The contract between Strategic Mobilisation Ghana Limited (SML) and the Ghana Revenue Authority (GRA) has yielded positive results for the country’s revenue, according to details emerging from the GRA.
Documents from the GRA, according to reports, show that revenue has surged by GH¢12,981,376,688.00 since the contract’s implementation, indicating its effectiveness in boosting the country’s financial interests.
However, amidst these positive outcomes, SML has taken legal action against a media outlet for releasing “The GH¢3bn Lie Documentary.”
In a lawsuit filed on Thursday, February 15, SML claims that the publication has damaged its reputation irreparably, leading to negative consequences for its operations.
SML is seeking ¢10 million in compensation, including one million for defamation and nine million for exemplary damages, citing reckless and malicious reporting.
“Plaintiff says that the onslaught of backlash from the public which has arisen from the Defendants’ false reportage has adversely impacted Plaintiff’s operations.”
“Plaintiff says that although it published rejoinders to the Defendants’ false reportage, the Defendants have failed and/or refused to retract and apologise to the plaintiff for the false information they have consistently peddled.”
Furthermore, they are requesting a perpetual injunction against the publication of further defamatory material, a retraction and apology, and any other orders deemed appropriate by the High Court.
In a December 2023 investigative report, The Fourth Estate implicated Strategic Mobilisation Ghana Limited (SML), the Ghana Revenue Authority (GRA), and the Ministry of Finance.
The report alleged that the GRA had granted SML a 10-year contract with an annual payment of $100 million, raising concerns about possible irregularities.
SML refuted the claim, stating that it had a five-year contract instead. The GRA, in a statement on December 20, 2023, maintained that proper procurement procedures were followed.
On January 3, 2024, SML welcomed President Akufo-Addo’s directive to suspend its ongoing revenue assurance operations and undergo an audit of its contract with the GRA and the Ministry of Finance. President Akufo-Addo appointed KPMG, an audit, tax, and advisory services firm, to conduct the immediate audit.
SML expressed confidence that the audit would provide a clear and accurate depiction of its operations. However, President Akufo-Addo extended the deadline for KPMG to complete its audit following its request.
As a result, KPMG is now expected to submit its report on Friday, February 23.
Below is the data said to have been provided by the GRA.
In the course of a recent meeting with the Commissioner-General of the Ghana Revenue Authority (GRA), Finance Minister Dr. Mohammed Amin Adam expressed apprehension regarding the persistently high levels of corruption perceptions at Ghana’s ports.
Dr. Amin Adam highlighted ongoing revenue losses attributed to the activities of clearing agents, shipping companies, and certain customs officials, underscoring the urgency of addressing these issues.
Assuming office following President Akufo-Addo’s ministerial reshuffle on February 14, Dr. Amin Adam emphasized the crucial need to close existing loopholes to optimize revenue generation for national development.
In his visit to the GRA on Monday, February 19, Dr. Amin Adam stressed the importance of collaborative efforts to improve transparency and efficiency in revenue collection processes.
“It is also time to roll out and expand the E-VAT mechanism, despite whatever challenges exist. We saw the potential collections from the Pilot Phase. We cannot continue to prolong and delay the implementation, especially under the programme.
“We must also work with renewed urgency towards reducing human contact in the revenue processes and introduce a faceless assessment system. This is a sure way to give taxpayers a great experience and boost revenue mobilisation.”
“Commissioner-General, as you may be aware, the perception of corruption in the ports of trade and entry remains very high. I have seen reports that tend to confirm some of these perceptions.
“And I know you all have received similar reports. We continue to lose revenue through the actions and inactions of clearing agents, shipping companies, and some of our own customs officials.”
Dr. Mohammed Amin Adam further emphasized that Ghana faces significant challenges if it does not fulfill certain tax obligations necessary to meet targets set by the International Monetary Fund.
He urged the Ghana Revenue Authority to take proactive measures to address any deficiencies in revenue generation processes.
“The Barekese and Owabi WTPs as well as the Achiase Booster Station have been experiencing power outages in the last few weeks. This has made it difficult to produce and transmit potable water to our cherished customers and the public,” said a statement from the company.
The water company says its management has notified the ECG of the challenges, as it “counts on ECG to improve power supply to all GWL installations in the region to enable GWL to serve the metropolis with the constant flow of water. Management regrets the inconvenience the challenge may have caused”.
Finance Minister-designate, Dr. Mohammed Amin Adam, has cautioned that Ghana could face serious challenges if it does not meet certain tax obligations required to meet targets set by the International Monetary Fund (IMF).
During an engagement with the Commissioners of the Authority, Dr. Amin Adam emphasized that revenue mobilization is a critical priority for the government.
Despite this, he commended the GRA for surpassing the revenue target for 2023.
“Commissioner-General, this institution continues to perform admirably well. Last year, you managed to exceed the revenue target. Although the public seems to question the framework for target setting, I congratulate you on this achievement.”
“However, this achievement also reveals the depth of potential to be optimised. This view is also shared by the wider public. Achieving and exceeding the targets is also critical to the success of the IMF-Extended Credit Facility (ECF) Programme. We cannot afford to miss our commitments programme”, he stressed.
Dr. Mohammed Amin Adam emphasized the crucial role of the Ghana Revenue Authority (GRA) in supporting Ghana’s IMF program for 2024.
“Commissioner-General, I take this opportunity to reiterate to you and your team the three key commitments you made under the programme for 2024: cleaning of the GRA taxpayer register by end-June 2024, complete data migration from all existing portals to the ITAS, operationalize the major modules (registration, returns filing and payments) in the system (and processes needed to be completed prior to that) by end December 2024”, he added.
The finance minister also announced plans to collaborate with the GRA through a structured framework to surpass the GH¢145 billion revenue target set in the 2024 Budget.
The Volta Regional branch of the Association of Building and Civil Engineering Contractors of Ghana (ABCECG) has submitted a petition to the Ghana Revenue Authority (GRA), has urged a reconsideration of the taxing system imposed on construction firms engaged in government-contracted public projects.
During a meeting with the Volta Region GRA leadership in Ho, the ABCECG presented their concerns.
The Volta Regional Chairman of ABCECG, Dr. Emmanuel Afetorgbor, highlighted issues such as GRA’s failure to credit members despite recorded credits and the imposition of debits based on “desktop assessments.”
Dr. Afetorgbor raised objections to substantial penal charges for delayed filing of returns and urged the GRA to review this decision.
He also sought clarity on the criteria used for assessing tax obligations and questioned why construction firms faced penalties when government entities failed to remit withheld taxes deducted at the payment source.
“Contractors suffer non/delay payment for works done for the government for several years and when these payments are made, the Government doesn’t pay interest on the said amount. It is very unfair for the government to expect tax penalties and interests when clearly the contractor is not to blame”, he said.
He emphasized the unfairness of imposing tax penalties on contractors who experience delays in government payments for completed projects, especially when the government does not pay interest on overdue amounts.
Dr. Afetorgbor criticized situations where GRA officials humiliate association members for delayed tax payments, asserting that contractors should not be penalized when government agencies fail to remit withheld tax amounts.
“Taxes are withheld at the time of payment and when agencies fail to pay the withheld amounts to GRA, the expectation is for the contractor to further use his resources to chase these payments. GRA doesn’t penalize these establishments for not paying withheld tax amounts to the credit of the contractors.”
“GRA doesn’t seem to want to listen and tailor tax collection to recent happenings in the country. As one of the major tax-paying sectors of the economy, GRA needs to constantly engage and educate contractors on changes in their tax collections tactics and also seek input towards effectiveness”, he said.
Calling for immediate redress, Dr. Afetorgbor emphasized the need for collaboration between the GRA and contractors to ensure business sustainability.
He urged the GRA to listen to the concerns of the tax-paying construction sector, engage in continuous communication, and adapt tax collection strategies to the evolving economic landscape.
Newly appointed Finance Minister, Dr. Mohammed Amin Adam, has pledged to facilitate the implementation of a faceless assessment system by theGhana Revenue Authority (GRA).
He emphasised that this anonymous evaluation procedure will bolster the efficiency of revenue collection, thereby fortifying the nation’s financial standing and facilitating the attainment of its expenditure objectives.
Speaking in an interview on the Citi Breakfast Show, Adam Amin said, “We have heard that people are being harassed. All these are going to be streamlined so that you have a friendly approach and we will also get the GRA to introduce a faceless assessment system to ensure that we maximise revenue collection…and to be able to meet our expenditure target.”
Amin Adam also vowed to ‘aggressively’ pursue revenue collection by taking the initial step to visit various market areas and revenue centres to motivate GRA personnel further to keep up their revenue collection efforts.
“Revenue collection will be pursued aggressively, So you are going to see me moving around the revenue centres, the ports, the airport and the market areas to encourage the staff of GRA to collect more revenue but also to institute a friendly approach to collecting revenue,” he noted. Following a reshuffle by President Nana Addo Dankwa Akufo-Addo on February 14, 2024, Dr. Mohammed Amin Adam assumed the role of Finance Minister.
He has committed to adhering to the government’s policies and initiatives as delineated in the 2024 budget.
Finance Minister-designate Mohammed Amin Adam has affirmed his commitment to actively pursue revenue mobilization, aiming to strengthen the country’s finances to meet expenditure goals.
Dr. Amin Adam emphasized his dedication to collaborating closely with revenue mobilization agencies to enhance the country’s revenue streams.
During an interview with Citi FM on Thursday, February 15, he highlighted the significance of establishing robust financial foundations to address economic challenges faced by citizens and ensure sustainable development.
Adam stated, “Revenue collection will be pursued aggressively. So you are going to see me moving around the revenue centers, the ports, the airport, and the market areas to encourage the staff of GRA to collect more revenue but also to institute a friendly approach to collecting revenue.”
He added, “We have heard that people are being harassed; all these are going to be streamlined so that you have a friendly approach, and also we will get the GRA to introduce a faceless assessment system to ensure that we maximize revenue collection…and to be able to meet our expenditure target.”
President Akufo-Addo nominated Dr. Mohammed Amin Adam as the new Finance Minister, succeeding Ken Ofori-Atta, who served in the position for seven years. The announcement was part of the latest ministerial reshuffle released on Wednesday, February 14.
Despite facing challenges and calls for dismissal from some members of Ghana’s Parliament, Ken Ofori-Atta held the position as Ghana’s longest-serving finance minister. Calls for his resignation were made by around 80 NPP MPs on October 25, 2022, and echoed by the NDC parliamentary caucus in February 2023. However, President Akufo-Addo rejected these calls, urging Parliament to wait until discussions with the IMF concluded.
Award-winning Gospel musician, Diana Hamilton, has voiced her discontent with Ghana’s taxation system for events during an appearance on the United Showbiz on Saturday, February 10, 2024.
Hamilton highlighted her experience of organizing events both in the UK and Ghana, noting a significant disparity in how the two countries tax event organizers.
She noted that in the UK, the tax system is very conducive and feasible since she is only taxed on her profits, and should she run at a loss, there is no tax.
“I have the privilege of hosting events in the UK and Ghana. If I hold an event in the UK, all the monies accrued will go into my account. I make all my withdrawals, and at the end of the year, I get taxed on my profits. And if I make a loss, I do not get taxed.
However, that is not the same in Ghana. She bemoaned the ineffectiveness of officials of the Ghana Revenue Authority (GRA) whom she says fail to properly apply taxes.
“But in Ghana, when I am hosting an event, the GRA officials won’t check anything; all they do is stand at the entrance and count the number of people entering the hall and they tax you. With or without complimentary tickets, as long as anyone enters the hall, they will count everyone and tax you on that without taking into consideration the venue, cost of production, and all that.”
Diana is calling for decisive measures to ensure a more respectable and competent tax system in Ghana to save businesses.
“I’ve had the privilege of doing both, and I hope we look into this and a solution will be found,” she said.
The Tema Metropolitan Chief Executive (MCE), Yohane Amarh Ashitey, has commended Vice President Dr Mahamudu Bawumia for his ambitious vision outlined during a recent address, expressing astonishment at the transformative promises made.
In an exclusive interview on the sidelines of Dr Bawumia‘s address titled “Ghana’s Next Chapter” on Wednesday, February 7, 2024, Amarh Ashitey lauded the Vice President’s pledges, describing them as both shocking and wonderful.
“I mean, this is Dr. Bawumia and I knew we were going to get an inspiring vision statement from him, but even I must admit that what he delivered is mind blowing. Far beyond inspiration, Dr. Bawumia gave us real hope that the average Ghanaian can trust in”, the MCE said in an exclusive interview on the sidelines of the address.
Among the key announcements made by Vice President Bawumia was the intention to scrap the controversial e-levy, which has burdened the less privileged in society by taxing their means of transferring money. Additionally, he pledged to reform and refocus the Ghana Revenue Authority (GRA) to broaden the tax net, addressing the current imbalance where only a few taxpayers shoulder the burden of the populace.
Dr. Bawumia criticized the archaic tax regime inherited from colonial masters, highlighting existing loopholes that have resulted in substantial uncollected tax revenue, amounting to approximately GHC24 billion. He emphasized that closing these loopholes would alleviate the need for future IMF bailouts.
The Vice President further announced plans to abolish the proposed 15% tax on electricity, emission tax, and the betting tax, which has been a source of discontent among Ghanaian youth.
Despite criticisms from some quarters, particularly the opposition National Democratic Congress (NDC), accusing Dr. Bawumia of populism, Amarh Ashitey defended the Vice President, asserting that his actions demonstrate independence from the current government’s policies.
