Parliament's Finance Committee has announced its decision to investigate Strategic Mobilisation Ghana Ltd (SML) over allegations surrounding a purported 10-year contract with the Finance Ministry during Ken Ofori-Atta's tenure.

Ranking Member on the Finance Committee, Dr Cassiel Ato Forson, disclosed this information to the media on Friday, December 22.

"It is also important to note that the same Finance Committee working with parliament has resolved to initiate a probe into the SML. I urge the Committee of Finance to conduct this probe diligently and in a manner that will show transparency," Minority Leader, Dr Cassiel Ato Forson said.

A Fourth Estate report has raised concerns about the legitimacy of a contract, indicating that Finance Minister Ken Ofori-Atta has expanded it, potentially costing the state $100 million over the next decade.

The contract assigns Strategic Mobilisation Ghana Limited (SML) the responsibility of monitoring and reporting fuel product diversion, dilution, and general noncompliance in the petroleum industry, tasks previously handled by the National Petroleum Authority (NPA).

Strategic Mobilisation Ghana Limited (SML) has issued a response to allegations surrounding a purported 10-year contract with the Finance Ministry during Ken Ofori-Atta's tenure.

The company contested the claims made in "The Fourth Estate" documentary, asserting that it contains misrepresentations and false information.

In a press release from its Public Relations Unit on Tuesday, December 19, SML clarified that its contractual agreement with the Finance Ministry and the Ghana Revenue Authority (GRA) spans 5 years, contrary to the reported 10 years. Additionally, the company denied the assertion that it annually receives a substantial $100 million for its services.

“The documentary represents a set of misrepresentations, false claims, and a general lack of understanding of the entire operations of the company. We challenge Fourth Estate to produce any contract anywhere that is for a 10-year period.”

“The 5th PPA Board at its 46th Board meeting in a letter referenced PPA/CEO/09/2286/23 approved a contract duration of five (5) years.”

Meanwhile, the Finance Committee of Parliament has proposed a suspension of all payments associated with the government's contract with Strategic Mobilisation Ghana Ltd (SML) starting next year.

This recommendation is based on the need for a parliamentary investigation into the said contract.

According to the committee, after a thorough review of the contract, it was determined that Parliamentary approval is necessary in accordance with the Financial Management Act. Consequently, the committee deems it essential to notify the Ghana Revenue Authority (GRA) about this statutory requirement.

This development came to light during a debate on the approval of the budget for other government obligations in the year 2024.

Minority Leader, Dr Cassiel Ato Forson speaking to journalists on the deal said “As part of the report the parliament of the Republic of Ghana has resolved that the Ghana Revenue Authority (GRA) must immediately stop all payments to SML beginning January 1, 2024.

“Again, parliament resolves that GRA must be aware that the contract that the Ministry of Finance has with SML constitutes a multi-year commitment and section 33 of the Public Financial Management Act is clear on the matter that all multi-year commitments must be presented to parliament for consideration and approval.”

“So the contract in its current shape is not valid and must come to parliament for approval," he said.