Five CSOs Sue Government Over GHS 1 Billion Paid to SML in Revenue-Assurance Contract with GRA
The Government is currently facing legal action from five prominent Civil Society Organisations (CSOs) in the country, aiming to recover over GH₵1 billion that was paid to Strategic Mobilisation Limited (SML).
The CSOs, which include the Centre for Democratic Development (CDD-Ghana), the Africa Centre for Energy Policy (ACEP), the Ghana Anti-Corruption Coalition (GACC), the Human Rights and Governance Centre, and the Media Foundation for West Africa (MFWA), are questioning the legality of the payment and are seeking accountability in the use of public funds.
The lawsuit by the five CSOs follows the findings of an audit conducted by KPMG earlier this year, which was ordered by President Nana Addo Dankwa Akufo-Addo.
The audit scrutinized the contract between the Ghana Revenue Authority (GRA) and SML, a contract that was intended to enhance revenue assurance across the downstream petroleum sector, upstream petroleum production, and the minerals and metals resources value chain.
The KPMG report revealed significant irregularities, particularly the GRA’s failure to obtain the necessary approvals from the Public Procurement Authority (PPA) and Parliament before entering into the agreement with SML.
These irregularities raised serious concerns about the transparency and legality of the contract.
Sulemana Braimah, Executive Director of MFWA, speaking in an interview on the lawsuit against the Government, highlighted that the lawsuit is driven by a commitment to protecting state resources and ensuring public institutions are held accountable for their financial decisions.
He noted that the legal action was prompted by the findings of the KPMG report, which revealed what the CSOs believe to be violations of public procurement laws and parliamentary oversight.
Mr Braimah during the interview underscored the importance of adhering to legal frameworks, stating that laws are designed to ensure fairness, equity, and accountability.
The CSOs argue that the laws governing public procurement were breached in the award and execution of the SML contract, and are therefore seeking the return of any funds that may have been improperly paid.
“We are a country that is supposed to be governed by law and laws are not made for the beauty of having laws. Laws are made so that things will be done properly. Laws are made so that there will be equity, there will be fairness, there will be justness and there be accountability and in our view, the award of the SML contract and the delivery of the contract had in our view a number of things that are at variance with the laws of our land particularly and specifically relating to public procurement laws regarding parliamentary oversight and so on.”
“Essentially we are saying if these laws were breached, the right things must be done. If we’ve lost money as a result of these breaches, the money must be retrieved and sent back to the state. So essentially, we are saying the laws were not followed, monies have been paid, and those monies must be brought back to the state,” he argued.
