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Mahama Orders Immediate Termination of All SML Contracts Following OSP Findings

Abilla Isaac Azumah

Abilla Isaac Azumah

Friday, 31 October 2025 at 19:52
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Accra, Friday, 31 October 2025 — President John Dramani Mahama has ordered the immediate termination of all contracts between the Government of Ghana and Strategic Mobilisation Ghana Limited (SML), following recommendations from the Office of the Special Prosecutor (OSP).

The directive, issued through the Secretary to the President, Dr Callistus Mahama, and addressed to the Minister for Finance, Dr Cassiel Ato Forson, instructed that all agreements involving SML be cancelled in accordance with the law.

According to the statement, the move forms part of the administration’s renewed commitment to transparency and the prudent management of public resources.

OSP’s Investigation and Findings

The order follows the conclusion of an extensive investigation by the OSP into SML’s revenue assurance contracts with the Ghana Revenue Authority (GRA).

The OSP’s report, released earlier this week, found that the SML contracts lacked proper justification and were secured through “self-serving official sponsorship and promotion based on false and unverified claims”.

It further revealed that the contracts breached key provisions of the Public Financial Management Act, 2016 (Act 921) and the Public Procurement Act, 2003 (Act 663).

The Special Prosecutor, Kissi Agyebeng, described the arrangements as “a carefully orchestrated scheme of convenience”, claiming that payments to SML were made on an automatic basis without verification of performance.

The OSP concluded that these actions exposed the state to significant financial loss and recommended the full cancellation of the agreements, as well as possible prosecution of public officials implicated in the deal.

Details of the Contracts

The consolidated SML contract covered revenue assurance services across three major sectors — downstream petroleum, upstream petroleum, and mining — with a total value exceeding US$500 million for the first five years.

It was structured to allow for automatic renewal for another five years, a clause the OSP described as “financially injurious” to the state.

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Abilla Isaac Azumah

Abilla Isaac Azumah