“We are seeing a vintage Dr. Bawumia who disagreed with many of the policies that were adopted by cabinet now asserting his own point of view on these issues,” Amarh Ashitey remarked. He added that Dr. Bawumia’s decision to abolish contentious taxes reflects his genuine commitment to the welfare of Ghanaians.
The MCE concluded by stating that Dr. Bawumia’s visionary plans signal a new era of leadership characterized by bold decision-making and a focus on addressing the needs of ordinary citizens.
The Ghana Revenue Authority (GRA) has dismissed claims suggesting it is auctioning agrochemicals, fertilizers, and related items due to COCOBOD’s alleged failure to pay duties.
The GRA labeled such reports as deceptive and urged the public to disregard them.
In an official statement, the GRA clarified that the agrochemicals and other items were initially imported by COCOBOD, overstayed at the State Warehouse, and were consequently placed on the Uncleared Cargo List (UCL).
“Management of the Ghana Revenue Authority (GRA) has sighted a publication in the Herald newspaper on “GRA auctioning COCOBOD’s chemicals, fertilizers, others” dated 2nd February 2024. “Management of the Ghana Revenue Authority (GRA) has sighted a publication in the Herald newspaper on “GRA auctioning COCOBOD’s chemicals, fertilizers, others” dated 2nd February 2024.
“The said article states that Ghana Cocoa Board (COCOBOD) is unable to pay import duties on some agrochemicals, fertilizers and implements to be used in enhancement of cocoa farming and this has led to an auction of these items by GRA resulting in dire implications to the cocoa season.
“Management would like to use this opportunity to state that, this article is disingenuous and misleading and seeks to draw conclusions not founded on facts.”Management would like to use this opportunity to state that, this article is disingenuous and misleading and seeks to draw conclusions not founded on facts,” it added.
Despite being gazetted as required by law, these essential commodities vital for COCOBOD’s operations were not assigned to another entity.
Acknowledging COCOBOD’s crucial role in Ghana’s economy, the GRA carefully considered their request and returned the items to them, without auctioning.
The statement emphasized that COCOBOD has duly paid the necessary duties on the agrochemicals, emphasizing that no COCOBOD agro product has undergone auction.
GRA urged the public to dismiss the inaccurate publication, emphasizing its commitment to fair application of tax laws while recognizing COCOBOD’s significant contribution to the country’s development.
The GRA assured the public of its dedication to revenue mobilization with integrity, fairness, and professionalism.
Below is the GRA’s full statement.
Management of the Ghana Revenue Authority (GRA) has sighted a publication in the Herald newspaper on “GRA auctioning COCOBOD’s chemicals, fertilizers, others” dated 2nd February 2024. The said article states that Ghana Cocoa Board (COCOBOD) is unable to pay import duties on some agrochemicals, fertilizers and implements to be used in enhancement of cocoa farming and this has led to an auction of these items by GRA resulting in dire implications to the cocoa season.
Management would like to use this opportunity to state that, this article is disingenuous and misleading and seeks to draw conclusions not founded on facts.
The facts are that in April and May 2023, some agrochemicals and other items were imported into the country by COCOBOD. These items overstayed at the State Warehouse and as a result were sent to the Uncleared Cargo List (UCL). Thereafter, the items were gazetted as the law demands. However, because the agro products are essential commodities needed for effective running of the operations of COCOBOD, they were not allocated to a different entity. As such, although the containers were under UCL, GRA carefully considered the request from COCOBOD and the key role it plays in the economy of Ghana and restored the items to them.
COCOBOD has therefore paid the required duties on the agro chemicals. No agro product of COCOBOD has therefore been auctioned.
We therefore entreat the general public to disregard this false publication and to verify any such information before publication. We further state that GRA recognizes the contribution of COCOBOD to the development of the country and will therefore not carry out any action that is detrimental to its operations while at the same time ensuring that the Tax laws are applied fairly.
Management of GRA wishes to assure the public that we are committed to our mandate of revenue mobilization with integrity, fairness and professionalism.
Ghana Cocoa Board (COCOBOD) is grappling with a severe financial crisis, leading to the auction of its essential agro products crucial for the upcoming cocoa season. This predicament arises from COCOBOD’s failure to settle a substantial GH¢3.9 billion duty owed to the Ghana Revenue Authority (GRA).
The auctioned goods, including agrochemicals, fertilizers, and implements, are integral for disease control, pest management, and overall yield enhancement in cocoa farming. The supply contracts, initially Cost, Insurance, and Freight (CIF) to Tema, saw COCOBOD unable to meet payment obligations to suppliers, resulting in the abandonment of goods and their subsequent auction by Customs.
The exorbitant duty demands by GRA have made the products unaffordable for both suppliers and COCOBOD, posing significant threats to agronomic practices and potentially resulting in low cocoa yields, with broader implications for Ghana’s economy.
The financial plight of COCOBOD stems from the withdrawal of tax exemptions by the government in July 2023, necessitating the payment of import duty on all the board’s imports into the country. This move strained COCOBOD’s finances, leading to the abandonment of 73 containers of agro products at the port of Tema.
Efforts by COCOBOD’s management to reverse the tax exemption withdrawal have reportedly been acknowledged by the Ghanaian Parliament. However, the implementation timeline remains uncertain, leaving the fate of the auctioned goods in limbo.
To address financial challenges, COCOBOD recently extended an invitation to holders of its short-term debt securities to exchange them for longer-term debt securities. This restructuring effort reflects the broader financial struggles faced by the institution.
The International Monetary Fund (IMF) is reportedly supporting economic reform programs by the Akufo-Addo government to address COCOBOD’s losses. The successful implementation of these programs is crucial for the disbursement of the $3 billion IMF bailout, with the first installment of about $600 million already received.
Amid the financial turmoil, COCOBOD, through Calbank, announced the launch of a debt securities exchange program. This program invites holders of short-term debt securities (Cocoa Bills) to exchange them for longer-term debt securities (Bonds). COCOBOD’s financial challenges extend beyond the duty dispute, with reports indicating over-staffing and difficulties in paying for services rendered.
As stakeholders closely monitor these developments, Finance Minister Ken Ofori-Atta recently announced a program to restructure COCOBOD’s debt. The unfolding situation underscores the delicate balance required to ensure the stability of Ghana’s crucial cocoa sector, urging stakeholders to carefully review the Exchange Program documents for further details and seek professional advice before making investment decisions.
Ghana’s recently introduced Emission Levy, which came into effect on February 1, 2024, has stirred a wave of mixed reactions as it enters its early stages of implementation.
The controversial tax, aimed at curbing carbon emissions, has received both support as a positive environmental step and criticism for its perceived burden on the ordinary Ghanaian.
Under the new levy, vehicles, motorcycles, and other specified modes of transportation are subject to varying charges based on their emission levels.
While some Ghanaians applaud the initiative as a positive move towards environmental conservation, a significant portion of the population deems the tax needless and financially burdensome.
The levy, which is part of the Emissions Levy Act, 2023 (Act 1112), imposes charges on carbon dioxide and equivalent emissions from internal combustion engine vehicles.
Per the Act, users of motorcycle and tricycles are required to pay GH¢75 per annum for the levy.
Motor vehicles, buses, and coaches which are up to 3000 cc will pay GH¢150 per annum, while motor vehicles, buses, and coaches above 3000 cc, cargo trucks, and articulated trucks will pay GH¢300 per annum.
See the list below as published by the GRA
• Motorcycles & tricycles – GHS75 per annum
• Motor vehicles, buses and coaches up to 3000 cc – GHS150 per annum
• (i) Motor vehicles, buses and coaches above 3000 cc – GHS300 per annum
(ii) Cargo trucks and articulated trucks – GHS300 per annum
Okay FM journalist, Kwame Nkrumah Tikese, has revealed the employment packages enjoyed by the Ghana Revenue Authority (GRA) Commissioner, Rev. Ammishaddai Owusu-Amoah, who is facing public criticism due to his continuous stay at GRA despite not having a contract.
Rev. Dr. Ammishaddai Owusu-Amoah has admitted publicly that he is long past retirement age of 60 years. He acknowledged, further, that he has been working without a contract for two years and is into his third post-retirement year without a contract. This information was disclosed by Rev. Owusu Amoah during a Public Accounts Committee hearing.
This information, which was widely condemned, has been exacerbated by recent details on how much he earns as salary and other packages affiliated with his position as Commissioner.
According to Kwame Nkrumah Tikese, Rev. Ammishaddai Owusu-Amoah is the second highest-paid government appointee after the Governor of the Bank of Governor, Dr Ernest Addison.
It is alleged that the GRA boss takes home GHC137,794.80 every month as salary. He also reportedly enjoys housing allowance of GHC6,000, home enhancement allowance of GHC2,000, travel per diem of $1500, among others.
The other packages said to be enjoyed by Rev. Ammishaddai Owusu-Amoah are as follows:
The Ghana Revenue Authority (GRA) had initially announced February 1, 2024, as the commencement date for the implementation of the Emissions Levy, as sanctioned by Parliament.
However, on the first day of implementation, the process is said to have encountered a setback due to a reported system malfunction, per reports that referenced Accra-based TV3 as their source.
According to reports, the website designated for processing applications (www.Ghana.gov) failed to function, leading to a disruption in the implementation of the Emissions Levy.
The GRA is yet to comment on this claim.
As outlined in the legislation passed by Parliament in December 2023, individuals wishing to pay the emissions levy must complete forms exclusively through the Ghana.gov platform before obtaining their road-worthy certificates from the Driver and Vehicle Licensing Authority (DVLA).
The Emissions Levy, part of the government’s initiatives to address carbon emissions and promote eco-friendly technologies, imposes a levy on carbon dioxide equivalent emissions from internal combustion engine vehicles.
The levy structure includes an annual payment of GH¢75 for motorcycle and tricycle users, GH¢150 for motor vehicles, buses, and coaches up to 3000 cc, and GH¢300 for motor vehicles, buses, and coaches above 3000 cc, cargo trucks, and articulated trucks. The measure aims to contribute to efforts in reducing greenhouse gas emissions and achieving net-zero targets.
This legislation is imposing a levy on carbon dioxide equivalent emissions for internal combustion engine vehicles, with the aim of incentivizing the adoption of eco-friendly technology and green energy.
The ongoing move is anticipated to contribute to enhanced environmental management and the control of air pollution.
Under this Act, motorcycles and tricycles are currently required to pay an annual fee of GHC 75, while motor vehicles, buses, and coaches with engines up to 3000 cc must pay GHC 150 per annum. Motor vehicles, buses, and coaches exceeding 3000 cc, cargo trucks, and articulated trucks are currently subject to a GHC300 annual levy.
To facilitate seamless payment, individuals falling under the Emissions Levy mandate are currently instructed to register and pay exclusively on the ghana.gov platform.
Section 4(4) of Act 1112 is currently emphasizing that entities issuing road use certificates, including the Driver and Vehicle Licensing Authority (DVLA) and other testing centres, must currently verify proof of levy payment before issuing a road use certificate.
The GRA is currently urging all vehicle owners to comply with this directive and fulfill their obligations by promptly paying the Emissions Levy as outlined in Act 1112.
This ongoing initiative represents a significant step towards encouraging sustainable transportation practices and reducing the carbon footprint in Ghana.
A broadcast journalist at Peace FM, Kwabena Marfo, has raised concerns over President Nana Addo Dankwa Akufo-Addo’s decision not to dismiss Rev. Dr. Ammishaddai Adu Owusu-Amoah, the head of the Ghana Revenue Authority (GRA), despite having surpassed the retirement age two years ago.
Speaking on Neat FM’s Morning Show on January 31, 2024, Marfo drew attention to what he perceives as a selective approach by the president, citing the removal of former Auditor General Daniel Domelevo for similar reasons.
Marfo highlighted the apparent inconsistency in President Akufo-Addo’s actions, emphasizing that the president swiftly compelled Domelevo to retire, based on age-related grounds.
“The age that he (Owusu-Amoah) is talking about now, they should have a recheck. When such things happen, I direct it to the president straight,” Marfo expressed.
He continued, “Because we were in this country, and he told us that Domelevo, who was the Auditor General, was sixty years, so he should go on retirement. We argued and argued, but he forced Domelevo to go on by forced retirement.”
Marfo pointed out the repercussions of such actions, stating, “When Domelevo went to court, he won the case, proving that the way he was removed wasn’t correct. Look at this one; his tenure in office has lasted for a very long time, but he is still in office.”
Questioning the president’s decision, Marfo added, “If you do such things, you open yourself up for criticism, because you are being selective. Why is this particular person still in office when his retirement is due, while Domelevo was relieved of his duties?”
During a recent session with the Public Accounts Committee, Rev. Dr. Ammishaddai, the GRA boss, disclosed that his tenure had expired three years ago. However, in contrast to the former Auditor General, he continues to hold his position without an official contract.
The journalist’s remarks underscore growing scrutiny over the perceived inconsistency in the president’s handling of retirements based on age within government agencies.
The Ghana Revenue Authority (GRA) has officially launched the implementation of the Emissions Levy Act, 2023 (Act 1112) starting February 1, 2024.
Under this act, a levy will be imposed on carbon dioxide equivalent emissions specifically targeting internal combustion engine vehicles. The GRA underscores that this initiative aligns with the government’s commitment to addressing greenhouse gas emissions.
The primary goal of introducing the emissions levy is to encourage the adoption of environmentally friendly technology and green energy. This is expected to contribute significantly to improved environmental management, as well as the control of air and water pollution.
