Mahama orders immediate termination of controversial SML contracts

President John Dramani Mahama has ordered the immediate termination of all contracts between the government and Strategic Mobilisation Ghana Limited (SML) following a damning report by the Office of the Special Prosecutor (OSP).

The directive, confirmed by Today.com.gh’s sources at the Presidency, was communicated through a letter signed by Dr. Callistus Mahama, Executive Secretary to the President, and addressed to the Minister of Finance.

The instruction marks a decisive move to end one of the most controversial revenue assurance deals in Ghana’s recent history.

“Following the conclusion of the investigation conducted by the Office of the Special Prosecutor into the contracts awarded to Strategic Mobilisation Ghana Limited, I have been directed by His Excellency, the President of the Republic, to request that you take immediate steps to terminate all existing SML-related contracts forthwith,” the letter stated.

The SML contracts were originally signed with the Ghana Revenue Authority (GRA) and the Ministry of Finance to provide revenue assurance in the downstream petroleum sector.

The agreement was later expanded to cover the upstream petroleum and mining value chains.

However, the contracts sparked nationwide controversy after investigative reports alleged massive overvaluation, questionable expertise, and a lack of competitive procurement.

Critics argued that the deal, which could have cost the state over $100 million annually, was opaque and unnecessary.

The OSP’s investigation into the matter revealed severe irregularities and concluded that there was “no genuine need” for the contract. The report described the agreement as “a masterful and mischievously crafted scheme” that failed to deliver value for money.

According to the OSP, over GH¢1.4 billion had been paid to SML without proper oversight, raising serious concerns about accountability and due diligence.

The investigation also cited the involvement of the former Minister of Finance, Ken Ofori-Atta, in the controversial arrangement.

President Mahama’s swift directive effectively ends the contract and indicates his administration’s intention to restore public confidence in the management of state revenue systems.

Government insiders acknowledge the seriousness of the OSP’s findings in relation to SML.

The Finance Ministry is expected to begin the formal process of terminating all SML-related agreements immediately, with further audits likely to follow.

Meanwhile, the OSP continues to pursue Former Finance Minister, Mr. Ofori-Atta who remains outside of the jurisdiction despite repeated attempts to get him to return to the country.