OSP Investigation Saves Ghana Over GH¢5.7 Billion in SML-GRA Contract Probe

Introduction

A landmark investigation by Ghana’s Office of the Special Prosecutor (OSP) has uncovered massive financial irregularities in contracts between Strategic Mobilisation Ghana Limited (SML) and the Ghana Revenue Authority (GRA), resulting in savings exceeding GH¢5.7 billion for the nation. This comprehensive probe, detailed in the OSP’s 2025 Half-Yearly Report, has sent shockwaves through Ghana’s political and economic landscape.

Key Points

Background

The controversy centers on contractual arrangements between SML, a private company, and Ghana’s tax collection authority, the GRA. These agreements were ostensibly designed to enhance revenue assurance across multiple sectors including downstream petroleum, upstream petroleum production, and the minerals and metals value chain. However, what appeared to be legitimate public-private partnerships soon came under scrutiny when questions arose about their necessity, execution, and financial implications.

The Office of the Special Prosecutor, established to investigate corruption and corruption-related offenses, initiated a comprehensive investigation into these contractual dealings. The probe examined the relationships between SML, the GRA, and the Ministry of Finance, focusing on whether proper procedures were followed and whether Ghana received value for money in these arrangements.

Analysis

The Scale of Financial Impact

The OSP’s findings reveal staggering financial implications. The investigation saved the Republic an aggregate of GH¢5,730,975,354.42 – a sum that represents approximately 1.2% of Ghana’s 2024 GDP. Additionally, the probe uncovered that the accused parties had deliberately sought to deprive Ghana of an additional US$2,799,604,864.71 through these arrangements.

Systemic Failures Identified

The investigation exposed multiple layers of systemic failure within Ghana’s public procurement and financial management systems:

**Lack of Genuine Need**: The OSP concluded that “there was no genuine need for contracting SML for the obligations it purported to perform.” This fundamental question about necessity should have been addressed before any contracts were awarded.

**Procedural Breaches**: The contracts were awarded through what the OSP described as “self-serving official patronage, sponsorship and promotion based on false and unverified claims.” This indicates a breakdown in the competitive bidding and due diligence processes that should govern public procurement.

**Statutory Violations**: The investigation found that the contracts were “riddled with severe breaches of statutory necessities,” with mandatory prior approvals “wantonly disregarded” by public officers who acted with “emboldened impunity.”

**Absence of Financial Controls**: Perhaps most concerning was the finding that “there was no established financial management system of monitoring and verification to ensure that the Republic was obtaining value for money paid to SML.” The payment channels were described as being “set on automatic mode, detached from actual performance, causing financial loss to the Republic.”

Key Figures Implicated

The OSP’s investigation implicated several high-ranking officials, suggesting a coordinated effort to facilitate these questionable arrangements:

– **Kenneth Nana Yaw Ofori-Atta**: Former Finance Minister
– **Ernest Darko Akore**: Former Chief of Staff to the Finance Minister
– **Emmanuel Kofi Nti and Ammishaddai Owusu-Amoah**: Former GRA Commissioners-General
– **Isaac Crentsil**: Former Commissioner of the Customs Division of the GRA
– **Col. (rtd) Kwadwo Damoah**: Member of Parliament for Jaman South and former Customs Commissioner
– **Evans Adusei**: Recommended owner and CEO of SML

These individuals allegedly created conditions that allowed SML to “largely pretend to perform the services under the various contracts, leading to immense financial loss to the Republic of about GH¢1,436,249,828.53.”

Practical Advice

For Government Institutions

1. **Strengthen Procurement Oversight**: Implement multi-layered approval processes for public contracts, especially those involving significant financial commitments.

2. **Enhance Transparency**: Make contract details publicly available and subject to regular audits by independent bodies.

3. **Improve Due Diligence**: Establish rigorous verification processes for claims made by potential contractors, particularly regarding their capabilities and track records.

4. **Implement Performance-Based Payments**: Develop systems where payments are directly tied to verifiable performance metrics rather than automatic disbursement schedules.

For Citizens and Civil Society

1. **Demand Accountability**: Engage with parliamentary oversight committees and request detailed explanations of public contracts.

2. **Support Anti-Corruption Agencies**: Provide information and support to institutions like the OSP to enable effective investigations.

3. **Promote Financial Literacy**: Understand basic public finance concepts to better evaluate government spending and contracts.

4. **Utilize Freedom of Information**: Exercise rights to access public information to scrutinize government activities.

For Businesses Seeking Government Contracts

1. **Maintain Ethical Standards**: Ensure all claims about capabilities and past performance are verifiable and truthful.

2. **Document Everything**: Keep comprehensive records of all communications, proposals, and deliverables.

3. **Comply with Regulations**: Strictly adhere to all statutory requirements and procurement guidelines.

4. **Focus on Value Creation**: Demonstrate clear, measurable benefits to the government and citizens rather than just financial gains.

FAQ

Conclusion

The OSP’s investigation into the SML-GRA contracts represents a significant moment in Ghana’s fight against corruption and financial mismanagement. The probe not only saved the nation over GH¢5.7 billion but also exposed systemic weaknesses in public procurement and financial oversight that must be addressed.

The findings underscore the importance of robust institutional frameworks, transparent processes, and vigilant oversight in public financial management. While the investigation has concluded, its implications will likely resonate for years to come, potentially leading to reforms in how Ghana approaches public-private partnerships and contract management.

As Ghana moves forward, the challenge will be to translate these findings into concrete reforms that prevent similar situations from arising in the future. This will require not just institutional changes but also a cultural shift toward greater accountability and transparency in public service.