From SMEL to SML: Name Change Leads to Questionable Contracts Without PPA Approval
In a startling revelation, the recently released KPMG report has shed light on the scandalous transaction involving the Ghana Revenue Authority (GRA) and Strategic Mobilisation Limited (SML). This revelation, found on page 14 of the comprehensive KPMG audit, raises serious questions about the integrity of the procurement process and the government’s commitment to fighting corruption.
The report outlines that Strategic Mobilisation Limited (SMEL) was initially refused approval by the Public Procurement Authority (PPA) on three separate occasions. The reasons cited were consistent and clear: SMEL lacked the “capacity and experience” to deliver on the contract. These rejections underscore a fundamental issue—ensuring that only competent and experienced companies are awarded contracts, which is a cornerstone of fair and transparent procurement processes.
However, in a rather dubious turn of events, SMEL managed to circumvent these rejections by simply rebranding itself as SML. Following this name change, the company astonishingly secured multiple contracts, all without the required PPA approval. This sequence of events raises serious concerns about the authenticity and transparency of the procurement procedures being followed by the GRA and other governmental bodies.
The contracts in question, obtained under the new guise of SML, highlight a troubling disregard for established procurement protocols. The fact that a company previously deemed incapable by the PPA can obtain significant government contracts merely by altering its name points to a deeper, systemic issue within the procurement framework.
This scenario not only undermines the credibility of the procurement process but also casts a long shadow on the government’s professed commitment to fighting corruption. The very essence of corruption includes the manipulation and circumvention of established procedures to benefit a select few, and this case exemplifies such malpractice.
Payment to SML without Flow Meter Report
One of the most glaring infractions noted in the KPMG report is the payment made to SML in June 2020. The GRA paid the amounts invoiced by SML even though the crucial flow meter reports, which serve as evidence of products lifted, were not attached to the invoice. SML claimed they were unable to attach these reports due to testing their flow meters and conducting manual recordings, yet they failed to provide any evidence of these manual recordings. This lack of documentation and transparency is highly irregular and raises red flags about the legitimacy of the transactions.
Inconsistent Payment Practices by GRA
The report also highlights inconsistent payment practices by the GRA from September 2020 to April 2021. During this period, the GRA did not withhold or deduct taxes payable before making payments to SML. This oversight resulted in an excess payment of GH₵13,382,941. Furthermore, with estimated interest of GH₵18,495,068, the total liability due to the GRA is a staggering GH₵31,878,008. As of now, the refund is yet to be received, pointing to a significant financial discrepancy that demands immediate attention and rectification.
Non-compliance with VAT Filing by SML
In another troubling revelation, the KPMG report points out instances where SML failed to file VAT, directly contradicting tax regulations. This non-compliance with VAT filing not only violates tax laws but also indicates a potential pattern of financial mismanagement and regulatory evasion by SML. The GRA’s apparent failure to enforce compliance further exacerbates the situation, suggesting a lack of oversight and accountability within the agency.
The Way Forward
The KPMG report, available for public scrutiny, reveals a pattern that is all too familiar in governance—where influential entities maneuver through loopholes, leaving behind a trail of questionable dealings. Such practices erode public trust and tarnish the government’s image, especially when transparency and accountability are paramount.
Given these revelations, several pressing questions arise:
- How did SML manage to secure these contracts without the necessary approvals?
- What measures are being taken to investigate and address these apparent breaches of procurement regulations?
- Is there a hidden network of influence and favoritism at play within the GRA and other governmental bodies?
In response to these damning findings, President Akufo-Addo has vowed to take decisive action. A recent article on Graphic Online details the President’s steps to address the irregularities and implement KPMG’s recommendations. Yet, this response raises a critical question: why were these infractions allowed to persist for so long? (https://www.graphic.com.gh/news/general-news/president-akufo-addo-takes-action-on-gra-sml-transactions-following-kpmgs-recommendations.html)
The government’s commitment to fighting corruption is under intense scrutiny. The public’s trust hinges on more than promises; it demands visible, effective action. The President’s recent pledges must mark the start of a comprehensive crackdown on corruption and procurement malpractices.
Moreover, this incident should prompt a review and reinforcement of procurement policies to ensure that such breaches are not only identified but prevented in the future. The integrity of the procurement process is vital for the judicious use of public funds and the overall health of governance.
The SML/GRA deal, as outlined in the KPMG report, serves as a glaring example of potential corruption and the urgent need for reform. The government must demonstrate its commitment to transparency and anti-corruption by taking decisive action. The public deserves answers, and more importantly, they deserve to see that justice is served and that such shady dealings are not allowed to continue unchecked.
find report here https://www.presidency.gov.gh/Investigation%20Report-Audit-RevenueAssuranceContractsTransactionsbetween%20GRA-SML.pdf
References
KPMG Report on GRA-SML Transaction. (2024). Available at: Graphic Online
