Government to End Kelni GVG Contract Over High Monitoring Costs
The Ministry of Communications and Digital Technology has announced it will not renew its contract with Kelni GVG, the private firm overseeing the country’s telecom traffic monitoring system, due to unsustainable costs.
Communications Minister Samuel Nartey George disclosed at a press briefing in Accra on April 9 that the government’s expenditure on monitoring has surged from 28% of revenues at the inception of the contract in 2018 to 84% as of October 2024.
“This contract has become unsustainable for the state,” Mr George stated. “We are spending more on monitoring revenues than we are retaining. This is unacceptable.”
The Common Monitoring Platform (CMP) was introduced to track international inbound calls and prevent revenue leakages within the telecommunications sector. However, the soaring costs of its operation have prompted the government to shift monitoring responsibilities to the National Communications Authority (NCA). The regulator has been instructed to prepare for a seamless transition and conduct a full review of the existing system.
Kelni GVG’s $89 million contract has faced consistent scrutiny, with policy think tank IMANI Africa questioning its value for money and challenging it in court. Parliament has also raised concerns over procurement processes, while some telecom operators have cited inefficiencies in the system’s performance.
Mr George stressed that the NCA’s management of telecom revenue monitoring would be subject to stringent accountability standards, starting with an operational audit of the current platform before assuming full oversight.
The move reflects Ghana’s broader efforts to enhance fiscal discipline and improve cost efficiency in state contracts, as the government seeks to curb rising public expenditure pressures.
