“CBOD CEO: No Need for GRA-SML Deal, Govt Already Has Robust Monitoring Systems”

The CEO of the Chamber of Bulk Oil Distributors, Dr. Patrick Ofori, has expressed concerns over the resumption of Strategic Mobilisation Limited (SML) in monitoring operations in Ghana’s downstream petroleum sector.

According to Dr. Ofori, existing mechanisms are already in place to ensure effective monitoring and mobilization of government revenue from the sector. The Ghana Revenue Authority (GRA) and the Ministry of Energy recently gave SML the green light to resume its monitoring operations, effective June 14, 2024.

The directive is in accordance with President Akufo-Addo’s directives on the KPMG report, which aims to ensure accurate, reliable, and timely monitoring services to support revenue assurance. However, Dr. Ofori believes that the resumption of SML’s operations is unnecessary, as there are already multiple mechanisms in place to protect government revenue.

These mechanisms include the National Petroleum Authority’s (NPA) downstream regulation, the Electronic Revenue Data Management System (ERDMS), the Ghana Revenue Authority’s (GRA) Integrated Customs Management System (ICUMS), and tracking systems for fuel classification and categorization.

Additionally, the petroleum seal system ensures that products are protected and accounted for during transportation from terminals to filling stations. Dr. Ofori argues that if these mechanisms are not assuring the government of the required revenue, then there must be a problem that needs to be investigated further.

The Chamber of Bulk Oil Distributors is calling for a review of the decision to resume SML’s operations, citing potential conflicts and duplication of efforts. The issue has sparked debate in the industry, with some stakeholders supporting the move to ensure maximum revenue assurance, while others share Dr. Ofori’s concerns about the necessity of SML’s involvement.