NDC accuses Akufo-Addo/Bawumia govt of corruption in GRA-SML scandal

The press conference, held on Monday, April 29, 2024, focused on exposing what the NDC considers serious acts of corruption in the dealings between SML and the GRA.

According to the NDC's National Communications Officer, Sammy Gyamfi, the scandal involves illegal contracts awarded by the NPP government to SML, a company with no prior experience in revenue assurance or transaction auditing.

In a press release, the NDC stated that the contracts, awarded through sole sourcing and without proper procurement processes, have led to the payment of over GH¢1 billion to SML from taxpayer funds.

The NDC highlighted several key points from their investigation, including the fact that SML was incorporated shortly after the NPP came into power, raising suspicions of insider trading.

They also pointed out that the agreements between the government and SML did not undergo the necessary approvals required by law, making them illegal and void.

Despite claims by SML that their services have saved the country revenue, investigations by both the media and an audit by KPMG have shown that SML did not provide the expected benefits under the contracts.

The NDC emphasized that they are not against revenue assurance but are against illegal and duplicitous transactions that do not benefit the state.

The NDC called on the government to take action against those involved in the scandal and to ensure that such corrupt practices are not repeated in the future. They also urged the public to remain vigilant and hold the government accountable for its actions.

Read the full statement below:

PRESS STATEMENT READ BY THE NATIONAL COMMUNICATIONS OFFICER OF THE NATIONAL DEMOCRATIC CONGRESS AT A MOMENT OF TRUTH PRESS CONFERENCE HELD ON MONDAY, 29TH APRIL, 2024 AT THE NDC HEADQUARTERS.

 

Good afternoon distinguished ladies and gentlemen of the media. We thank you for honouring our invitation to this important Moment of Truth press conference. 

 

Today, we shall be focusing on the raging matters in the media, arising out of the stinking SML scandal which has outraged the entire nation. 

 

The NDC has noted with disgust, attempts by the scandal-riddled Akufo-Addo/Bawumia NPP government to cover-up serious acts of corruption surrounding the dealings between a privately-owned Ghanaian company, Strategic Mobilization Ghana Limited (SML) on one hand and the Ghana Revenue Authority (GRA) on the other hand.

 

These acts of corruption have arisen out of the award of certain illegal contracts by the ruling NPP government, acting through the Ghana Revenue Authority (GRA) and the Ministry of Finance to SML.

 

Thanks to a patriotic investigative work carried out by one of your own in the media, an illustrious son of Ghana, Manasseh Azure Awuni and his colleagues at the Fourth Estate, the underhand and shady dealings between the GRA and SML have been unmasked. 

 

Following huge public angst against the putrefying details of the Fourth Estate’s exposé, coupled with mounting calls from the NDC Minority in Parliament, Civil Society Organisations and other well-meaning Ghanaians for an investigation, President Akufo-Addo tasked KPMG to conduct an audit into SML’s dealings with the GRA. 

 

After initial reluctance to make public, details of this audit, the Presidency last week published only portions of KMPG’s investigative report on the matter, which have nonetheless raised several grave matters that border on naked corruption and the abuse of the public purse.  

 After a careful study of the Fourth Estate’s report and the published portions of the KPMG report on this matter, we deem it necessary to highlight the following fifteen (15) incontrovertible facts that are worth interrogating: 

 

1. SML was incorporated on 14th February, 2017. This was barely thirty-seven (37) days after the NPP assumed the reins of power on 7th January, 2017. The stated capital of the company is GH¢10,000. The paid up shares of the company is GH¢10,000. The shareholder and Chief Executive Officer of the company is one Mr. Evans Adusei who owns and runs Evans Timbers Limited.

 

2. Barely four (4) months after the incorporation of SML, the corrupt Akufo-Addo/Bawumia NPP government, acting through the Ghana Revenue Authority, sought to engage SML to provide transaction audit services at the port through sole sourcing. Between June 2017 and September 2017, the GRA made three (3) requests to the Public Procurement Authority (PPA) for approval to engage SML through sole sourcing. All these three (3) requests were refused by the PPA. 

