{"id":63013,"date":"2023-12-24T07:00:26","date_gmt":"2023-12-24T07:00:26","guid":{"rendered":"https:\/\/www.africa-press.net\/ghana\/?p=63013"},"modified":"2023-12-24T05:21:56","modified_gmt":"2023-12-24T05:21:56","slug":"sml-contract-in-its-current-shape-is-not-valid-and-must-come-to-parliament-for-approval-ato-forson","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/ghana\/all-news\/sml-contract-in-its-current-shape-is-not-valid-and-must-come-to-parliament-for-approval-ato-forson","title":{"rendered":"SML contract in its current shape is not valid and must come to parliament for approval \u2013 Ato Forson"},"content":{"rendered":"<p><span style=\"color: #ff6600\"><strong>Africa-Press &#8211; Ghana. <\/strong><\/span><b>The Minority Leader Dr Cassiel Ato Forson has said that the contract awarded to the Strategic Mobilsation Ghana Limited (SML) is not valid until it goes to Parliament.<\/b><\/p>\n<p>He wants the contract suspended.<\/p>\n<p>Speaking to journalists on the deal on Friday December 22, Dr Forson said \u201cAs 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.<\/p>\n<p>\u201cAgain, 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.\u201d<\/p>\n<p>\u201cSo the contract in its current shape is not valid and must come to parliament for approval. 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.\u201d<\/p>\n<p>The Ghana Revenue Authority (GRA) earlier stated that all legal and proper processes were followed in procuring the services of Strategic Mobilsation Ghana Limited (SML).<\/p>\n<p>GRA said it was confident that with the introduction of various initiatives, technology, and revenue assurance measures such as SML provides, the Authority will continue to see a significant increase in revenue such as the about 50% year-on-year increase in revenue this year.<\/p>\n<p>The GRA statement comes after the Fourth Estate in a report published on December 18 said its investigations disproved wild claims by SML Company that it had helped to save Ghana billions of cedis that would have been lost in the downstream petroleum sector but for its intervention.<\/p>\n<p>The company also tried to justify why it receives up to GH\u20b524 million monthly payments from the government of Ghana in a questionable contract it signed with the Ministry of Finance and the Ghana Revenue Authority (GRA).<\/p>\n<p>The Fourth Estate, however, revealed that the company, with the help of a section of Ghana\u2019s media, had made false and unsubstantiated claims of its operations that have served as the basis for the payment it received. It appears the Ministry of Finance and the GRA were aware the claims were false, for some officials of the GRA said they had confronted the company about its claims of savings and volumes on two separate occasions.<\/p>\n<p>A few hours after the reporters confronted the management of SML with the findings of the investigation and asked for a response, the major services it claimed to render to the government disappeared from the company\u2019s website.<\/p>\n<p>The investigation also uncovered that at a time players in the downstream petroleum sector were questioning the relevance of SML\u2019s involvement, the Minister of Finance, Ken Ofori Atta, initiated a more outrageous deal that would entitle the company to over $100 million every year for the next 10 years.<\/p>\n<p>But the GRA in a statement on Wednesday, December 20 restated that, \u201cthe consolidated contract which is a risk-reward contract seeks to bring efficiency in Revenue Assurance Services provided to GRA. SML per the contract is required to provide resources for the execution of the contract. By implication, if there is no value addition, SML is not paid. In short, the principle of risk and reward is the fulcrum of the contract.<\/p>\n<p>\u201cThe Contract is for five (5) years and is performance-based and approved under Section 40 of the Public Procurement Act, Act 663, 2003. The Board and Management affirm that all legal and proper processes were followed in procuring the services of SML.<\/p>\n<p>\u201cSML solely financed the capital expenditures and cutting-edge technology that is employed in the monitoring and auditing services provided to GRA in the Downstream Petroleum Sector.\u201d<\/p>\n<p>Below is the GRA statement&#8230;<\/p>\n<p>STRATEGIC MOBILISATION LIMITED REVENUE ASSURANCE CONTRACT<\/p>\n<p>The attention of the Board and Management of Ghana Revenue Authority (GRA) has been drawn to a publication made by The Fourth Estate on its website on 18th December 2023 and subsequent publications in various media.<\/p>\n<p>The Publication alleges that the Hon. Minister for Finance has awarded a \u201cquestionable\u201d contract to Strategic Mobilization Ghana Limited (SML) to monitor Upstream Petroleum Production and to Audit the value chain of Minerals and Metals Resources.<\/p>\n<p>BACKGROUND TO CONTRACT<\/p>\n<p>The GRA affirms that, together with the Ministry of Finance, it has signed a consolidated contract with SML to monitor and audit;<\/p>\n<p>(a) Downstream Petroleum Sector (2019) (b) Upstream Petroleum Production (2023)<\/p>\n<p>(c) Minerals and Metals Resources Value Chain (2023)<\/p>\n<p>The new and consolidated contract which is for a term of five (5) years and not ten (10) years (as alleged by the publication) was agreed upon based on the performance of SML in monitoring the downstream petroleum sector and the provision of instant reconciliation of real- time data in the sector.