Individuals obligated to fulfill the Emissions Levy requirement are instructed to complete the registration process and make levy payments exclusively through the ghana.gov platform, as specified by the authority.
“Under section 4(4) of Act 1112, a person required to issue a road certificate (Driver and Vehicle Licensing Authority (DVLA) and other testing centres) shall demand evidence of payment of the levy before issuing a Road Use Certificate.”
Additionally, the GRA called on all vehicle owners to adhere to the directive and fulfill their obligation by paying the Emissions Levy as stipulated in Act 1112.
The Ghana Revenue Authority (GRA) is actively pursuing a receiver of defunct banks for an amount of GHȼ91 million in evaded taxes.
The licenses of over 300 financial institutions were revoked by the central bank in 2017 due to various financial breaches.
Appearing before the Public Accounts Committee, Mr. Edward Apenteng Gyamerah, Commissioner in Charge of Domestic Tax and Revenue Division at the GRA, disclosed that the GRA has been unable to collect the GHȼ91 million owed by the defunct banks.
The receiver has been notified multiple times to remit the funds to the GRA, as it holds the first right to receive any such payments if the receiver recovers money from the companies.
“And we are yet to receive from the receiver,” he said.
A member of the committee, Kofi Adams, emphasized the significance of transparency and accountability by requesting copies of the letters, specifically the first and the latest ones, sent to the receiver demanding payments.
He expressed concern that with significant tax revenues due to the government remaining uncollected, there is no justification for imposing additional taxes on the citizens.
National Democratic Congress (NDC) flagbearer, John Mahama, has made a pledge to cancel the controversial contract between the Ghana Revenue Authority (GRA) and Strategic Mobilisation Limited (SML).
He characterized such agreements as corrupt and stated that they would not be allowed to persist under his administration, as they go against the nation’s best interests.
Mr. Mahama emphasized his commitment to strengthening anti-corruption measures and expressed his readiness to terminate the SML contract if elected.
“One would have thought that the corruption cases were enough but it has numb Ghanaians. Corruption does not shock Ghanaians the way it used to shock us”, he said.
“An NDC government under me will not recognise or accept this SML agreement. The President has hurriedly got KPMG to audit it, whatever audit they will do I say we won’t accept or respect any agreement with SML.”
During a meeting with organized labor as part of the “Building Ghana Tour” of the Eastern Region, John Mahama expressed his commitment to addressing corruption in the country. He pledged to cancel the controversial contract between the Ghana Revenue Authority (GRA) and Strategic Mobilisation Limited (SML), considering such agreements as corrupt and against the nation’s best interests.
In a December 2023 investigative report, The Fourth Estate implicated Strategic Mobilisation Ghana Limited (SML), the Ghana Revenue Authority (GRA), and the Ministry of Finance in a contentious contract.
The report alleged that GRA had granted SML a purported 10-year contract with an annual payment of $100 million, raising concerns about possible irregularities. SML refuted this claim, asserting that it had a five-year contract instead.
The GRA, in a statement on December 20, 2023, maintained that proper procurement procedures were followed. On January 3, 2024, SML welcomed President Akufo-Addo’s directive to suspend its ongoing revenue assurance operations and undergo an audit of its contract with the GRA and the Ministry of Finance.
President Akufo-Addo has appointed KPMG, an audit, tax, and advisory services firm, to conduct an immediate audit. SML expressed confidence that the audit would provide a clear and accurate depiction of its operations.
About a week ago, the president approved an extension to audit firm KPMG, allowing more time to complete its assessment of the controversial contract.
John Mahama says the next NDC administration will not recognize government's revenue assurance contract with SML.#TV3NewDaypic.twitter.com/CRZqEGdAbM
Labour analyst Austin Gamey has recommended that the appointing authorities issue a formal employment contract to the Commissioner-General of the Ghana Revenue Authority (GRA), Rev. Dr. Ammishaddai Owusu-Amoah.
This advice comes in response to concerns raised about the commissioner’s extended tenure beyond his retirement age without proper contractual documentation.
The issue gained attention during a Public Accounts Committee sitting on Monday, January 29, 2024, where Member of Parliament Sam Nartey George exposed Owusu-Amoah for serving over two years without a formal contract.
Gamey stressed the illegality of public servants holding office beyond retirement age without a written contract, especially in the GRA commissioner’s case.
While acknowledging that some public servants may continue under casual arrangements, he emphasized the need for a legal contract.
During an interview on Eyewitness News on Tuesday, January 30, 2024, Mr Gamey suggested that if the appointing committee believes there is no immediate replacement for Owusu-Amoah, they should address the issue by providing him with a written employment contract.
“For now, the reality is that if you are 60 years old and you are in public services, you are first of all supposed to be told that you have attained the retirement age and therefore you quit the job. But some are given contracts and these contracts are not casual work. It is only casual work under our law that in certain circumstances, it will be a gentlemanly agreement to change the party employee and employed. But this one is not a casual job that was supposed to be done in a week or a month.
“If there is no one to replace him, the employer should give him a written contract of employment,” he stated.
The Ghana Revenue Authority (GRA) is actively pursuing the receiver of defunct banks for an amount of GHȼ91 million in evaded taxes.
The licenses of over 300 financial institutions were revoked by the central bank in 2017 due to various financial breaches.
Appearing before the Public Accounts Committee, Mr. Edward Apenteng Gyamerah, Commissioner in Charge of Domestic Tax and Revenue Division at the GRA, disclosed that the GRA has been unable to collect the GHȼ91 million owed by the defunct banks.
The receiver has been notified multiple times to remit the funds to the GRA, as it holds the first right to receive any such payments if the receiver recovers money from the companies.
“And we are yet to receive from the receiver,” he said.
A member of the committee, Kofi Adams, emphasized the significance of transparency and accountability by requesting copies of the letters, specifically the first and the latest ones, sent to the receiver demanding payments.
He expressed concern that with significant tax revenues due to the government remaining uncollected, there is no justification for imposing additional taxes on the citizens.
The Commissioner of the Ghana Revenue Authority (GRA), Rev. Dr. Ammishaddai Owusu-Amoah, has acknowledged that he has been working without a contract.
The revelation came during a session of the Public Account Committee on Monday, January 29, 2024, where concerns were raised by the Minority in Parliament regarding matters related to his retirement.
Ningo-Prampram MP, Sam George, questioned the GRA Boss about his employment status, particularly whether he was working on a contract, given that he had surpassed the mandatory retirement age of 65 years. The question sparked a disagreement between members of the committee.
The committee’s Chairman, Dr. James Klutse Avedzi, adjourned the sitting for 45 minutes due to technical issues with the public address systems in the committee room.
Reacting to the question after the break, Rev. Ammishaddai said, “I turned 62 in October 2023.”
Asked whether he has been working on contract, Reverend Ammishaddai responded, “Mr Chairman, as far as I know, a letter was sent to the board for me to continue working until it is sorted out with the Ministry of Finance and the appointing authority.”
Following the committee sitting, Sam George, speaking to the media, expressed concerns about the GRA Commissioner’s continued tenure beyond the mandatory retirement age, labeling it as unconstitutional.
He called on the President to adhere to the constitution and suggested that if no action is taken, he would bring up the issue on the floor of Parliament upon resumption.
In the 2023 fiscal year, the Ghana Revenue Authority (GRA) achieved a notable milestone by collecting GH¢113.06 billion, surpassing the revised target of GH¢109.19 billion.
This accomplishment reflects a substantial nominal growth rate of 49.3%, exceeding the anticipated growth rate of 44.2% compared to the 2022 fiscal year.
The initial task for GRA was to collect a total tax revenue of GH¢106 billion for the 2023 fiscal year, representing a remarkable 40.0% growth over the GH¢75.71 billion collected in the 2022 fiscal year.
According to the Commissioner-General of GRA, Rev. Dr. Ammishaddai Owusu-Amoah, the revenue target was adjusted upward to GH¢109.19 billion in the 2023 Mid-Year Budget, reflecting a 3.0% increase or GH¢3.20 billion. This adjustment led to a growth rate of 44.2% over the 2022 collection.
Rev. Dr. Owusu-Amoah expressed satisfaction, highlighting a year-on-year growth of 49.3%, the highest in the last two decades, and the highest tax-to-GDP ratio of 14.1% in the past six years.
Key details of the 2023 revenue mobilized include a 54.0% growth in domestic tax revenue, contributing 73% to the total revenue. Tax revenue from international trade (Customs) grew by 38.2%, contributing 27% to total tax revenue.
The Commissioner attributed the outstanding performance to intensified compliance activities, high Corporate Income Tax (CIT) payments from banks, increased revenue from 1% withholding tax at ports, and the resumption of full-scale collection of tax stamps and Vehicle Income Tax (VIT) payments.
Other contributing factors included effective classification and valuation of goods, improved monitoring to curb leakages, and the Extractive sector’s contribution, particularly from mining firms.
The Commissioner emphasized the positive impact of the Extractive sector, with mining firms leading in Corporate Income Tax contributions. The total contribution from these companies grew by 39.6%, reaching GH₵6,135.80m in 2023.
The VAT sector witnessed significant growth, with Domestic VAT experiencing a year-on-year increase of 61.9%, although falling short of its target by 9.9%. Import VAT exceeded the target by 3.5%, recording a growth of 53.3%. The E-Levy tax on electronic transactions also saw an 85.7% year-on-year growth.
The Commissioner-General expressed gratitude to staff, taxpayers, and stakeholders for their contributions to the remarkable growth in tax revenue. He urged eligible individuals and businesses to contribute their fair share to Ghana’s socio-economic development. The GRA affirmed its commitment to expanding tax initiatives outlined in the 2024 Budget Statement, engaging stakeholders for seamless implementation.
President Akufo-Addo has rejected the Ghana Revenue Authority’s (GRA) request to allow the continuous operation of SML’s monitoring system during the ongoing audit conducted by KPMG.
The President has specified that the suspension should persist until KPMG completes its audit and submits the findings for review.
This decision was communicated by Eugene Arhin, the Director of Communications at the Office of the President, through a press statement issued on Wednesday, January 24.
“The President has denied GRA’s request and has directed that the status quo, with respect to the suspension of the performance of the contract, should remain in effect until the completion of the audit and, subsequent, submission of the audit report by KPMG,” an excerpt of the release said.
Initially set for completion by Tuesday, January 16, 2024, the new deadline for KPMG’s work is now Friday, February 23, 2024.
This extension follows a request from KPMG to the President, seeking additional time beyond the initial two-week period provided for the task.
“KPMG is to submit its final report no later than Friday, 23rd February 2024,” the statement added.
In a December 2023 investigative report, The Fourth Estate implicated Strategic Mobilisation Ghana Limited (SML), the Ghana Revenue Authority (GRA), and the Ministry of Finance in a contentious contract.
The report alleged that GRA had granted SML a purported 10-year contract with an annual payment of $100 million, raising concerns about possible irregularities. SML refuted this claim, asserting that it had a five-year contract instead.
The GRA, in a statement on December 20, 2023, maintained that proper procurement procedures were followed. On January 3, 2024, SML welcomed President Akufo-Addo’s directive to suspend its ongoing revenue assurance operations and undergo an audit of its contract with the GRA and the Ministry of Finance.
President Akufo-Addo appointed KPMG, an audit, tax, and advisory services firm, to conduct an immediate audit.
Meanwhile, the Office of the Special Prosecutor (OSP) has initiated an investigation into the controversial contract between Strategic Mobilisation Ghana Limited (SML) and the Ghana Revenue Authority (GRA).
The focus of the probe is on potential breaches of procurement processes and allegations of corruption and corruption-related activities.
The Ghana Revenue Authority (GRA) is currently embroiled in a series of revenue assurance scandals, raising doubts about the perceived integrity of its Board Chairman, Tony Oteng-Gyasi, and Commissioner General, Reverend Dr. Ammishaddai Owusu-Amoah.
Despite being figures with public acclaim for their honesty and principles, they are overseeing what some see as Finance Minister Ken Ofori-Atta’s final financial move before his departure at the end of the year.
Despite unsuccessful attempts to remove them, a KPMG probe follows the GRA’s board and management’s failed attempt to justify the Strategic Mobilization Limited (SML) transaction.
There are ongoing efforts to reverse President Akufo-Addo’s decision to investigate the SML deal, claiming potential revenue loss if the contract is suspended.
Mr Oteng-Gyasi and Mr Owusu-Amoah, considered highly moral and honest by some, are now under scrutiny for their roles in the controversial SML transaction.
Mr Oteng-Gyasi’s recent holiday during public scrutiny, along with his subsequent letter to the President urging reconsideration of the contract suspension, has sparked controversy.
Despite Mr Oteng-Gyasi’s historical involvement in advocating principles, as evidenced by a video discussing procurement malpractices in Ghana, his recent actions in the SML deal have raised questions about his commitment to these principles.
His political affiliations, spanning both the National Democratic Congress (NDC) and New Patriotic Party (NPP), add complexity to the situation.
The contradictions in Mr Oteng-Gyasi’s public life, from advocating nationalism to his involvement in controversial financial transactions, paint a complex picture.
His silence amid calls for transparency adds to the confusion, necessitating a response to address the concerns surrounding his public life.
As Oteng-Gyasi faces questions about his oversight of revenue assurance deals, the public awaits his response to allegations and a demonstration of commitment to the principles he champions.
His handling of these challenges will likely influence public perception of his stewardship of public resources.
The broader issue underscores concerns about public life and who truly champions public interest in the leadership of the GRA.
