my Radio G-Live GRA Instructs SML to Resume Monitoring Operations in Downstream Petroleum Sector
Written by GliveRadio Accra on June 21, 2024
The Ghana Revenue Authority (GRA) has instructed Strategic Mobilisation Limited (SML) to resume monitoring operations in the Downstream Petroleum sector starting from June 14, 2024.
In a statement dated June 12, 2024, addressed to Bulk Oil Distributors, GRA stated that this directive aligns with President Akufo-Addo’s directives based on the KPMG report.
The GRA’s statement reads, “We hereby inform you that Strategic Mobilisation Limited (SML) has been directed to recommence its monitoring operations of the Downstream Petroleum sector effective June 14, 2024, in accordance with Presidential Directives based on the KPMG report.”
“SML is expected to ensure that all systems are fully operational and compliant with relevant standards and regulations, delivering accurate, reliable, and timely monitoring services to support our revenue assurance.
The Bulk Oil Distributors are urged to collaborate effectively to ensure a successful resumption of the monitoring exercise.”
However, the Ministry of Energy, in a statement dated June 20, announced that in partnership with the Ghana Standards Authority (GSA), the Ministry of Trade, Industries, and other pertinent stakeholders, new standards for measurements in the oil and gas sector have been formulated based on the Singaporean Standard.
In light of this development, the Energy Ministry has advised individuals and entities conducting measurements for revenue assurance in the oil and gas sector to adhere to these updated standards.
“The Ghana Standards Authority (GSA), in conjunction with the Ministry of Energy, Ministry of Trade and Industries, and other relevant stakeholders, has developed new standards for measurements in the oil and gas sector, incorporating the Coriolis mass flow metering system based on the Singaporean Standard.”
Subsequently, the Minister for Trade and Industry, in accordance with Section 13 of the Ghana Standards Authority Act, 2022 (Act 1078), has officially enforced these standards as mandatory. Therefore, it is imperative to clarify that all individuals and entities engaged in measurements for revenue assurance in the oil and gas sector must adhere strictly to these updated standards.”
President Akufo-Addo commissioned KPMG on January 2 to conduct an audit of the contract between the GRA and SML.
Upon submission of its report to the president, KPMG disclosed that SML has received a total of GH¢1,061,054,778.00 from 2018 to the present.
According to the report, GH¢454,860,396.27 (gross) was paid to SML for transaction audit and external price verification payments, while GH¢945,342,007.29 (gross) was allocated for downstream petroleum measurement payments.
The KPMG report, tasked with scrutinizing the terms and implications of the agreement, provides a comprehensive analysis of the partnership aimed at enhancing revenue collection in Ghana.
The contract with SML was designed to leverage advanced technological solutions to streamline tax collection processes, mitigate losses, and enhance overall efficiency in GRA operations.
