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Groups Sue Government for GH₵1bn SML Payment

Story Highlights
  • Five NGOs seek to recover over GH₵1 billion paid to SML.
  • KPMG found issues with approvals for the SML contract.
  • Lawsuit aims to ensure proper use of public funds.
  • NGOs cite violations of procurement laws.

Five non-governmental organizations (NGOs) have filed a lawsuit against the government to recover over GH₵1 billion paid to Strategic Mobilisation Limited (SML). The NGOs are questioning the legality of the payment and demanding accountability for the expenditure of public funds.

Earlier this year, President Nana Addo Dankwa Akufo-Addo instructed KPMG to audit the transaction between the Ghana Revenue Authority (GRA) and SML. The contract aimed to enhance revenue assurance in the downstream petroleum sector, upstream petroleum production, and the minerals and metals resources value chain.

The KPMG audit report uncovered several irregularities, including the GRA’s failure to obtain necessary approvals from the Public Procurement Authority (PPA) and Parliament before signing the contract with SML. These findings have sparked concerns about the transparency and legality of the agreement.

In response to these issues, the Centre for Democratic Development (CDD-Ghana), Africa Centre for Energy Policy (ACEP), Ghana Anti-Corruption Coalition (GACC), Human Rights and Governance Centre, and the Media Foundation for West Africa (MFWA) have united to file a lawsuit. The NGOs aim to recover the funds and ensure proper oversight of public contracts.

Sulemana Braimah, Executive Director of MFWA, stressed in an interview on Monday, August 26, that the lawsuit is driven by a commitment to protect state resources rather than personal motives. He emphasized the importance of holding public institutions accountable for their financial actions.

Braimah explained that the lawsuit is based on findings from the KPMG report, which highlighted breaches of public procurement laws and parliamentary oversight. The NGOs argue that, given these breaches, the misappropriated funds should be recovered and returned to the state to uphold legal and financial integrity.

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