The Executive Director of the Africa Centre for Energy Policy (ACEP), Ben Boakye, has expressed deep concern over the Ghana Revenue Authority’s (GRA) letter to the President.
The letter from GRA appealed to President Akufo-Addo to permit the operation of the Strategic Mobilisation Ghana Limited (SML-Ghana) system, aimed at enhancing revenue assurance for control purposes.
President Akufo-Addo had earlier directed the suspension of the GRA/SML contract on January 2, appointing the international audit and accounting firm, KPMG, to conduct an audit within two weeks.
The Commissioner General of GRA, Rev. Dr. Amishaddai Owusu-Amoah, argued that suspending the SML system would cause disruptions in operations.
The GRA’s letter stated, “Having carefully reviewed the concern and based on our own understanding of the contracts and the deliverable, we are of the opinion that the system that has been installed to enhance revenue assurance, for control purposes, and also to aid with the ongoing investigation could with your kindest permission be allowed to run.”
Ben Boakye, reacting to this statement on Joy FM’s Super Morning Show, criticized GRA for not substantiating their request with sufficient evidence to support the claimed consequences of suspending SML’s operation.
He pointed out that when the suspension occurred, SML welcomed it and pledged to wait for the investigation’s completion within two weeks.
Mr Boakye expressed concern over the GRA Commissioner General’s approach, stating, “When the suspension happened, SML welcomed the suspension and communicated that they were going to wait for the investigation to be over. The investigation was to be conducted within the space of two weeks.
“The Commissioner General waited for almost that time to elapse and then writes to the President to essentially tell the President that ‘Mr. President you are the appointing authority, we would only comply even though you’re wrong, we’ll comply as you wish but allow us to continue to run the system’, essentially telling the President that he had wrong judgement on suspending the arrangement until investigations were over and I find that really, really troubling,” he said.
“And also to the fact that when the commissioner general writes essentially five paragraphs to tell the president that he should allow the contract to persist, he doesn’t provide any data and justification to tell the president why the president is wrong and he is right. And it feeds into that broad context of lack of accountability for how things happen in this country.
He further criticized the GRA for failing to counter the controversy with factual information and contributing to the opacity in government dealings.
“We have copiously provided data to show that this contract could not have been informed by credible data and capacity and understanding of how the industry works.
Mr Boakye emphasized the need for the Commissioner General to challenge the data supporting the contract and engage in a transparent conversation with the public to address concerns about the contract’s credibility.
“So if the Commissioner General still insists that it is in the interest of Ghana for this contract to persist, what he needs to do is to challenge the data that has been put out, turning the conversation that the public is actually driving and let him know that he and the finance minister along. And it couldn’t have been a genuine intention to save Ghana money and he’s still dancing around the issue.”
The Electricity Company of Ghana (ECG) has clarified that it has not yet enforced the Value-Added Tax (VAT) on residential electricity consumption exceeding lifeline units.
Despite a directive from Finance Minister Ken Ofori Atta on December 12, 2023, instructing ECG and Northern Electricity Distribution Company (NEDCO) to collaborate with the Ghana Revenue Authority (GRA) for VAT implementation, the company states that the order is not currently in effect.
Originally slated to commence on January 1, 2024, the implementation aligns with Sections 35 and 37, as well as the First Schedule (9) of the Value Added Tax (VAT) Act, 2013 (ACT 870).
In a notice issued on Monday, ECG stated, “The Value Added Tax (VAT) on residential electricity consumption above the lifeline category has not been implemented. All stakeholders should please take note.”
Despite consumer opposition, citing potential cost hikes and economic repercussions, the Ministry of Finance defends the measure, asserting its alignment with the government’s medium-term strategy and the IMF-Supported Post-COVID-19 Programme.
The Ghana Revenue Authority (GRA) has formally requested President Akufo-Addo’s permission to allow the continued operation of the Strategic Mobilisation Ghana Limited (SML) system.
This system, aimed at enhancing revenue assurance and control, has been put in place.
“The system will continue to record data real-time until your further directive after the conclusion of the investigation.
“Having carefully reviewed the concern and based on our own understanding of the contracts and the deliverable, we are of the opinion that the system that has been installed to enhance revenue assurance, for control purposes, and also to aid with the ongoing investigation could with your kindest permission be allowed to run,” portions of GRA’s letter said.
The GRA emphasized that the system would consistently record real-time data until further directives are given post the ongoing investigation.
In a response dated January 16, 2024, and signed by the Commissioner General of GRA, Rev. Dr Amishaddai Owusu-Amoah, the appeal was made due to concerns raised by SML about potential operational ramifications and disruptions if the intended suspension of operations takes place.
The GRA, after a careful review of these concerns and contract details, expressed the opinion that, with the President’s permission, the installed system should be allowed to run.
The context of this appeal arises from President Akufo-Addo’s decision on January 2 to suspend the GRA/SML contract and appoint the international audit firm KPMG to conduct an audit within a two-week timeframe.
Despite the suspension, GRA noted that it could result in revenue losses, even though no payments would be made on the contract until the President’s directive is clarified.
The SML contract, awarded by the Ministry of Finance and GRA, entails the company receiving over $100 million annually for a five-year period, renewable for another five years.
The President’s decision to suspend the contract followed a parliamentary resolution to investigate it, prompted by revelations from The Fourth Estate about false claims made by SML regarding a previous contract for revenue assurance in the downstream petroleum sector.
The investigation exposed discrepancies in SML’s claims of saving Ghana GHS3 billion, which GRA initially supported without providing specific details.
Civil society organizations, such as the Africa Centre for Energy Policy and IMANI Africa, challenged GRA’s assertions, citing data inconsistencies on the Ministry of Finance and National Petroleum Authority websites.
The Ministry of Finance’s subsequent instruction in June 2023 to expand SML’s work to include monitoring oil and gold production further fueled skepticism, with some members of parliament, civil society groups, and anti-corruption campaigners questioning the basis for awarding contracts to SML in sectors that already had existing protective systems.
Founder of the New Force, Nana Kwame Bediako, also known as Cheddar, has stated that he remains resolute and steadfast in his position despite what he perceives as attempts by the government to intimidate or pressure him.
Cheddar believes there are concerted efforts, possibly through the tax evasion allegations, to coerce or influence him in a way that could impact his political ambitions.
The GRA had imposed a fine of GH¢50,000 on Bediako, claiming he failed to file personal income tax returns from 2013 to 2016. Despite settling an amount of GH¢209,171 between 2018 and 2020, a January 18 publication reported that Bediako allegedly neglected to file returns for the post-2020 period.
In rejecting the tax evasion claims, Bediako has asserted that these allegations are part of a deliberate effort by the government to sabotage his political aspirations.
In response to the tax evasion claims, Nana Kwame Bediako took to social media on January 18, 2024, to defend himself and address the situation.
Speaking in local parlance he said “ I woke up this morning, only to see my pictures on the front cover of multiple publications alleging that I have evaded taxes. I have dedicated almost 22 or 23 years in this country. When it comes to taxes, I have consistently fulfilled my obligations and continue to do so.”
He emphasized that, given his regular importation of goods into the country, it would have been impossible for him to evade taxes without detection up to the present date.
Emphasizing his commitment to fulfilling tax obligations, Nana Kwame Bediako, popularly known as Cheddar, pointed out that despite his consistently high income, he has consistently ensured the timely payment of taxes.
Expressing bewilderment at the situation, Cheddar questioned the motives behind the Ghana Revenue Authority’s (GRA) choice to publish his pictures in connection with the tax evasion allegations.
He suggested that this move by the government was a deliberate tactic to embarrass him. However, he noted that such actions would prove futile.
“If we consider the state of the economy and the hardship we face as citizens, it appears the government was doing nothing to alleviate our difficulties.
“The government intends to disgrace me, so it published my pictures in the papers. No, you cannot disgrace a man whom God has graced,” he said.
He added that “The New Force, we are moving forward. We will not stop and no matter what you say, the way is forward.”
Taking advantage of the situation, Cheddar used the opportunity to make a broader appeal to the government. He called on authorities to focus on creating more job opportunities to address the issue of unemployment, emphasizing that it’s crucial to have a larger portion of the population gainfully employed rather than relying on a few individuals.
He pointed out his observation that the government, in his view, has struggled to meet its responsibilities. If elected, he pledged to provide transparency by furnishing evidence of how tax revenues are utilized, differentiating his approach from what he perceives as shortcomings in the current government’s accountability.
Founder of the New Force, Nana Kwame Bediako, also known as Cheddar, has countered accusations of tax evasion made by the Ghana Revenue Authority (GRA) while alleging that the government is attempting to undermine him due to his presidential ambitions in the 2024 elections.
The GRA had imposed a fine of GH¢50,000 on Bediako, claiming he failed to file personal income tax returns from 2013 to 2016. Despite settling an amount of GH¢209,171 between 2018 and 2020, a January 18 publication reported that Bediako allegedly neglected to file returns for the post-2020 period.
In rejecting the tax evasion claims, Bediako has asserted that these allegations are part of a deliberate effort by the government to sabotage his political aspirations.
The GRA further estimated tax assessments for Bediako at GH¢2,088,228 and GH¢5,096,536 for the years 2021-2022, respectively, along with penalties for his failure to file his personal income tax returns.
Bediako, also known as Cheddar, has vehemently denied these accusations, suggesting that the GRA aimed to disgrace him and tarnish his reputation. He expressed the belief that he was being targeted despite being one of the few individuals consistently fulfilling his tax obligations.
In response to the tax evasion claims, Nana Kwame Bediako took to social media on January 18, 2024, to defend himself and address the situation.
Speaking in local parlance he said “ I woke up this morning, only to see my pictures on the front cover of multiple publications alleging that I have evaded taxes. I have dedicated almost 22 or 23 years in this country. When it comes to taxes, I have consistently fulfilled my obligations and continue to do so.”
He emphasized that, given his regular importation of goods into the country, it would have been impossible for him to evade taxes without detection up to the present date.
Emphasizing his commitment to fulfilling tax obligations, Nana Kwame Bediako, popularly known as Cheddar, pointed out that despite his consistently high income, he has consistently ensured the timely payment of taxes.
Expressing bewilderment at the situation, Cheddar questioned the motives behind the Ghana Revenue Authority’s (GRA) choice to publish his pictures in connection with the tax evasion allegations.
He suggested that this move by the government was a deliberate tactic to embarrass him. However, he noted that such actions would prove futile.
“If we consider the state of the economy and the hardship we face as citizens, it appears the government was doing nothing to alleviate our difficulties.
“The government intends to disgrace me, so it published my pictures in the papers. No, you cannot disgrace a man whom God has graced,” he said.
He argued that if the GRA had concerns about his tax payments, they could have opted for a more diplomatic approach, such as scheduling a meeting with him, rather than resorting to the publicized method they employed.
Taking advantage of the situation, Cheddar used the opportunity to make a broader appeal to the government. He called on authorities to focus on creating more job opportunities to address the issue of unemployment, emphasizing that it’s crucial to have a larger portion of the population gainfully employed rather than relying on a few individuals.
He pointed out his observation that the government, in his view, has struggled to meet its responsibilities. If elected, he pledged to provide transparency by furnishing evidence of how tax revenues are utilized, differentiating his approach from what he perceives as shortcomings in the current government’s accountability.
Founder of the New Force, Nana Kwame Bediako, also known as Cheddar has reacted to allegations of tax evasion made by the Ghana Revenue Authority (GRA) against him.
The GRA accused Mr Bediako of failing to file personal income tax returns from 2013 to 2016, resulting in a fine of GH¢50,000.
In a publication dated January 18, it was reported that despite settling a sum of GH¢209,171 between 2018 and 2020, Bediako had once again neglected to file his returns for the post-2020 period. The GRA further estimated tax assessments for Bediako at GH¢2,088,228 and GH¢5,096,536 for the years 2021-2022, respectively, along with penalties for his failure to file his personal income tax returns.
Mr Bediako has vehemently denied these accusations, suggesting that the GRA aimed to disgrace him and tarnish his reputation. He expressed the belief that he was being targeted despite being one of the few individuals consistently fulfilling his tax obligations.
In response to the tax evasion claims, Nana Kwame Bediako took to social media on January 18, 2024, to defend himself and address the situation.
He argued that if the GRA had concerns about his tax payments, they could have opted for a more diplomatic approach, such as scheduling a meeting with him, rather than resorting to the publicized method they employed.
Expressing bewilderment at the situation, Cheddar questioned the motives behind the Ghana Revenue Authority’s (GRA) decision to publish his pictures in connection with the tax evasion allegations.
“If we consider the state of the economy and the hardship we face as citizens, it appears the government was doing nothing to alleviate our difficulties.
“The government intends to disgrace me, so it published my pictures in the papers. No, you cannot disgrace a man whom God has graced,” he said.
Speaking in local parlance he added “ I woke up this morning, only to see my pictures on the front cover of multiple publications alleging that I have evaded taxes. I have dedicated almost 22 or 23 years in this country. When it comes to taxes, I have consistently fulfilled my obligations and continue to do so.”
He emphasized that, given his regular importation of goods into the country, it would have been impossible for him to evade taxes without detection up to the present date. He highlighted that despite his consistently high income, he has always made sure to promptly fulfill his tax obligations.
Taking advantage of the situation, Cheddar used the opportunity to make a broader appeal to the government. He called on authorities to focus on creating more job opportunities to address the issue of unemployment, emphasizing that it’s crucial to have a larger portion of the population gainfully employed rather than relying on a few individuals.