 

3. All this happened at a time that SML, an offshoot of a Timber company, had no prior experience in revenue assurance or transaction auditing. It goes without saying, that GRA’s requests for approval to engage SML through sole sourcing were refused by the PPA because the requests did not meet the mandatory requirements of section 40 of the Public Procurement Act, 2003 (ACT 663).

 

4. In furtherance of their questionable and unholy determination to engage SML through sole sourcing, the GRA with the tacit support of the Ken Ofori Atta-led Finance Ministry, engaged SML through the back door as a sub-contractor of West Blue, which was already providing transaction audit services for the State at the port. 

SML was made to take over the transaction audit services of West Blue in December 2018 when the latter was kicked out. Subsequently, the GRA added external price verification to the contracted services of SML. Additionally, the GRA also a downstream petroleum audit agreement with SML. Till date, the GRA remains the only customer of SML.

 

5. It is interesting to note, that the Managing Director of SML, Christian Tetteh Sottie was the Technical Advisor to the Commissioner-General of the GRA, who left his job at the GRA to manage SML, as soon as the company commenced the implementation of its contract with the GRA in the year 2020. This fact raises serious issues of potential insider-trading which are worth probing. 

 

6. It is instructive to note, that all these (2018-2019) transactions between the Akufo-Addo/Bawumia NPP government, and SML were done in violation of the Public Procurement law, the GRA Act and the Public Financial Management Act (PFMA). This is because the agreements did not go through the mandatorily required procurement process. Neither were they approved by the board of the GRA, as required by the GRA Act. Additionally, the agreements were not approved by Parliament as required by section 33 of the PFMA. The agreements are therefore illegal, null, void and of no legal effect whatsoever. 

 

7. Sadly, the irredeemably corrupt Akufo-Addo/Bawumia NPP government has paid a staggering GH¢1,061,054,778 to SML under these illegal contracts from the taxes of suffering Ghanaians. This fact is contained in sections of the KPMG investigative report published by the Presidency. 

 

8. It has been established beyond every reasonable doubt, both by the Fourth Estate and KPMG, that no needs assessment or value for money assessment, were done before these illegal contracts were signed. Clearly, some people simply sat down and designed this sleazy scheme.

 

9. Even more bizarre, is the finding by KPMG, that SML was not able to provide any supporting documentation and relevant information to substantiate the investments they claim to have made.  

 

10. The published sections of the KPMG report, clearly indicate that SML PARTIALLY delivered on its illegally-contracted transaction audit and price verification services. And that, the state did not derive the full benefits of payments it made to SML. 

 

11. Also, it has been established beyond every reasonable doubt, that the illegally-contracted price verification service that was offered by SML was duplicitous, as Ghana’s existing Integrated Customs Management System (ICUMS) already has inbuilt capabilities of external price verification. 

 

12. Again, the downstream petroleum audit agreement has been found by the Fourth Estate to be duplicitous, as superior and comprehensive revenue assurance measures have already been introduced by the regulator, the National Petroleum Authority (NPA), to curtail revenue losses in the downstream petroleum sector. This fact has been corroborated by the NPA, SML’s own IT guru and several industry players.

 

13. Again, it has been established by the Fourth Estate, that the Ghana Revenue Authority and the National Petroleum Authority do not use SML’s data for revenue collection in the downstream petroleum sector. This calls into question the relevance of the illegal downstream petroleum audit agreement of SML and the outrageous payments made under same. 

 

14. Till date, the public is yet to be showed any evidence, that SML has detected any case of under-declaration or under-reporting or dilution or diversion, since it started executing its illegal downstream petroleum audit agreement.

 

15. Claims by SML that its services have stopped malfeasance in the downstream petroleum sector and saved the country revenue to the tune of GH₵3 billion has been established to be false. In fact, SML itself recanted this false claim after it was exposed by the Fourth Estate.

 

Distinguished friends from the media, in view of the foregoing material facts, it is unconscionable for the corrupt Akufo-Addo/Bawumia NPP government to hold that “there is a clear need for the downstream petroleum audit services provided by SML”. 

Let me state unequivocally, that the NDC is not in principle, against revenue assurance. What we vehemently against, are revenue assurance transactions that are awarded in contravention of the laws of Ghana and the payment of outrageous fees under such illegal transactions. What we are vehemently against, are illegal and duplicitous revenue assurance transactions that offer no value for money for the State. 

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