The dragnet has tightened! The Office of the Special Prosecutor (OSP) has clapped handcuffs on Rev. Dr. Ammishaddai Owusu-Amoah, the former Commissioner General of the Ghana Revenue Authority (GRA), and two other ex-GRA bigwigs.
Their alleged crime? Deep involvement in the scandalous dealings of Strategic Mobilisation Limited (SML), a company that has raked in a staggering $141 million from state coffers by the end of 2023, often in defiance of procurement laws.
The trio found themselves cooling their heels in National Intelligence Bureau cells after failing to meet bail conditions following intense questioning by the OSP.
This comes as the Special Prosecutor continues his relentless probe into the SML saga, a scandal so murky it even led to the OSP declaring former Finance Minister Ken Ofori-Atta wanted for suspected corruption.
Sources within the OSP have exclusively revealed the identities of the other two individuals in custody. They are Dr. Isaac Crentsil, a former Commissioner of Customs, and Christian Tetteh Sottie, who served as a technical advisor to the Commissioner General of the GRA.
Adding another layer of intrigue to this unfolding drama, it appears some of these former GRA officials have seamlessly transitioned from public service into the very company at the heart of the scandal.
Dr. Isaac Crentsil, who was the GRA’s Commissioner of Customs when the initial SML contract was inked, now serves as the General Manager at SML.
His career trajectory includes stints as Commissioner of Customs from 2017 to 2019, followed by a secondment to the Ministry of Finance as a technical advisor until his retirement from GRA in September 2022.
Similarly, Christian Tetteh Sottie, who advised the GRA Commissioner General during the SML contract period, now holds the prominent position of Managing Director of SML.
And the connections don’t stop there: Philip Mensah, a former head of legal at the GRA, is now the legal advisor for SML.
The roots of the SML scandal stretch back to the tenure of former GRA Commissioner General, Emmanuel Kofi Nti. It was under his watch that the SML deal first began to take shape, despite repeated red flags from the Public Procurement Authority (PPA).
On three separate occasions, Mr. Nti sought PPA approval to engage Strategic Mobilisation Enhancement Limited (SMEL) – the precursor to SML – for audit and revenue assurance services using the single-source procurement method.
Each time, the PPA flatly rejected the request, citing SMEL’s demonstrable lack of capacity and proven track record. Yet, despite these clear denials, the GRA, under Nti, proceeded to award contracts without the necessary PPA approval.
The plot thickened significantly under Rev. Dr. Ammishaddai Owusu-Amoah, who succeeded Kofi Nti. It was during his tenure that the SML contracts, initially signed in blatant disregard for PPA laws, were ratified.
More alarmingly, it was under his leadership, and allegedly on the direct orders of Ken Ofori-Atta, that the consolidated SML contract of 2023 was forged.
This expanded contract ballooned SML’s reach beyond its questionable operations in the downstream oil sector to encompass the lucrative mining and upstream petroleum sectors.
This single deal alone was set to rake in over $100 million annually for SML, for an initial five-year period, renewable for another five – potentially netting the company over $500 million in its first five years alone.
Under this exorbitant arrangement, SML is entitled to a percentage of revenue from every litre of petroleum product sold in Ghana, a fixed percentage of revenue from every barrel of oil produced, and a fixed percentage of revenue from every ounce of gold mined.
This starkly contradicts claims by SML and its defenders that the company is paid based on “recoveries” – a notion thoroughly debunked by the fact that the company has yet to make any verifiable recoveries since it began operations.
Investigations, Suspensions, and Unfulfilled Promises
The scandalous nature of the SML contracts was first brought to light by The Fourth Estate investigations, prompting President Akufo-Addo to commission a report by KPMG.
The KPMG report, notably, confirmed that SML played no role in the reported increase in volumes or revenue in the downstream sector during its operations.
Following these revelations, the upstream and mining sector contracts with SML have remained suspended.
The government also scrapped the external price verification and transaction audit services at the port, a function the KPMG report confirmed was already being effectively carried out by the GRA.
However, despite the outcry and ongoing investigations, SML surprisingly resumed its downstream operations in late June 2024.
This development has reignited public debate and scrutiny, especially in light of past promises by the then-flagbearer of the NDC, John Mahama, who in 2024 vowed to terminate the SML deal, labeling it a blatant “fleecing of the state.”
Six months into his presidency, however, Mr. Mahama has yet to take any decisive action on the controversial contract.
The arrests of the former GRA officials signal a new, intense phase in the SML investigation, raising hopes that justice will finally be served in this multi-million dollar scandal.
By Prince Ahenkorah