He pointed out his observation that the government, in his view, has struggled to meet its responsibilities. If elected, he pledged to provide transparency by furnishing evidence of how tax revenues are utilized, differentiating his approach from what he perceives as shortcomings in the current government’s accountability.
Founder of the New Force, Nana Kwame Bediako, also known as Cheddar, has accused the government of attempting to sabotage him over his intention to run for president in the 2024 elections.
He made this claim while dismissing allegations of tax evasion made by the Ghana Revenue Authority (GRA).
The GRA had accused Bediako of failing to file personal income tax returns from 2013 to 2016, resulting in a fine of GH¢50,000.
In a publication dated January 18, it was reported that despite settling a sum of GH¢209,171 between 2018 and 2020, Bediako had once again neglected to file his returns for the post-2020 period.
The GRA further estimated tax assessments for Bediako at GH¢2,088,228 and GH¢5,096,536 for the years 2021-2022, respectively, along with penalties for his failure to file his personal income tax returns.
Bediako, also known as Cheddar, has vehemently denied these accusations, suggesting that the GRA aimed to disgrace him and tarnish his reputation. He expressed the belief that he was being targeted despite being one of the few individuals consistently fulfilling his tax obligations.
In response to the tax evasion claims, Nana Kwame Bediako took to social media on January 18, 2024, to defend himself and address the situation.
Speaking in local parlance he said “ I woke up this morning, only to see my pictures on the front cover of multiple publications alleging that I have evaded taxes. I have dedicated almost 22 or 23 years in this country. When it comes to taxes, I have consistently fulfilled my obligations and continue to do so.”
He emphasized that, given his regular importation of goods into the country, it would have been impossible for him to evade taxes without detection up to the present date.
He highlighted that despite his consistently high income, he has always made sure to promptly fulfill his tax obligations.
Expressing bewilderment at the situation, Cheddar questioned the motives behind the Ghana Revenue Authority’s (GRA) decision to publish his pictures in connection with the tax evasion allegations. He opined that this was a tactic by government to embarrass him but he noted that such actions would be futile.
“If we consider the state of the economy and the hardship we face as citizens, it appears the government was doing nothing to alleviate our difficulties.
“The government intends to disgrace me, so it published my pictures in the papers. No, you cannot disgrace a man whom God has graced,” he said.
He argued that if the GRA had concerns about his tax payments, they could have opted for a more diplomatic approach, such as scheduling a meeting with him, rather than resorting to the publicized method they employed.
Taking advantage of the situation, Cheddar used the opportunity to make a broader appeal to the government. He called on authorities to focus on creating more job opportunities to address the issue of unemployment, emphasizing that it’s crucial to have a larger portion of the population gainfully employed rather than relying on a few individuals.
He pointed out his observation that the government, in his view, has struggled to meet its responsibilities. If elected, he pledged to provide transparency by furnishing evidence of how tax revenues are utilized, differentiating his approach from what he perceives as shortcomings in the current government’s accountability.
Nana Kwame Bediako, the founder of New Force, has refuted allegations of tax evasion put forth by the Ghana Revenue Authority (GRA).
The leader of New Force garnered attention in state newspapers due to his omission of personal income tax returns for the years 2013 to 2016, resulting in a fine of GH¢50,000.
A publication dated January 18 highlighted that despite settling an amount of GH¢209,171 for the period between 2018 and 2020, Bediako once again failed to submit his returns for the post-2020 period.
The publication further noted GRA’s estimation of Cheddar’s tax assessments to be GH¢2,088,228 and GH¢5,096,536 for the years 2021-2022, coupled with penalties for his non-compliance with personal income tax filings.
In response, Mr. Bediako has asserted that the GRA’s allegations are an attempt to disgrace him and tarnish his reputation.
He suggests that he is being unfairly targeted despite being among the few individuals consistently fulfilling their tax obligations.
On January 18, 2024, Nana Kwame Bediako, popularly known as Cheddar, addressed the tax evasion allegations by utilizing social media platform X to provide his response.
Speaking in local parlance he said “ I woke up this morning, only to see my pictures on the front cover of multiple publications alleging that I have evaded taxes. I have dedicated almost 22 or 23 years in this country. When it comes to taxes, I have consistently fulfilled my obligations and continue to do so.”
“If we consider the state of the economy and the hardship we face as citizens, it appears the government was doing nothing to alleviate our difficulties.
“The government intends to disgrace me, so it published my pictures in the papers. No, you cannot disgrace a man whom God has graced,” he said.
He further expressed that if the GRA harbored concerns about the timeliness of his tax payments, they could have opted for a meeting instead of the method they chose.
Cheddar took the chance to call upon the government to generate more employment opportunities, aiming to alleviate unemployment rather than relying solely on a limited number of private individuals to sustain themselves.
Emphasizing his observation that the government struggles to fulfill its obligations, he declared his intention to vie for the presidency of Ghana. Unlike the current government, he pledged to transparently showcase evidence of how tax revenues would be utilized under his leadership.
Ghana Revenue Authority (GRA) has officially designated January 1, 2024, as the commencement date for the implementation of seven tax amendments recently passed by Parliament and signed into law by President Akufo-Addo.
The announcement, detailed in a circular disseminated by the GRA and published in various newspapers, underscores the significant changes that will impact the country’s tax landscape.
The GRA has committed to developing administrative guidelines and issuing notices as necessary to facilitate the smooth implementation of these amendments. Notably, the authority has highlighted that payroll deductions for January 2024 must reflect the new rates stipulated in the Income Tax (Amendment).
The seven Tax Bills, signed into law by President Akufo-Addo on December 29, 2023, encompass a range of measures affecting different aspects of taxation in Ghana. They include amendments to Value Added Tax (VAT), Excise Duty, Stamp Duty, Emissions Levy, Exemptions, Customs, and Income Tax.
Among these amendments, the VAT Bill aims to broaden the tax net, extend zero rates on locally manufactured products, introduce zero rates on locally-produced sanitary towels, and waive VAT on the import of electric vehicles for public transportation. However, it may also result in a potential increase of over 21% in Motor Insurance Premiums due to the application of Non-Life Insurance Business and products.
The amended Excise Duty Bill seeks to realign excise duty rates on certain drinks, reduce excise duty on plastics, and broaden the coverage of excise duty on plastics to include imported plastic packaging.
The Emission Levy Act imposes levies on carbon dioxide equivalent emissions from specified sectors and internal combustion engine vehicle emissions. This levy structure will affect various sectors, including Construction, Manufacturing, Mining, Oil and Gas, Electricity, Heating, and Motor Vehicles, contributing to the Government’s revenue target of over GHS5 billion in 2024.
While these tax amendments are anticipated to bolster government revenue, concerns have been raised about potential impacts on the cost of living. Notably, motor insurance is expected to surge by more than 30%, adding to the economic considerations accompanying these legislative changes. As these tax reforms take effect, stakeholders will closely monitor their implications on various sectors and the broader economic landscape in Ghana.
The Office of the Special Prosecutor (OSP) has initiated an investigation into the controversial contract between Strategic Mobilisation Ghana Limited (SML) and the Ghana Revenue Authority (GRA).
The focus of the probe is on potential breaches of procurement processes and allegations of corruption and corruption-related activities.
This investigative move follows a complaint filed on December 18, 2023, by The Fourth Estate, represented by journalists Evans Aziamor-Mensah, Adwoa Adobea-Owusu, and Manasseh Azure Awuni. The details of the investigation were outlined in the Office of the Special Prosecutor’s half-yearly report released on December 29, 2023.
“The Office has commenced a preliminary investigation into contractual arrangements between Strategic Mobilization Ghana Limited (a company registered in Ghana) and Ghana Revenue Authority for the stated objective of the enhancement of revenue assurance in the downstream petroleum sector, upstream petroleum production, and minerals and metals resources value chain.”
“The preliminary investigation is based on a complaint filed on 18 December 2023 by The Fourth Estate (a project of Media Foundation for West Africa) represented by three (3) journalists – Evans Aziamor-Mensah, Adwoa Adobea-Owusu, and Manasseh Azure Awuni. The complaint alleged possible corruption, including breaches of the Public Procurement Act, in respect of the contractual arrangements,” the OSP added.
In a December 2023 investigative report, The Fourth Estate implicated Strategic Mobilisation Ghana Limited (SML), the Ghana Revenue Authority (GRA), and the Ministry of Finance in a contentious contract.
The report alleged that GRA had granted SML a purported 10-year contract with an annual payment of $100 million, raising concerns about possible irregularities. SML refuted this claim, asserting that it had a five-year contract instead.
The GRA, in a statement on December 20, 2023, maintained that proper procurement procedures were followed. On January 3, 2024, SML welcomed President Akufo-Addo’s directive to suspend its ongoing revenue assurance operations and undergo an audit of its contract with the GRA and the Ministry of Finance.
President Akufo-Addo appointed KPMG, an audit, tax, and advisory services firm, to conduct an immediate audit. SML expressed confidence that the audit would provide a clear and accurate depiction of its operations.
Meanwhile, the Minerals Commission has stated that it did not play any role in the award of the contract to Strategic Mobilisation Ghana Limited (SML) for revenue assurance services in the gold production sector.
The CEO of the Minerals Commission, Martin Kwaku Ayisi, responded to a Right to Information (RTI) request, stating that the commission had no involvement in awarding the contract to SML.
Nana Kwame Bediako, widely known as Cheddar, is embroiled in a series of tax evasion controversies, according to documents obtained from the Ghana Revenue Authority (GRA).
The records reveal that he has incurred substantial penalties for the non-filing of income tax, raising concerns about his commitment to financial transparency, especially in light of his aspirations to lead the nation.
The disclosed documents expose a recurring pattern of tax evasion. From 2013 to 2016, Cheddar faced penalties of GHC15,222, GHC14,492, GHC13,760, and GHC6,526 for neglecting to submit personal income tax returns. While he seemingly complied for the tax years 2018, 2019, and 2020, the troubling trend of non-compliance resurfaced in 2021 and 2022.
According to the leaked document, the estimated evaded taxes for these two years are staggering, reaching GHC2,088,228 for 2021 and GHC5,096,536 for 2022.
Cheddar’s presidential ambitions, centered around promising a new era of development and change in Ghanaian politics, face a significant challenge with the revelation of consistent failures to fulfill basic civic duties, such as paying taxes.
This inconsistency raises questions about his credibility, especially considering his advocacy for positive change in recent political pronouncements and his declaration of intent to contest the presidency.
The GRA’s recent disclosure serves as a litmus test for Cheddar to address these tax evasion allegations transparently and with accountability. As the general election approaches, voters may find it challenging to reconcile his proclaimed commitment to change with perceived financial hypocrisy.
An aide to the former Chief Executive Officer of the Forestry Commission, Charles Owusu, is of the firm belief that there is no shady business going on between the government and Strategic Mobilization Limited (SML).
An international audit and accounting firm, KPMG, has been appointed to audit contract between the Finance Ministry and SML, following revelations by investigative journalist Manasseh Azure Awuni about false claims made by SML regarding an earlier contract for revenue assurance in the downstream petroleum sector.
The SML contract entitled the company to over $100 million annually for a five-year period, with the possibility of renewal for another five years.
Despite admissions by GRA officials in the investigative documentary that they do not use SML’s figures to calculate taxes and revenue, GRA claimed that SML’s operation had resulted in a significant increase in volumes.
However, the Africa Centre for Energy Policy and IMANI Africa countered the GRA’s claim, stating that the available data on the Ministry of Finance’s website for statutory reporting under the Energy Sector Recovery Act (ESLA) and on the National Petroleum Authority’s (NPA) website did not support the GRA’s assertion of significant revenue increment.
In reaction to the ongoing controversy, Charles Owusu vouched for SML, arguing that it has engaged in activities that have profited the country.
“The SML contract is all about working for government but you will only be paid based on the work you do. I don’t see what corruption issue there is. GRA has come to show the effects of work of SML which has profited the country.
“Presently, if you get fuel from the depot, with the introduction of SML, the government will get hold of its revenue. You can never run away with it because they have set their meters on all the depots in Ghana and are monitoring in their offices.”
In an interview on Peace FM, he further noted that “One thing I even like is the fact that they are able to monitor even at night. They have stopped certain individuals. When you try to temper with it, their alarm blows at their office and this allows GRA officers to arrive at the scene to arrest the individuals. It has happened before.”
According to the Africa Centre for Energy Policy and IMANI Africa, “In the year SML commenced operations (2019/2020), GRA’s data indicates a 5% growth in refined petroleum product consumption relative to the previous year (19.38 million litres). In the same period, the NPA reports a 7% growth (24.71 million litres) in product consumption. In the subsequent year (2020/2021), both GRA and NPA data align, indicating an 11% and 10% growth in product consumption, respectively.”
They added: “The actual growth between 2018/2019 and 2020/2021 was about 62.95 million from NPA data and 60.15 million from the GRA Data. In the 2021/2022 year, the total consumption of refined products in the country declined by 5% and 7% according to NPA and GRA respectively.”
SML had also stated on its website that its operations had stopped “under-reporting, diversion and dilution of fuel products and general non-compliance in the petroleum industry sector.”
When The Fourth Estate team pointed out that services preventing anomalies were performed by other companies contracted by the NPA, SML management admitted the claim was false and promptly deleted it from the company’s website on the same day.
Despite this, in June 2023, the Ministry of Finance instructed the GRA to expand the scope of SML Ghana’s work.
