed error which still exists on the company’s website.
The contract, per the Fourth Estate’s investigations, further mandates the state to pay SML Ghana 0.75 per cent of the total amount of gold that is produced and monitored in Ghana.
Using the 2022 production figures to estimate SML’s earnings, the company’s 0.75% share of 3.7 million ounces at a global price of US$1,800 per ounce (as contained in the Finance Minister’s 2024 budget statement) will amount to US$50 million from the gold sector alone, according to the Fourth Estate.
“The Contract spells out what should be paid to SML under the gold and oil upstream petroleum sectors. Together with the downstream sector, the company will be paid over $100 million a year.
“Together with the downstream and upstream petroleum sectors, SML Ghana will be paid more than US$100 million by the government of Ghana through the “revenue assurance” contracts,” portions of the Fourth Estates investigations disclosed.
But in a statement issued by the GRA Wednesday, December 20, 2023, it says the contract between SML and GRA operates on the principle of risk and reward and there is no way the company could be paid for no work done as being indicated by the Fourth Estate.
“GRA restate that the consolidated contract which is a risk-reward contract seeks to bring efficiency in Revenue Assurance Services provided to GRA. SML per the contract is required to provide resources for the execution of the contract. By implication, if there is no value addition, SML is not paid.”
“In short, the principle of risk and reward is the fulcrum of the contract,” it said in the statement adding that “the Contract is for five (5) years and is performance-based and approved under Section 40 of the Public Procurement Act, Act 663, 2003. The Board and Management affirm that all legal and proper processes were followed in procuring the services of SML.”
Find below the full statement from the GRA.
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