NDC urges government to terminate illegal contracts with SML

“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,” Sammy Gyamfi explained.

PRESS STATEMENT READ BY THE NATIONAL COMMUNICATIONS OFFICER OF THE NATIONAL DEMOCRATIC CONGRESS AT A MOMENT OF TRUTH PRESS CONFERENCE HELD ON MONDAY, 29TH APRIL, 2024 AT THE NDC HEADQUARTERS.

Good afternoon distinguished ladies and gentlemen of the media. We thank you for honouring our invitation to this important Moment of Truth press conference.

Today, we shall be focusing on the raging matters in the media, arising out of the stinking SML scandal which has outraged the entire nation.

The NDC has noted with disgust, attempts by the scandal-riddled Akufo-Addo/Bawumia NPP government to cover-up serious acts of corruption surrounding the dealings between a privately-owned Ghanaian company, Strategic Mobilization Ghana Limited (SML) on one hand and the Ghana Revenue Authority (GRA) on the other hand.

These acts of corruption have arisen out of the award of certain illegal contracts by the ruling NPP government, acting through the Ghana Revenue Authority (GRA) and the Ministry of Finance to SML.

Thanks to a patriotic investigative work carried out by one of your own in the media, an illustrious son of Ghana, Manasseh Azure Awuni and his colleagues at the Fourth Estate, the underhand and shady dealings between the GRA and SML have been unmasked.

Following huge public angst against the putrefying details of the Fourth Estate’s exposé, coupled with mounting calls from the NDC Minority in Parliament, Civil Society Organisations and other well-meaning Ghanaians for an investigation, President Akufo-Addo tasked KPMG to conduct an audit into SML’s dealings with the GRA.

After initial reluctance to make public, details of this audit, the Presidency last week published only portions of KMPG’s investigative report on the matter, which have nonetheless raised several grave matters that border on naked corruption and the abuse of the public purse.

 After a careful study of the Fourth Estate’s report and the published portions of the KPMG report on this matter, we deem it necessary to highlight the following fifteen (15) incontrovertible facts that are worth interrogating:

1. 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.

2. 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.

3. 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).

4. 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.

5. It is interesting to note, 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. This fact raises serious issues of potential insider-trading which are worth probing.

6. 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.

7. 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.

8. It has been established beyond every reasonable doubt, both by the Fourth Estate and KPMG, that no needs assessment or value for money assessment, were done before these illegal contracts were signed. Clearly, some people simply sat down and designed this sleazy scheme.

9. Even more bizarre, is the finding by KPMG, that SML was not able to provide any supporting documentation and relevant information to substantiate the investments they claim to have made.

10. The published sections of the KPMG report, clearly indicate that SML PARTIALLY delivered on its illegally-contracted transaction audit and price verification services. And that, the state did not derive the full benefits of payments it made to SML.

11. Also, it has been established beyond every reasonable doubt, that the illegally-contracted price verification service that was offered by SML was duplicitous, as Ghana’s existing Integrated Customs Management System (ICUMS) already has inbuilt capabilities of external price verification.

12. Again, the downstream petroleum audit agreement has been found by the Fourth Estate to be duplicitous, as superior and comprehensive revenue assurance measures have already been introduced by the regulator, the National Petroleum Authority (NPA), to curtail revenue losses in the downstream petroleum sector. This fact has been corroborated by the NPA, SML’s own IT guru and several industry players.

13. Again, it has been established by the Fourth Estate, that the Ghana Revenue Authority and the National Petroleum Authority do not use SML’s data for revenue collection in the downstream petroleum sector. This calls into question the relevance of the illegal downstream petroleum audit agreement of SML and the outrageous payments made under same.

14. Till date, the public is yet to be showed any evidence, that SML has detected any case of under-declaration or under-reporting or dilution or diversion, since it started executing its illegal downstream petroleum audit agreement.

15. Claims by SML that its services have stopped malfeasance in the downstream petroleum sector and saved the country revenue to the tune of GH₵3 billion has been established to be false. In fact, SML itself recanted this false claim after it was exposed by the Fourth Estate.

Distinguished friends from the media, in view of the foregoing material facts, it is unconscionable for the corrupt Akufo-Addo/Bawumia NPP government to hold that “there is a clear need for the downstream petroleum audit services provided by SML”.

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.