A Ministry of Finance letter said the “Honourable Minister [Ken Ofori-Atta] has determined that there is the need to monitor the production and shipment of oil and gold out of the country.
“To this end, he will like to expand the Revenue Assurance work being performed by SML to include upstream oil drilling by the production companies and the gold mining companies,” the letter, dated June 22, 2023, said.
Due to the controversy, the SML contract, awarded by the Ministry of Finance and the Ghana Revenue Authority (GRA), has been suspended by President Nana Addo Dankwa Akufo-Addo.
Meanwhile, Charles Owusu believes that “the company and the government will be exonerated” at the end of investigations.
The tax mobilisation agency had demanded an apology from Ablakwa for stating that the GRA boss had fled the country amidst an investigation into a significant corruption scandal involving the GRA.
A GRA statement refuted reports of Rev. Dr. Owusu-Amoah absconding, clarifying that he was on a scheduled six-day leave and would resume work on January 15, 2024.
The GRA characterised Ablakwa’s assertions as a “malicious, sensational, misleading, and deliberate attempt to damage the reputation” of the Commissioner-General and the GRA.
However, Ablakwa stood firm, expressing in a rejoinder, “Let me assure the GRA that I do not owe them an apology, and they surely are not going to get one.”
He insisted that the GRA’s response failed to discredit the findings of his parliamentary oversight and criticized the circumstances surrounding the Commissioner-General’s leave during the ongoing audit ordered by the president.
Pointing out the GRA’s statement that Rev. Dr. Owusu-Amoah left Ghana on January 3, 2024, and is set to resume work on January 15, 2024, Ablakwa questioned the legitimacy of describing it as a six-day leave, emphasising that it coincides with the entire promised two-week audit period in a Facebook post.
“The GRA release further states that Rev. Dr. Ammishaddai Owusu-Amoah is on a 6-day leave and will resume work on January 15, 2024. This does not add up. The GRA Commissioner-General left Ghana on January 3, 2024 — a few hours after the January 2, 2024 presidential directive of a KPMG audit.
Leaving Ghana on the 3rd of January, 2024 and resuming work on the 15th of January, 2024 which instructively is the entire period of the promised 2-week audit, cannot be described as a 6-day leave,” he stated.
Ablakwa accused the government of opting for deception and a cover-up instead of an honest and transparent investigation into the alleged $100 million SML scandal.
He concluded by asserting his commitment to constitutional oversight and transparency, stating, “Nothing will stop us from pursuing our constitutional mandate of parliamentary oversight. Forward ever, backward never! For God and Country. Ghana First.”
Read Ablakwa’s response below:
I have become aware of the GRA statement.
Let me assure the GRA that I do not owe them an apology, and they surely are not going to get one.
The GRA response abysmally fails to discredit the findings of my unimpeachable parliamentary oversight.
Consistent with the revelations I published, the GRA has only confirmed that Ghana is the only country in the world where the President orders a crucial audit into a ginormous scandal and the head of the organisation under audit is concurrently allowed to proceed on leave and assisted to travel out of the country during the said audit — absolutely incredulous!
Under another incorruptible President, this GRA boss would have been fired for daring to leave the jurisdiction during such a high profile national audit into the create, loot and share scheme he collaborated with Ken Ofori-Atta to perpetrate.
The GRA release further states that Rev. Dr. Ammishaddai Owusu-Amoah is on a 6-day leave and will resume work on January 15, 2024. This does not add up. The GRA Commissioner-General left Ghana on January 3, 2024—a few hours after the January 2, 2024 presidential directive for a KPMG audit.
Leaving Ghana on the 3rd of January, 2024 and resuming work on the 15th of January, 2024 which instructively is the entire period of the promised 2-week audit, cannot be described as a 6-day leave.
These bizarre developments and blatant official untruths are bound to happen when a corrupt government opts for deception and a grand cover-up instead of an honest, transparent and credible investigation into the US$100 million SML scandal.
Nothing will stop us from pursuing our constitutional mandate of parliamentary oversight. Forward ever, backward never!
Commissioner General of the Ghana Revenue Authority, Dr. Ammishaddai Owusu-Amoah, has refuted allegations that he and his entire immediate family have fled Ghana in connection with the $100 million corruption scandal involving Strategic Mobilisation Ghana Limited (SML).
He clarified that he has returned to the country and is actively performing his duties as the Commissioner-General of the GRA after a brief visit with his family abroad.
“As you can see I have not abandoned my position because of the SML deal”, he said aftercaught up with him during an inspection tour of some GRA offices in the Greater Accra region.
The Member of Parliament for North Tongu, Samuel Okudzeto Ablakwa on Wednesday January 10, 2023 alleged on social media platform ‘X’ that Dr. Owusu-Amoah, and his entire nuclear family have absconded Ghana.
According to Mr. Ablakwa, the Commissioner-General left the country hours before President Akufo-Addo called for an investigation into the matter.
But speaking to Joy Business, Dr. Owusu-Amoah, said the allegations by the MP are false and unfounded.
“I am back in the country after a brief visit outside the country which was planned earlier this year”
He assured that the GRA will continue to work as prescribed by the laws of the country to generate the needed revenue for economic development.
He stressed that all staff and personnel in the authority have pledged their commitment to assist the current administration achieve the revenue target outlined for the year.
He is hopeful the GRA will be able overcome all challenges facing the authority through engagements with businesses and individuals to improve tax compliance.
The Ghana Revenue Authority (GRA) has denied media reports suggesting that its Commissioner-General, Rev. Dr. Ammishaddai Adu Owusu-Amoah, has fled Ghana in connection with the $100 million corruption scandal involving Strategic Mobilisation Ghana Limited (SML).
As per a statement released on January 11, 2024, the GRA affirmed that Rev. Dr. Ammishaddai Adu Owusu-Amoah is currently on a six-day leave and has not fled Ghana in relation to the ongoing investigation into the SML contract conducted by KPMG.
The statement further clarified that Rev. Dr. Owusu-Amoah’s absence has got nothing to do with investigations into the alleged fraudulent SML contract and that the leave was approved a month ago.
It added that the commissioner-general is scheduled to resume work on Monday, January 15, 2024.
“Management of the GRA wishes to categorically state that, the Commissioner-General of GRA, Rev. Dr. Ammishaddai Owusu-Amoah, has not absconded as stated in the said publication.
“The Commissioner-General is currently on a scheduled six (6) day leave which had been approved a month ago. Rev. Dr. Owusu-Amoah will resume work on Monday, 15th January, 2024. While on leave, every engagement that is required of him or GRA in the Audit by KPMG is being diligently attended to either by himself or one of the commissioners,” part of the statement, reads.
It added that “It is a malicious, sensational, misleading and deliberate attempt to damage the reputation of the Commissioner-General, Rev. Dr. Ammishaddai Owusu-Amoah and the GRA as a whole”.
Background:
The Member of Parliament for North Tongu, Samuel Okudzeto Ablakwa, alleged that the Commissioner-General of the Ghana Revenue Authority (GRA), Rev. Dr. Ammishaddai Adu Owusu-Amoah, and his entire nuclear family have absconded Ghana over the $100 million Strategic Mobilisation Ghana Limited (SML) corruption scandal.
According to him, the commissioner-general, who signed the $100 million SML contract, left the country hours before President Nana Addo Dankwa Akufo-Addo called for an investigation into the matter.
The MP, who made these claims in a post shared on X on Wednesday, January 11, 2024, accused President Akufo-Addo of having no intention to get to the bottom of the SML matter because there is no way the GRA boss could have travelled out of the country without his blessings.
He added that “the Owusu-Amoahs’ first travel destination when they left Accra a week ago was São Tomé and Príncipe, and continuous tracking appears to paint a picture of a family in no hurry to return to Ghana, that is, if they will ever return.”
Ablakwa also alleged that the commissioner-general has told his close relations that he has no intention of returning to Ghana anytime soon.
He pointed out that the absence of the GRA boss means that the investigation Akufo-Addo called for, which is being conducted by KPMG, would go nowhere.
About the SML scandal:
An investigation piece by an Accra-based media house, The Fourth Estate, titled, ‘The GH¢ 3 Billion Lie’, accused the Ministry of Finance of awarding a $100 million contract to SML to monitor Upstream Petroleum Production and to Audit the value chain of Minerals and Metals Resources.
Both the GRA and SML came out to justify the agreements that bind the two entities.
SML has stated that its upstream operations have not commenced, and therefore, no revenue has been generated. The company pointed out that the $100 million per year payment allegation is entirely fictional.
President Akufo-Addo appointed KPMG to conduct an immediate audit into the transaction between the Ghana Revenue Authority (GRA) and Strategic Mobilization Ghana Ltd (SML).
A contract which was entered into to enhance revenue assurance in the downstream petroleum sector, the upstream petroleum production and minerals and metals resources value chain.
In a statement issued by the Director of Communication at the Presidency, Eugene Arhin indicated that the President also tasked KPMG to complete the assignment in two weeks and submit appropriate recommendations to him.
The president also directed the Ministry of Finance and GRA to provide KPMG with whatever assistance they will require for conduct of the audit.
He further directed the Ministry of Finance and the Ghana Revenue Authority to suspend the performance of the contract, pending the submission of the audit report, including any payments presently envisaged under its terms.
North Tongu Member of Parliament, Samuel Okudzeto Ablakwa, has denounced President Akufo-Addo‘s much-publicized investigations into the SML scandal as nothing more than a sham.
Ablakwa contends that recent events, particularly the alleged departure of the Ghana Revenue Authority (GRA) Commissioner-General, Rev. Dr. Ammishaddai Adu Owusu-Amoah, with a regular passport instead of his official service passport, raises serious doubts about the authenticity of the ongoing probe.
“The Owusu-Amoahs’ first travel destination when they left Accra a week ago was São Tomé and Príncipe, and continuous tracking appears to paint a picture of a family in no hurry to return to Ghana, that is if they will ever return.
“In the January 2, 2024 press statement from the Akufo-Addo/Bawumia presidency signed by Mr. Eugene Arhin, Ghanaians were informed that ‘President Akufo-Addo has tasked KPMG to complete the assignment in two weeks, and submit appropriate recommendations to him.’
“The release additionally indicated that the ‘President has directed the Ministry of Finance and GRA to provide KPMG with whatever assistance they will require for conduct of the audit.’
“Now here we are, the GRA boss who is to be audited has been surreptitiously assisted to leave the country. It is also worth noting that KPMG has only about 6 days left to report to the President. Clearly, President Akufo-Addo’s much touted investigations into the SML scandal is nothing but a sham,” portions of a statement published on Facebook said.
The parliamentarian asserts that the use of a non-official passport implies that Owusu-Amoah’s journey may not be related to official duties, casting a shadow over the sincerity of the government’s investigation.
Ablakwa suggests that this departure is indicative of a deliberate attempt by the GRA boss to evade potential scapegoating by the government in the aftermath of the scandal’s exposure.
“Painstaking investigations further reveal that Rev. Dr. Ammishaddai Adu Owusu-Amoah has told a few very close friends and allies that he will never return to Ghana, particularly after realizing that there’s an elaborate scheme to make him a scapegoat following Manasseh Azure Awuni’s brilliant SML exposé — even though according to Rev. Dr. Ammishaddai Adu Owusu-Amoah, he only carried out the wishes of the same notorious looting cabal,” he added.
As the controversy surrounding the SML scandal unfolds, Ablakwa has accused the government of orchestrating a deceptive façade of accountability while allegedly allowing key figures involved in the saga to evade scrutiny. The North Tongu MP further questions the credibility of the investigative process and raises concerns about the government’s commitment to holding those implicated accountable.
“The NDC Caucus in Parliament shall be demanding an urgent inquiry into how Rev. Dr. Ammishaddai Adu Owusu-Amoah fled Ghana; we shall seek to identify and sanction the conspirators who facilitated his disgraceful escape despite presidential assurances of an urgent high-stakes KPMG audit; we shall be committed to unraveling the subsequent silence, grand deception and attempted cover-up.
“Ghanaians must resolve to do all in our power to vote out this fantastically corrupt Akufo-Addo/Bawumia NPP regime in this year’s election. We must uproot this government of endless monumental embarrassments. We have really had enough!” he added.
Member of Parliament for North Tongu, Samuel Okudzeto Ablakwa, has claimed that the Commissioner-General of the Ghana Revenue Authority (GRA), Rev. Dr. Ammishaddai Adu Owusu-Amoah, has left the country following the public revelation of the SML scandal.
He asserted that the Commissioner-General of the GRA, Rev. Dr. Ammishaddai Adu Owusu-Amoah, departed the country with his immediate family just days after President Nana Addo Dankwa Akufo-Addo ordered an audit of the contract between SML and the Ghana Revenue Authority.
Okudzeto Ablakwa claims that the Commissioner-General of the GRA, Rev. Dr. Ammishaddai Adu Owusu-Amoah, departed the country using a regular passport rather than his official service passport, suggesting that his journey may not be for official duties.
“Exactly a week ago, the entire Owusu-Amoah family departed at 17:10 on TAP Air Portugal, flight TP 1527 from KIA-Terminal 3. Rev. Dr. Ammishaddai Adu Owusu-Amoah used an ordinary Ghanaian passport issued on June 14, 2019, with its last four digits being 5283.
“Interestingly, the runaway GRA boss did not travel with his Service Passport with 2702 as its last four digits. A Service Passport which was issued to him as GRA Commissioner-General on October 3, 2019. This development adds another layer of confirmation that Rev. Dr. Owusu-Amoah has not embarked on an official trip,” he said.
