The Tema and Osu offices belonging to Strategic Mobilisation Ghana Limited (SML) have been raided by the Office of the Special Prosecutor (OSP).

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According to information from investigative journalist, Mr Manasseh Azure Awuni, the raid conducted by personnel of the National Security Secretariat was possible due to a search warrant that was secured.

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"Our sources indicate that the OSP is in the advanced stages of its investigation into the SML scandal and is interested in electronic information from the company’s servers," Mr Awuni wrote in an article.

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It is important to note that the former Finance Minister Ken Ofori-Atta has been declared wanted by the OSP for causing financial loss to the state in several dealings, which include the contractual arrangement between Strategic Mobilisation Ghana Limited and the Ghana Revenue Authority for the stated objective of the enhancement of revenue assurance in the downstream petroleum sector, upstream petroleum production, and minerals and metals resource value chain.

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The activities of SML came to light years ago after Manasseh Azure Awuni raised contractual breaches in a deal involving Ghana Revenue Authority (GRA) and Strategic Mobilisation Limited (SML).

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The original purpose of the GRA-SML contract was to boost revenue assurance in vital sectors of Ghana’s economy, including the downstream petroleum sector, upstream petroleum production, and the minerals and metals value chain.

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The goal was to streamline revenue collection, ensuring greater transparency and efficiency in these high-revenue sectors.

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Following concerns, an in-depth audit was carried out by international firm KPMG, commissioned by former President Nana Addo Dankwa Akufo-Addo.

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The audit was launched to examine the contractual agreements between the Ghana Revenue Authority (GRA) and SML, with a particular focus on the procedures and approvals related to the contract.

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The KPMG audit uncovered significant procedural errors and regulatory violations in awarding the contract. Specifically, the GRA did not obtain the required approvals from the Public Procurement Authority (PPA) and failed to seek parliamentary oversight before finalizing the agreement with SML

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GRA entered into six (6) service agreements with SML, utilising the single-source method without obtaining approval from PPA, as outlined below:

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a) Transaction Audit Services—1 June 2018

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b) Contract Extension—1 January 2019

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c) External Price Verification Services—1 April 2019

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d) Consolidation Services Agreement (Transaction Audit & External Verification Services)—3 October 2019

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e) Measurement Audit of Downstream Petroleum Products—3 October 2019

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f) Addendum to Measurement Audit for Downstream Petroleum Products Agreement—29 July 2020.

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The audit report also revealed that SML owes the government over GHC31 million in taxes.

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During the period from 1 September 2020 to 30 April 2021, a bulk payment to SML covering invoices for an 8-month period did not have VAT and WHT deductions, amounting to GHE13.38 million.

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This contradicts GRA's standard practice of deducting such taxes for payments to SML between 1 June 2020 and 31 August 2023.

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Additionally, SML failed to fulfil its statutory obligations by neither filing returns nor remitting these taxes to GRA.

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Pursuant to Section 71(1) of the RA Act, the accrued interest on the tax liability is estimated at GHC18.50 million owed by SML to GRA as of 31 January 2024. Consequently, the total liability incurred by SML amounts to GHC31.88 million.

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In May 2024, Member of Parliament for Ningo-Prampram, Sam Nartey George, noted that the then Finance Minister Ken Ofori-Atta had a role to play in the controversial deal.

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"The SML or SMEL deal is a clear example of what Justice Dotse described as a create, loot and share. One thing Ghanaians must bear in mind is that all of these happened with the tacit approval of the then Finance Minister, Ken Ofori-Atta."

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"As usual, he is trying to run under the radar and people are failing to realise, the key cardinal role he played in this entire arrangement," he stated while speaking on JoyNews' Newsfile programme on Saturday, May 25.

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In February this year, SML dragged Azure Awuni to court, claiming that Manasseh referred to its agreement with the government as “the biggest scam” and labeled the deal as “shady” while branding the entire situation “the SML scandal.”

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SML is seeking several remedies from the court, including:

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GH¢1,000,000 in general damages for defamation.

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GH¢20,000,000 in exemplary damages for what it describes as malicious reporting.

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A perpetual injunction to prevent Manasseh from making further defamatory claims about the company.

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A public retraction and apology specifically for statements made in Chapter 28 of his book.

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Any other reliefs the court deems appropriate.

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