Mahama terminates SML contracts after OSP investigation – Life Pulse Daily

Introduction

President John Mahama has taken decisive action to terminate all government contracts with Strategic Mobilisation Ghana Limited (SML), following the conclusion of a comprehensive investigation by the Office of the Special Prosecutor (OSP). This high-profile decision underscores the administration’s firm commitment to transparency, accountability, and the responsible management of public resources.

The termination directive, formally communicated through a presidential letter signed by Dr. Callistus Mahama, Secretary to the President, and addressed to Finance Minister Dr. Cassiel Ato Forson, marks a pivotal moment in Ghana’s ongoing anti-corruption efforts. The move comes after months of intense scrutiny over SML’s involvement in government IT procurement deals, which became the subject of a formal corruption probe.

As one of the most significant contract cancellations in recent Ghanaian political history, this development has far-reaching implications for public procurement reform, corporate accountability, and institutional integrity. This article provides a comprehensive analysis of the SML contract termination, its background, legal foundations, and broader impact on governance in Ghana.

Analysis

Background of the SML Contracts

Strategic Mobilisation Ghana Limited (SML) had been engaged in multiple government contracts, primarily in the information technology sector. These agreements were initially designed to support digital transformation initiatives across various ministries, departments, and agencies (MDAs). However, concerns began to emerge regarding the procurement process, contract valuation, and the company’s compliance with public financial management regulations.

The contracts under review were reportedly worth millions of Ghana cedis and involved the supply of IT equipment, software solutions, and technical support services. While the government initially defended the engagements as necessary for national development, civil society organizations and anti-corruption watchdogs raised alarms about potential irregularities in the bidding and award processes.

Role of the Office of the Special Prosecutor (OSP)

The Office of the Special Prosecutor, established in 2018 under the Office of the Special Prosecutor Act (Act 959), is mandated to investigate and prosecute corruption cases involving public officials and entities. The OSP’s investigation into SML contracts focused on several key areas:

• Procedural compliance with the Public Procurement Act (Act 663)
• Due diligence in vendor selection
• Contractual transparency and value for money
• Potential conflicts of interest

The investigation reportedly involved document reviews, interviews with procurement officers, and forensic analysis of financial transactions. While the full investigative report has not been made public, the findings were sufficient to prompt presidential intervention.

Presidential Directive and Legal Basis

President Mahama’s termination order is grounded in several legal frameworks, including:

• The Executive Instruments Act (Act 699)
• The Public Procurement Act (Act 663)
• The Office of the Special Prosecutor Act (Act 959)
• Presidential powers under the 1992 Constitution

The directive instructs the Ministry of Finance to ensure that all existing agreements with SML are immediately suspended and formally terminated in accordance with established financial regulations. This includes initiating exit procedures, settling legitimate dues, and documenting lessons learned for future procurement exercises.

Summary

In a landmark move to uphold integrity in public procurement, President John Mahama has ordered the immediate termination of all government contracts with Strategic Mobilisation Ghana Limited. The decision follows a thorough investigation by the Office of the Special Prosecutor, which uncovered significant concerns regarding the legality and transparency of the contractual arrangements.

The termination affects multiple IT-related contracts across various government agencies and represents one of the most visible applications of anti-corruption measures in Ghana’s recent history. The Finance Minister has been tasked with overseeing the termination process to ensure compliance with financial regulations and minimize operational disruptions.

Key Points

Practical Advice

For Government Agencies

Ministries, departments, and agencies should:

• Review all active contracts for compliance with procurement laws
• Strengthen internal audit mechanisms
• Implement robust vendor due diligence processes
• Ensure transparent documentation of all procurement activities
• Report suspicious activities to the OSP or CHRAJ

For Private Sector Companies

Businesses engaging with government should:

• Maintain complete transparency in bidding processes
• Ensure all documentation is accurate and verifiable
• Avoid conflicts of interest in procurement engagements
• Adopt corporate governance best practices
• Cooperate fully with investigative authorities when required

For Citizens and Watchdog Organizations

The public can contribute by:

• Monitoring government procurement activities
• Reporting suspected corruption to appropriate authorities
• Advocating for stronger transparency measures
• Supporting independent investigative journalism
• Participating in public accountability forums

Points of Caution

• Legal Challenges: SML may challenge the termination in court, potentially delaying the process
• Service Disruption: Immediate termination could affect critical IT services across government
• Contractual Obligations: Government must fulfill legitimate financial commitments during termination
• Reputational Impact: Other companies may face scrutiny due to association with SML
• Political Considerations: Decision may be subject to political interpretation and debate

Comparison

SML Case vs. Previous Procurement Scandals

The SML contract termination can be compared to other notable procurement-related actions in Ghana’s history:

Unlike previous cases that resulted in policy reviews or investigations, the SML decision represents the most direct action taken against a contractor under corruption suspicion.

Legal Implications

Contract Law Considerations

The termination raises several legal questions under Ghanaian contract law:

• Breach Claims: SML may argue that termination constitutes wrongful termination
• Compensation: Company may seek damages for lost revenue
• Judicial Review: Decision may be subject to High Court scrutiny

Anti-Corruption Framework

The action reinforces key anti-corruption statutes:

• Office of the Special Prosecutor Act (Act 959): Provides investigative authority
• Public Procurement Act (Act 663): Governs procurement conduct
• Right to Information Act (Act 922): Supports transparency demands

International Standards

The decision aligns Ghana with international best practices in public procurement integrity, including UN Convention against Corruption (UNCAC) obligations and African Union anti-corruption frameworks.

Conclusion

President John Mahama’s termination of SML contracts represents a watershed moment in Ghana’s fight against corruption and procurement malpractice. By acting decisively on the OSP investigation findings, the administration has sent a clear message that accountability and transparency are non-negotiable in public service delivery.

While the decision may face legal and operational challenges, it establishes an important precedent for future government contracting. The move demonstrates that no entity is above scrutiny when public funds are involved, reinforcing citizen trust in democratic institutions.

For lasting impact, this action should be complemented by systemic reforms, including automated procurement monitoring systems, stronger whistleblower protections, and enhanced capacity for investigative agencies. The SML case should serve not just as a punitive measure, but as a catalyst for transforming Ghana’s public financial management landscape.

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