According to him, this signals that the call for an inquiry into the contract is deceptive, as the GRA boss has reportedly informed individuals in his circle that he does not plan to return to Ghana. Allegedly, he believes the government aims to scapegoat him following the exposure of the scandal.
Okudzeto Ablakwa indicated that the Minority will bring to book persons who facilitated his travel and has urged the people of Ghana to vote out such a government.
SML SCANDAL— WHY IS THE AKUFO-ADDO/BAWUMIA GOVERNMENT PRETENDING THEY HAVEN’T ASSISTED THE GRA BOSS & HIS FAMILY TO RAN OUT OF THE COUNTRY?
Can the Akufo-Addo/Bawumia government stop the despicable deception that they are seriously investigating the SML/GRA scandal.
President Akufo-Addo must immediately offer a sincere explanation to Ghanaians on the circumstances under which the Commissioner-General of the Ghana Revenue Authority (GRA), Rev. Dr. Ammishaddai Adu Owusu-Amoah who signed the dubious SML contract was allowed to travel out of the country with his entire nuclear family less than 24 hours after Akufo-Addo’s 2nd January, 2024 press statement announcing that KPMG has been tasked to carry out an urgent audit into the sleazy affair.
My unimpeachable and irrefutable tracking of Rev. Dr. Ammishaddai Adu Owusu-Amoah reveals that on January 3, 2024, he led his family to swiftly and clandestinely leave the jurisdiction.
Exactly a week ago, the entire Owusu-Amoah family departed at 17:10 on TAP Air Portugal, flight TP 1527 from KIA-Terminal 3.
Rev. Dr. Ammishaddai Adu Owusu-Amoah used an ordinary Ghanaian passport issued on June 14, 2019, with its last four digits being 5283.
Interestingly, the runaway GRA boss did not travel with his Service Passport with 2702 as its last four digits. A Service Passport which was issued to him as GRA Commissioner-General on October 3, 2019. This development adds another layer of confirmation that Rev. Dr. Owusu-Amoah has not embarked on an official trip.
The Owusu-Amoahs’ first travel destination when they left Accra a week ago was São Tomé and Príncipe, and continuous tracking appears to paint a picture of a family in no hurry to return to Ghana, that is if they will ever return.
In the January 2, 2024 press statement from the Akufo-Addo/Bawumia presidency signed by Mr. Eugene Arhin, Ghanaians were informed that “President Akufo-Addo has tasked KPMG to complete the assignment in two weeks, and submit appropriate recommendations to him.”
The release additionally indicated that the “President has directed the Ministry of Finance and GRA to provide KPMG with whatever assistance they will require for conduct of the audit.”
Now here we are, the GRA boss who is to be audited has been surreptitiously assisted to leave the country.
It is also worth noting that KPMG has only about 6 days left to report to the President.
Clearly, President Akufo-Addo’s much touted investigations into the SML scandal is nothing but a sham.
Painstaking investigations further reveal that Rev. Dr. Ammishaddai Adu Owusu-Amoah has told a few very close friends and allies that he will never return to Ghana, particularly after realizing that there’s an elaborate scheme to make him a scapegoat following Manasseh Azure Awuni’s brilliant SML exposé — even though according to Rev. Dr. Ammishaddai Adu Owusu-Amoah, he only carried out the wishes of the same notorious looting cabal.
The NDC Caucus in Parliament shall be demanding an urgent inquiry into how Rev. Dr. Ammishaddai Adu Owusu-Amoah fled Ghana; we shall seek to identify and sanction the conspirators who facilitated his disgraceful escape despite presidential assurances of an urgent high-stakes KPMG audit; we shall be committed to unraveling the subsequent silence, grand deception and attempted cover-up.
Ghanaians must resolve to do all in our power to vote out this fantastically corrupt Akufo-Addo/Bawumia NPP regime in this year’s election.
We must uproot this government of endless monumental embarrassments.
OccupyGhana, a pressure group, has urged President Nana Addo Dankwa Akufo-Addo to permit the Auditor-General to conduct an audit of the contract between the Ghana Revenue Authority (GRA) and Strategic Mobilisation Limited (SML).
Additionally, the group has called for the revocation of the President’s appointment of a private audit firm to carry out the audit and urged compliance with Article 187 concerning the matter.
According to a statement from the group, Article 187 of the Constitution foresees situations where public interest in the financial matters of public auditee institutions, such as the GRA, may necessitate special audits.
The statement emphasised that Article 187(8) specifically stipulates that in such cases, the Council of State should advise the President on the need for an “Article 187(8) Public Interest Audit.”
“Indeed, and in practice, the President may seek and then obtain that advice. Then, the President would request the Auditor-General to conduct the audit.
“This provision in Article 187 is so critical and significant that the Constitution specifically sets it down as the only instance where a President has the power to request the independent Auditor-General to do anything.”
https://www.youtube.com/watch?v=L25o3FE9dmo
The statement from OccupyGhana further emphasised the importance of the Council of State promptly providing advice to the President regarding the matter.
In the event of failure, neglect, or refusal by the Council of State and/or the President to comply with Article 187, OccupyGhana recommended that the Auditor-General initiate and conduct a special audit independently, utilising Section 16 of the Audit Service Act.
While expressing appreciation for the planned parliamentary inquiry and the decision for a public interest audit, OccupyGhana raised concerns about the potential unconstitutionality of the president’s choice of a private audit firm.
The group emphasised the significance of adhering to constitutional provisions to avoid spending resources on an audit that could face legal challenges. OccupyGhana advocated for allowing the Auditor-General to carry out the special audit in accordance with Article 187(8) of the Constitution.
Pressure group OccupyGhana has called on President Nana Addo Dankwa Akufo-Addo to permit the Auditor-General to conduct the audit of the contract between Strategic Mobilisation Ghana Limited (SML) and the Ghana Revenue Authority (GRA).
According to OccupyGhana, the President’s decision to appoint KPMG, a revenue and assurance audit firm, for the task was deemed unconstitutional.
The group asserted that this action overlooks specific provisions intended to address such situations, potentially leaving open avenues for legal challenges.
The Ghana Revenue Authority (GRA) entered into the contract to bolster revenue assurance in the downstream petroleum sector, as well as the upstream petroleum production and the value chain of minerals and metals resources.
However, a media report has questioned the deal which led the President to order an audit by KPMG.
In a statement dated January 5, 2024, the pressure group explained that the 1992 constitution, in article 187, anticipated situations where public interest in the financial matters of public institutions (such as GRA) might require special audits.
“That is why article 187(8) specifically provides that when such matters arise, the Council of State should advise the President that an ‘Article 187(8) Public Interest Audit’ is required.
Indeed, and in practice, the President may seek and then obtain that advice,” it said.
“Then, the President would request the Auditor-General to conduct the audit. This provision in article 187 is so critical and significant, that the Constitution specifically sets it down as the only instance where a president has the power to request the independent Auditor-General to do anything,” the statement explained further.
OccupyGhana, therefore, urged the government not to spend time and money on an audit that might turn out to be unconstitutional and therefore worthless adding that the country loses nothing but gains everything if the Auditor-General was allowed to conduct the audit in accordance with the article stated above.
The Pressure group further opined that allowing the Auditor-General to audit the contract would give him the power to disallow payments found to be contrary to law and then to surcharge any expenditure disallowed upon the person responsible for incurring or authorising the expenditure among others.
“We therefore urge the Council of State to seize the initiative and send its advice to the President forthwith. We also urge the President to revoke the appointment and mandate of the private audit firm, and to comply with article 187 on the matter,” the statement said.
However, it urged the Auditor-General to conduct the special audit on his own motion because he is empowered to do so under section 16 of the Audit Service Act if the President failed to comply with the constitution with regards to the auditing of the contract.
Attached below is a copy of the statement;
OCCUPYGHANA PRESS RELEASE
Accra, 5 January 2024
DEMAND FOR AN ARTICLE 187(8) PUBLIC INTEREST AUDIT BY THE AUDITOR-GENERAL INTO GHANA REVENUE AGENCY AND STRATEGIC MOBILISATION LIMITED CONTRACT
OccupyGhana has seen and read a letter dated 2 January 2023 and emanating from the Office of the President that directs that an audit be conducted into the contract between the Ghana Revenue Authority (GRA) and Strategic Mobilisation Limited (SML). This contract has attracted a lot of public interest in recent days.
While we welcome both a public interest audit and the announced parliamentary inquiry into this matter, we are concerned that the President’s choice of a private audit firm to conduct this audit could be unconstitutional as it ignores direct constitutional provision made and meant to address such situations.
In article 187, the Constitution anticipates situations where public interest in the financial matters of public auditee institutions (such as through GRA) may require special audits. That is why article 187(8) specifically provides that when such matters arise, the Council of State should advise the President that an ‘Article 187(8) Public Interest Audit’ is required. Indeed, and in practice, the President may seek and then obtain that advice. Then, the President would request the Auditor-General to conduct the audit. This provision in article 187 is so critical and significant, that the Constitution specifically sets it down as the only instance where a president has the power to request the independent Auditor-General to do anything.
It is said that ‘if a thing is worth doing, it is worth doing well.’ We should not spend time and money on an audit that may turn out to be unconstitutional and therefore worthless, leaving room for legal challenges. Ghana loses nothing but gains everything if the Auditor-General is allowed to conduct this special audit in accordance with article 187(8) of the Constitution. The several advantages with complying with the constitutional provision include, critically, giving the Auditor-General the opportunity under article 187(7)(b) to disallow payments found to be contrary to law and then to surcharge (1) ‘any expenditure disallowed upon the person responsible for incurring or authorising the expenditure,’ and/or (2) ‘the amount of any loss or deficiency, upon any person by whose negligence or misconduct the loss or deficiency has been incurred.’
We therefore urge the Council of State to seize the initiative and send its advice to the President forthwith. We also urge the President to revoke the appointment and mandate of the private audit firm, and to comply with article 187 on the matter. We finally urge the Auditor-General that if the Council of State and/or the President fail(s), neglect(s) or refuse(s) to comply with article 187, the Auditor-General should commence and conduct the special audit on his own motion as he is empowered to do under section 16 of the Audit Service Act.
The Circuit Court in Accra has remanded Michael Sumnaya Adedina, a 34-year-old accountant with Medeena Consult Limited, into police custody for an unauthorized attempt to collect tax, a violation of Section 75 of the Revenue Administration Act 2016 (Act 915).
The accused is alleged to have forged 39 official payment receipts from the Ghana Revenue Authority (GRA), resulting in a loss of over GHc2.4 million to the state.
He was arraigned on seven counts namely forgery of an official document contrary to section 158 of the Criminal Offences Act 1960 (Act 29), stealing contrary to Section 124(1) of the Criminal Offences Act 1960 (Act 29) and fraudulent breach of trust contrary to section 128 of the Criminal Offences Act 1960 (Act 29) and making false or misleading statements contrary to section 74 of the Revenue Administration Act 2016 (Act 915).
The accused pleaded not guilty to all the counts and had been remanded to reappear on January 17, 2024.
His lawyers had prayed the court to admit him to bail on grounds that, he has sureties of independent means to ensure he avails himself to stand trial.
But his request was opposed by the prosecution on grounds that the accused is likely to interfere with investigations.
The Court presided over by Mrs Afua Owusua Appiah struck out two of the counts including Impeding tax administration because they did not support the charges.
Brief facts:
Per the brief facts of the case as presented to the Court by the prosecutor, DSP Evans Kesse, the complainant in the case is the country manager for BMG Infrastructure Company Limited located at Tarkwa in the Western Region.
He said the company was a foreign-owned company registered with the Ghana Investment Promotion Centre (GIPC established in the aforesaid area in 2021 and it is into mining Waste processing.
According to him, the accused person approached the complainant and introduced himself as a professional accountant, who could prepare all their accounts and represent their interests professionally.
Consequently, the company outsourced the services to the accused person in all matters relating to accounting, including statutory payments and the preparation of various tax types with the Ghana Revenue Authority and the Social Security and National Insurance Trust for its employees.
After each payment, ASP Kesse said, the accused person furnished official receipts to the complainant from the Ghana Revenue Authority (GRA) as proof of payment.
He told the court that, on May 31, 2023, the GRA conducted a tax audit into the activities of BMG Infrastructure Limited and detected a tax liability of GH¢2,495,778.00 against the company, which raised suspicion.
The prosecutor said consequently, the Company launched investigations to find out the cause of that huge liability.
ASP Kesse said during investigations, they gathered that the accused person had over the period failed to pay all the monies he collected from BMG as taxes to GRA.
He said, a report was made to the GRA through GIPC with the corresponding receipts for verification and it was realised that the accused person had been forging the GRA official receipts.
The prosecutor said that following this worrying development, an official complaint was made on December 29, 2023, to the investigation wing of GRA and the accused person was arrested for investigations.
During interrogation and in his caution to the Police, the accused admitted the offence and said, he downloaded the GRA payment receipts from PDF to Word and edited them to insert the tax figures and presented the forged receipts to the complainant as though genuine taxes had been paid.
He disclosed that he used part of the money to buy concessions for mining purposes, which went bad and that he used part of the money to buy a Toyota Hilux pickup at the cost of GH$ 650, 000.00 and a Lexus SUV vehicle at the cost of GHS 550, 000.00.
He further stated that he used some of the proceeds to put up a four-bedroom self-contained house at Tarkwa Aboso.
Further investigation is ongoing to identify these assets for action.
