GRA directs SML to resume downstream petroleum monitoring operations
The Ghana Revenue Authority (GRA) has directed Strategic Mobilisation Limited (SML) to resume its monitoring activities in the Downstream Petroleum sector starting from June 14, 2024.
This decision, as per a GRA statement dated June 12, 2024, was conveyed to Bulk Oil Distributors and aligns with directives from President Akufo-Addo following the comprehensive KPMG report.
The GRA’s statement highlights the necessity for SML to ensure that all systems are fully functional and in compliance with relevant standards and regulations.
This move aims to provide accurate, reliable, and timely monitoring services to bolster revenue assurance. The Bulk Oil Distributors are expected to cooperate to facilitate the effective resumption of these monitoring operations.
“We inform you that Strategic Mobilisation Limited (SML) is directed to resume its monitoring operations in the Downstream Petroleum sector effective June 14, 2024, as per the Presidential Directives on the KPMG report. SML must ensure all systems are fully operational and comply with relevant standards and regulations to provide accurate, reliable, and timely monitoring services to support our revenue assurance. The Bulk Oil Distributors must cooperate to ensure a successful resumption of the monitoring exercise,” read parts of the statement.
Additionally, the Ministry of Energy, in a June 20 statement, announced the development of new measurement standards for the oil and gas sector in collaboration with the Ghana Standards Authority (GSA), the Ministry of Trade and Industry, and other relevant stakeholders.
These new standards are based on the Singaporean Standard and utilize the Coriolis mass flow metering system.
“The GSA, in collaboration with the Ministry of Energy, the Ministry of Trade and Industry, and other stakeholders, has developed new standards for measurements in the oil and gas sector, based on the Singaporean Standard, utilizing the Coriolis mass flow metering system. The Minister for Trade and Industry, under Section 13 of the Ghana Standards Authority Act, 2022, Act 1078, has declared these standards operational and mandatory. All entities undertaking measurements for revenue assurance in the oil and gas sector must adhere to the new standards,” the Ministry noted.
The directive for SML’s operational resumption and the introduction of new measurement standards follow President Akufo-Addo’s commissioning of KPMG on January 2 to audit the contract between the GRA and SML.
The KPMG report reveals significant financial details, noting that SML received a total of GH¢1,061,054,778.00 from 2018 to the present.
This includes GH¢454,860,396.27 for transaction audit and external price verification payments and GH¢945,342,007.29 for downstream petroleum measurement payments.
The report provides an in-depth analysis of the partnership, aimed at enhancing revenue collection in Ghana through advanced technological solutions, reducing leakages, and increasing overall efficiency in the GRA’s operations.
