SML Lawyer Cephas Boyuo: Company Funded 100% of GRA Project from Own Assets – No Parliamentary Approval Needed

Strategic Mobilization Ghana Limited (SML), a key player in Ghana’s revenue mobilization efforts, has been at the center of recent debates over its contract with the Ghana Revenue Authority (GRA). In a bold response to allegations from the Office of the Special Prosecutor (OSP), SML’s legal counsel, Cephas Boyuo, clarified critical facts about the agreement. This article breaks down the SML-GRA contract details, funding sources, and legal standing under Ghanaian law, offering clear insights for stakeholders interested in public procurement transparency and fiscal responsibility.

Introduction

The controversy surrounding the SML contract with the Government of Ghana highlights ongoing discussions about public financial management and contract oversight. On November 6, Cephas Boyuo, the legal professional representing Strategic Mobilization Ghana Limited (SML), publicly addressed misconceptions propagated by the OSP. He emphasized that SML funded 100% of its undertaking from its personal assets, bearing all costs without any financial burden on the state.

This revelation challenges narratives suggesting government exposure or the need for parliamentary ratification. For those searching for accurate details on the SML GRA contract, this piece provides a pedagogical overview, explaining key legal thresholds like Section 331 of the Public Financial Management Act (PFMA) and the implications of zero contingent liabilities.

Background on SML and the GRA Partnership

SML specializes in revenue assurance and audit technology solutions, deploying advanced tools such as meters, servers, solar systems, and ICT infrastructure to enhance tax compliance and revenue collection for the GRA. The company’s role supports Ghana’s fiscal goals by improving downstream petroleum audits and other sectors, but recent OSP scrutiny has sparked questions about contract validity and funding.

Analysis

Delving into Cephas Boyuo’s statements, the core dispute revolves around whether the SML-GRA contract triggers mandatory parliamentary approval. Boyuo categorically dismissed OSP assertions, labeling them as “misconceptions and misrepresentations.” His analysis hinges on the absence of multi-year financial liabilities, debt exposure, or contingent liabilities— the precise triggers outlined in PFMA Section 331.

Decoding PFMA Section 331

The Public Financial Management Act, 2016 (Act 921), Section 331 mandates parliamentary approval for certain commitments, including:

• Multi-year financial obligations exceeding specified thresholds.
• State guarantees or indemnities creating contingent liabilities.
• Any arrangement exposing government to debt or fiscal risk.

Boyuo stressed that the SML agreement fits none of these categories, aligning with established national practice. This positions the SML funded own assets model as a private investment initiative with performance-based fees, not a subsidized public project.

Furthermore, SML’s self-funding—covering every software, meter, server, solar system, ICT tool, installation, operation, and maintenance—eliminates government upfront or ongoing payments. Boyuo noted, “Government did not pay a pesewa, government did not guarantee anything, government did not provide IT or assume any risk—in fact, government has zero exposure.”

Summary

In summary, Cephas Boyuo’s press address on November 6 refuted OSP claims by affirming the SML-GRA contract’s compliance with Ghanaian law. Key takeaways include full private funding by SML, payment of over 500 million Ghana cedis in import duties, VAT, levies, and statutory fees (excluding administrative costs), and zero financial risk to the government. This clarifies why no parliamentary approval was required, countering misinformation about the SML contract parliamentary approval debate.

Key Points

Practical Advice

For businesses eyeing public-private partnerships (PPPs) in Ghana, emulate SML’s model of self-funding to bypass stringent approval processes. Here’s actionable guidance:

Structuring Contracts for Compliance

• Adopt Performance-Based Fees: Tie payments to verifiable results, like revenue uplifts, to avoid fixed obligations.
• Document Private Funding: Maintain records of all asset imports, installations, and tax payments to prove zero public liability.
• Consult PFMA Experts: Engage legal counsel early to review agreements against Section 331 thresholds.
• Transparency in Reporting: Publicly disclose funding sources to preempt OSP-style audits.

Government entities can leverage such models to modernize operations without budget strain, as seen in SML’s deployment of revenue assurance technologies.

Points of Caution

While SML’s position appears robust, stakeholders should note:

• Misrepresentation Risks: OSP reports can influence public perception; proactive communication, like Boyuo’s, is essential.
• Audit Preparedness: Even self-funded projects may face scrutiny—retain invoices for duties exceeding GHS 500 million.
• Termination Clauses: Boyuo acknowledged potential contract ends but affirmed SML’s readiness to absorb costs.
• National Practice Variability: What aligns with current norms may evolve with policy changes.

Avoid assumptions about government backing in PPPs; always verify liability clauses.

Comparison

Contrasting OSP claims with SML’s defense reveals stark differences:

This table underscores how SML’s evidence-based rebuttal shifts the narrative from liability concerns to a model of private-sector innovation.

Legal Implications

The SML case exemplifies PFMA compliance in practice. Section 331 protects public finances by gating high-risk commitments, but self-funded arrangements like SML’s fall outside its scope. Legally, this validates the contract without ratification, provided no hidden liabilities exist.

Broader PFMA Applications

Similar to energy or infrastructure PPPs, revenue assurance contracts must demonstrate:

• No sovereign guarantees.
• Fees from future revenues, not appropriations.
• Private asset ownership and risk-bearing.

Non-compliance could invite judicial review, but SML’s structure mitigates this. OSP investigations underscore the need for empirical audits over presumptions.

Conclusion

Cephas Boyuo’s revelations affirm SML’s pivotal role in Ghana’s revenue optimization, fully funded from own assets with no taxpayer burden. By dismantling OSP misconceptions on PFMA Section 331, this positions the SML-GRA partnership as a benchmark for efficient public contracts. As debates continue, transparency and legal clarity remain vital for trust in governance. Stakeholders should monitor developments for lessons in fiscal prudence and private investment.

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