Strategic Mobilisation Ghana Ltd (SML), in a resolute stance, has asserted its confidence in the forthcoming audit, mandated for its contract with the Ghana Revenue Authority (GRA) and the Finance Ministry.
SML has expressed the belief that the investigation will ultimately validate the integrity of the deal.
SML is optimistic that the upcoming report from KPMG, the firm entrusted with conducting the audit, will showcase the contract’s integrity in safeguarding the state’s revenue.
In a press statement issued on Wednesday, January 3, SML welcomed the audit directive and assured full compliance.
The statement emphasised the company’s anticipation of the audit proving the legitimacy and efficacy of its dealings with the GRA and the Ministry of Finance.
“We welcome the directive and the decision to appoint KPMG to conduct an immediate audit of the contract.
“SML awaits the results of the audit, as it will help establish a clear and accurate picture of our operations. We remain resolute in upholding the highest business standards and welcome the scrutiny that this audit would bring.”
“We are confident that the findings will confirm the integrity of our collaboration with GRA and the Ministry of Finance and provide ample evidence of the value we provide citizens,” SML said.
The audit was ordered by President Akufo-Addo on Tuesday, January 2, with KPMG appointed to conduct the audit within a two-week timeframe.
Specific terms of reference for the audit were outlined in a press statement from the Presidency issued by Communications Director Eugene Arhin.
In December 2023, The Fourth Estate published an investigative piece implicating Strategic Mobilisation Ghana Ltd. (SML), the Ghana Revenue Authority (GRA), and the Ministry of Finance.
The report accused GRA of awarding SML a 10-year contract, generating $100 million annually, and raised concerns about alleged underhand dealings.
Following the report, SML refuted claims of a 10-year contract, asserting that it was awarded a 5-year contract instead. Additionally, SML denied allegations of receiving $100 million annually from its contract.
On Wednesday, December 20, 2023, the Ghana Revenue Authority issued a statement affirming that its board and management had followed the correct processes in procuring the services of SML.
The situation continues to unfold, with conflicting statements from the involved parties. We will continue to monitor and report on further developments.
Ghana Revenue Authority has provided reasons for the delay in implementing five tax bills passed by Parliament in 2023.
Parliament passed five new tax bills, including the VAT Amendment Bill, which could lead to a more than 30% increase in motor insurance this year; the Emission Levy, which imposes an additional annual charge of 100 cents on petroleum and diesel car owners; and the Betting Tax, before their December 2023 break.
However, the Commissioner General of the GRA, Rev. Dr. Ammishaddai Owusu-Amoah, explained that certain conditions must be fulfilled before enforcement can take place.
“Normally, once Parliament has approved the bill, there could be some amendments and changes in the approval process. So even though our team has put together patterns for the approval processes, we cannot put them out until the final bill is given to us.”
“If you implement it and there are changes to be made, you have to go back and make all those changes.
“That is why we need to wait. The aim was to start on January 1, 2024, but we need to wait for the final bill,” Rev. Dr. Ammishaddai Owusu-Amoah said on Rainbow Radio Accra.
Honorary Vice President of IMANI-Africa, Bright Simons, has called on KPMG, a global professional services firm, to reconsider and reject President Akufo-Addo’s directive to audit the SML/GRA contract.
The directive, issued by the President, seeks an extensive examination of the contract between the Strategic Mobilization Limited (SML) and the Ghana Revenue Authority (GRA).
Simmons, known for his unwavering commitment to good governance and ethical business practices, contends that the audit may compromise the independence and integrity of KPMG, given the political sensitivity surrounding the contract.
In a Tweet made on January 2, 2023, Mr Simons said: “KPMG’s practice oversight bosses should prudently preserve the firm’s reputation & drop this assignment. This issue is a hot political potato right now. The nature of the allegations requires an IN-DEPTH look by state bodies with the RIGHT POWERS & INDEPENDENCE. KPMG has neither.”
His comments follow President Akufo-Addo’s directive to the KPMG to carry out a full blown audit into the contract.
The President’s directive also follows an investigative piece by the Fourth Estate on what it terms as a shady deal between the SML Ghana and the Ghana Revenue Authority (GRA).
The President’s action comes after an investigation by The Fourth Estate revealed that SML had been awarded contracts that entitles the company to more than $100 million every year.
The company admitted it was not performing the advertised services that claimed to tackle under-reporting, diversion and dilution when the investigative journalists confronted it with evidence. It has since deleted those claims from its website.
The Managing Director of SML, Christian Tetteh Sottie, also admitted that the company’s claim that its services had saved Ghana GHS3 billion was false.
The directive reflects a commitment to ensuring transparency and accountability in the execution of the GRA’s contractual agreement with SML.
“The President of the Republic, Nana Addo Dankwa Akufo-Addo, has appointed KPMG, the reputable Audit, Tax and Advisory Services firm, to conduct an immediate audit into the transaction between the Ghana Revenue Authority (GRA) and Strategic Mobilisation Ghana Ltd (SML), a contract which was entered into to enhance revenue assurance in the downstream petroleum sector, the upstream petroleum production and minerals and metals resources value chain,” an excerpt of the release said.
President Akufo-Addo further instructed the Ghana Revenue Authority (GRA) and the Ministry of Finance to adhere to his directive and furnish KPMG with all necessary documentation for the upcoming audit.
Minority Leader, Dr. Cassiel Ato Forson, has declared that President Akufo-Addo’s directive for the Ghana Revenue Authority (GRA) and Strategic Mobilisation Limited (SML) to suspend their contract comes belatedly.
Dr Forson’s remarks add a sharp perspective to the unfolding developments, suggesting a sense of urgency that has long been overdue in addressing the contentious contract between GRA and SML.
This development follows President Akufo-Addo’s recent decision to appoint KPMG for an urgent audit of the transaction between the Ghana Revenue Authority (GRA) and Strategic Mobilisation Limited (SML). The move underscores a heightened commitment to scrutinizing the intricacies of the GRA-SML transaction, adding a layer of urgency to the unfolding situation.
A contractual agreement aimed at bolstering revenue assurance within the downstream petroleum sector, upstream petroleum production, and the value chain of minerals and metals resources.
President Akufo-Addo has set a tight two-week deadline for KPMG to fulfill the assigned task, directing the audit firm to submit pertinent recommendations upon completion. This decisive move signals a swift and time-sensitive approach to address the ongoing situation.
In a concise statement, the Minority leader characterized the President’s action as an endeavor to whitewash the contract under the guise of an audit.
“This whitewashing attempt by the President in the name of an audit will not dissuade Parliament from looking into this matter to stop the siphoning of state resources into the private pockets of government officials and their crony business partners,” Dr. Ato Forson stated.
Below is the statement by the Minority Leader Dr Ato Forson
President Akufo-Addo’s appointment of KPMG to audit the so-called revenue assurance agreement between Ghana Revenue Authority (GRA) and Strategic Mobilisation Limited (SML) has come too late in the day.
Parliament has already directed the Finance Committee to audit the infamous agreement and the Committee is actively seized of the matter.
The President, who should have led this fight in the wake of this scandal, is playing catch up since Parliament has also directed GRA to suspend all payments to SML.
This whitewashing attempt by the President in the name of an audit will not dissuade Parliament from looking into this matter to stop the siphoning of state resources into the private pockets of government officials and their crony business partners.
The Ghana Revenue Authority (GRA) has revealed its imminent pursuit of overseas accounts belonging to Ghanaians who are reportedly evading tax obligations. This forthcoming initiative underscores the GRA’s commitment to ensuring tax compliance among Ghanaian citizens residing abroad.
Following comprehensive investigations into the financial activities of Ghanaians residing in 40 countries, the Ghana Revenue Authority (GRA) has announced its intention to take action on accounts after scrutinizing 70,000 such accounts. This move signifies the authority’s proactive measures to address potential tax non-compliance among Ghanaians living abroad.
Commissioner General of the Ghana Revenue Authority, Rev. Dr. Ammishaddai Owusu-Amoah, disclosed this on PM EXPRESS BUSINESS EDITION.
“For the 40 countries that we have completed work, the value of money in these accounts are pegged at $2.8 billion”, he stated.
“However, the Ghana Revenue Authority has been able to raise a tax liability of ¢1.6 billion. This is an assessment, but doesn’t mean that we have already collected the taxes on these accounts”, the GRA Boss added.
Rev. Dr. Ammishaddai Owusu-Amoah pointed out that this was based on work done in two months by the GRA.
The Commissioner General also revealed that his outfit is expecting another set of data to come in the first week of January 2024, which could also improve the inflows expected.
Reasons and legal basis by GRA
The Commissioner-General of the GRA said it is getting information from the Organization for Economic Co-operation and Development (OECD) Agreement on automatic exchange of information with member countries and the exchange of information on request.
According to him, 150 countries including Ghana have signed up to this agreement by the OECD, which allows member countries to share information based on request and the automatic sharing of information. The agreement allows Ghana to share information with member countries
“This means that Ghana can go to UK and ask for information on Ghanaians resident in that country and the UK can also request that GRA shares information on their residents in Ghana”, Dr Owusu-Amoah pointed out.
The development, he added, will also help in checking money laundering as well.
“Ghana is one of the 5th countries in Africa in which in 2022 managed to satisfy all the conditions to be part of the OEDC agreement on sharing data for tax purposes on residents in their countries,” the GRA Boss revealed.
What will happen to residents in Ghana who don’t cooperate?
Rev. Dr. Ammishaddai Owusu-Amoah furthered that persons who fail to meet their tax obligations will be given some time to comply with the GRA.
However, failure to do so will result in the Authority going ahead to apply the necessary penalties.
GRA and Foreign Nationals and Businesses in Ghana
The Commissioner General also revealed that the Authority will soon roll out a Special Voluntary Disclosure Program (SVDP) for foreign nationals and businesses in the country.
This will allow foreign nationals in Ghana, including individuals and businesses to voluntarily disclose any unreported or underreported information related to their financial activities outside Ghana for tax purposes.
The initiative is coming under the Multilateral Competent Authority Agreement (MCAA) and the Standard for Automatic Exchange of Financial Account Information in Tax Matters Act, 2018 (Act 967).
Rev. Dr. Ammishaddai Owusu-Amoah also explained that the Voluntary Disclosure Programme encourages participants to voluntarily disclose their errors or omissions and may be eligible for a reduction in penalties that would typically apply to such violations.
He also added that “All information provided under the Voluntary Disclosure Programme will be treated with utmost confidentiality, whilst stringent protocol measures have been put in place to protect the security and privacy of your data.
Ghana Revenue Authority (GRA) has announced its intention to pursue the accounts of Ghanaians residing abroad who are not fulfilling their tax obligations.
This decision comes following the examination of 70,000 accounts belonging to Ghanaians in 40 different countries.
Revealing this information, Rev. Dr. Ammishaddai Owusu-Amoah, the Commissioner General of the Ghana Revenue Authority, shared these details during an episode of PM Express Business Edition with host George Wiafe.
“For the 40 countries in which we have completed work, the value of money in these accounts is pegged at $2.8 billion,” he stated.
“However, the Ghana Revenue Authority has been able to raise a tax liability of $1.6 billion.
This is an assessment, but that doesn’t mean that we have already collected the taxes on these accounts, the GRA boss added.
Rev. Dr. Ammishaddai Owusu-Amoah emphasised that this initiative is the result of two months of work conducted by the GRA.
The Commissioner General further disclosed that his department anticipates receiving additional data in the first week of January 2024, potentially enhancing the anticipated revenue inflows.
Reasons and legal basis by GRA
The Commissioner-General of the GRA stated that the organisation is obtaining information through the Organisation for Economic Co-operation and Development (OECD) Agreement.
This agreement involves both the automatic exchange of information among member countries and information exchange upon request.
He explained that 150 countries, including Ghana, have endorsed this agreement facilitated by the OECD. It enables member countries to share information either through requests or automatically. This agreement empowers Ghana to engage in the reciprocal sharing of information with other member countries.
“This means that Ghana can go to theUK and ask for information on Ghanaian residents in that country and the UK can also request that GRA share information on their residents in Ghana,” Dr. Owusu-Amoah pointed out.
The development, he added, will also help in checking money laundering.
“Ghana is one of the 5th countries in Africa that, in 2022, managed to satisfy all the conditions to be part of the OEDC agreement on sharing data for tax purposes on residents in their countries,” the GRA Boss revealed.
What will happen to residents in Ghana who don’t cooperate?
Rev. Dr. Ammishaddai Owusu-Amoah added that individuals failing to meet their tax obligations would be granted a grace period to comply with the GRA. However, if they fail to do so within the stipulated time, the Authority will proceed to impose the necessary penalties.
In addition, the Commissioner General disclosed that the GRA is set to launch a Special Voluntary Disclosure Program (SVDP) tailored for foreign nationals and businesses operating in Ghana.
Under this program, foreign individuals and businesses in the country can voluntarily disclose any unreported or underreported information regarding their financial activities outside Ghana for tax purposes.
This initiative operates within the framework of the Multilateral Competent Authority Agreement (MCAA) and the Standard for Automatic Exchange of Financial Account Information in Tax Matters Act, 2018 (Act 967).
Rev. Dr. Ammishaddai Owusu-Amoah clarifiedthat the Voluntary Disclosure Programme encourages participants to voluntarily disclose any errors or omissions, with the potential for a reduction in the penalties that would typically be applied to such violations.
He also added that “All information provided under the Voluntary Disclosure Programme will be treated with utmost confidentiality, whilst stringent protocol measures have been put in place to protect the security and privacy of your data.