It should be obvious to every discerning mind, that the increased petroleum volumes and tax revenue recorded by the country in the downstream petroleum sector, are attributable to the general increase in the consumption and prices of petroleum products.

There is no concrete evidence that shows that the recorded volume and tax revenue increases in the downstream petroleum sector, are wholly or partly correlated to the work of SML.

Indisputable data published by IMANI Africa, show clearly that, the rate of increase in petroleum revenue has virtually been the same before and after SML’s illegal entry into the downstream petroleum sector.

Ladies and gentlemen, assuming without admitting, that SML’s illegal audit services in the downstream petroleum sector have had a bearing on the increased tax revenue recorded by the State to the tune of GH¢2.45 billion, how does that justify the payment of a colossal GH¢1,061,054,778, constituting nearly 50% of the revenue increment of GH¢2.45 billion, to SML?

What exactly did SML do to deserve such a gargantuan fee? This is simply incredible.

Ladies and gentlemen, it is evidently clear from the above-enumerated facts, that the justifications being mounted by government for the continuation of SML’s downstream petroleum audit services are completely untenable and hogwash.

 CONCLUSION

Friends from the media, it is an indisputable fact, that the transaction audit, external price verification and downstream petroleum audit contracts entered into between the Akufo-Addo/Bawumia government and SML, are unlawful.

The NDC is of the considered view, that these illegal transactions, are duplicitous, needless, and inimical to the interest of our dear nation.

Thus, the payments that have been made by the corrupt Akufo-Addo/Bawumia NPP government to SML under these unlawful transactions, totaling GH¢1,061,054,778, are illegal.

Those who sanctioned those payments have occasioned a huge financial loss to the State.

We in the NDC are appalled but unsurprised, by the decision by the corrupt Akufo-Addo/Bawumia NPP government to allow SML to continue the performance of their illegally-procured downstream petroleum audit services, while merely recommending the termination of the other unlawful contracts.

This is the greatest abetment of crime yet again by the ruling New Patriotic Party, and goes to fortify our suspicions that this scandal was cooked at the highest echelons of power.

Ladies and gentlemen, the refusal of the corrupt Akufo-Addo/Bawumia NPP government to publish the full KPMG investigative report on this matter and their decision to allow SML to continue performing their illegal downstream petroleum audit services, reaffirms government’s ploy to coverup this damning and sleazy SML scheme.

This is symptomatic of the well-established practice of rampant corruption, sordid coverups and the culture of impunity we have witnessed under the watch of President Akufo-Addo, the Chief Corruption Clearing Agent, in the last 7 years and over.

At a time Ghanaians are faced with an unprecedented economic crises and excruciating hardships, the least duty-bearers can do is to use the meager resources of the country judiciously and for the benefit of the people. Yet, the NPP continues to plunder the national coffers with brazen impunity.

The colossal amount of money which has been doled out to SML under their illegal contracts, by the nation-wrecking Akufo-Addo/Bawumia NPP government, could have been invested in social infrastructure or job creation ventures or education, healthcare delivery or other productive sectors, to improve the livelihoods of suffering Ghanaians.

Sadly, all these monies have gone to line certain private pockets due to the unbridled greed and selfishness of certain elements in the ruling New Patriotic Party.

My brothers and sisters, how long will the NPP continue to plunder the state at the expense of the already impoverished Ghanaian tax payer?
What crime has Ghanaians committed to deserve this level of wickedness from Akufo-Addo and Bawumia?

Ghanaians have had enough of the naked thievery and wanton abuse of the public purse by the corrupt Akufo-Addo/Bawumia NPP government.

Friends from the media, we in the NDC hereby demand:

1. the immediate termination of ALL the illegal contracts entered into between SML and the GRA;

2. the retrieval of ALL payments made by government to SML under the illegal agreements which have occasioned a huge financial loss to the State;

3. the immediate publication of the full KPMG investigative report on the dealings between SML and the GRA and;

4. the prosecution of all persons involved in the award of illegal contracts and the illegal payments thereof, 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 NDC is committed to promoting transparency, accountability and value for money in all government procurements.

As our Running Mate for the 2024 elections indicated in her erudite and inspiring address to the nation last week Wednesday, anyone who has participated in the plunder of the State will be held accountable.

“This is not a threat; it is a promise, premised on the wishes of our citizens across the various political and social divides, and hinged on the principle of accountability.”

Thank you for your attention.

SIGNED.
SAMMY GYAMFI ESQ.
National Communications Officer