<\/p>\n<p>PERFORMANCE OF DOWNSTREAM PETROLEUM ASSURANCE CONTRACT<\/p>\n<p>Currently, oil deposited by the Bulk-Oil Distribution Companies in the depots is measured by SML with the aid of sensors installed on the depots (Red flow metres). During offloading from the depots, SML again measures all the various liftings of the Oil Marketing Companies (OMCs).<\/p>\n<p>THE CONSOLIDATED CONTRACT<\/p>\n<p>Based on the performance of Strategic Mobilization Ghana (SML) Limited, the Ministry of Finance directed that the existing contract of SML be expanded to cover the petroleum Upstream and the Mining Sector to minimize the risk of revenue leakages.<\/p>\n<p>The Consolidated Contract seeks to leverage the experience, technology, and know-how of SML Ghana Limited in the Downstream Petroleum Sector and the Minerals and Metals Sector to provide revenue assurance in the Upstream.<\/p>\n<p>RESPONSE TO ALLEGATIONS BY FOURTH ESTATE<\/p>\n<p>CONCLUSION<\/p>\n<p>GRA is confident that with the introduction of various initiatives, technology, and revenue assurance measures such as this, GRA will continue to see a significant increase in revenue such as the about 50% year-on-year increase in revenue this year.<\/p>\n<p>However, GRA will continue to explore more methods of blocking leakages and increasing compliance to enable us to attain a national Tax to GDP ratio of over 18%.<\/p>\n<p><b>Source: 3NEWS.COM<\/b><\/p>\n<p><strong>For More News And Analysis About <a href=\"https:\/\/www.africa-press.net\/ghana\">Ghana<\/a> Follow <a href=\"https:\/\/www.africa-press.net\/\">Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Africa-Press &#8211; Ghana. The Minority Leader Dr Cassiel Ato Forson has said that the contract awarded to the Strategic Mobilsation Ghana Limited (SML) is not valid until it goes to Parliament. He wants the contract suspended. Speaking to journalists on the deal on Friday December 22, Dr Forson said \u201cAs part of the report the [&hellip;]<\/p>\n","protected":false},"author":84,"featured_media":63012,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,6],"tags":[5092,5096,429],"class_list":["post-63013","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-files","tag-africa-press","tag-africa-press-ghana","tag-ghana"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.1 (Yoast SEO v27.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>SML contract in its current shape is not valid and must come to parliament for approval \u2013 Ato Forson - Ghana<\/title>\n<meta name=\"description\" content=\"The Minority Leader Dr Cassiel Ato Forson has said that the contract awarded to the Strategic Mobilsation Ghana Limit ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/ghana\/all-news\/sml-contract-in-its-current-shape-is-not-valid-and-must-come-to-parliament-for-approval-ato-forson\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"SML contract in its current shape is not valid and must come to parliament for approval \u2013 Ato Forson\" \/>\n<meta property=\"og:description\" content=\"The Minority Leader Dr Cassiel Ato Forson has said that the contract awarded to the Strategic Mobilsation Ghana Limit ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/ghana\/all-news\/sml-contract-in-its-current-shape-is-not-valid-and-must-come-to-parliament-for-approval-ato-forson\" \/>\n<meta property=\"og:site_name\" content=\"Ghana\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2023-12-24T07:00:26+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/ghana\/sites\/18\/2023\/12\/sm_1703382573.368731.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1277\" \/>\n\t<meta property=\"og:image:height\" content=\"717\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/ghana\/all-news\/sml-contract-in-its-current-shape-is-not-valid-and-must-come-to-parliament-for-approval-ato-forson#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/ghana\/all-news\/sml-contract-in-its-current-shape-is-not-valid-and-must-come-to-parliament-for-approval-ato-forson\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/ghana\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"SML contract in its current shape is not valid and must come to parliament for approval \u2013 Ato Forson\",\"datePublished\":\"2023-12-24T07:00:26+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/ghana\/all-news\/sml-contract-in-its-current-shape-is-not-valid-and-must-come-to-parliament-for-approval-ato-forson\"},\"wordCount\":1033,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/ghana\/all-news\/sml-contract-in-its-current-shape-is-not-valid-and-must-come-to-parliament-for-approval-ato-forson#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/ghana\/sites\/18\/2023\/12\/sm_1703382573.368731.jpg\",\"keywords\":[\"Africa Press\",\"Africa Press-Ghana\",\"ghana\"],\"articleSection\":[\"all news\",\"files\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/ghana\/all-news\/sml-contract-in-its-current-shape-is-not-valid-and-must-come-to-parliament-for-approval-ato-forson#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/ghana\/all-news\/sml-contract-in-its-current-shape-is-not-valid-and-must-come-to-parliament-for-approval-ato-forson\",\"url\":\"https:\/\/www.africa-press.net\/ghana\/all-news\/sml-contract-in-its-current-shape-is-not-valid-and-must-come-to-parliament-for-approval-ato-forson\",\"name\":\"SML contract in its current shape is not valid and must come to parliament for approval \u2013 Ato Forson - 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