Strategic Mobilisation Ghana Limited (SML) says it is a company providing revenue assurance and auditing services to the government of Ghana in the downstream petroleum sector through the Ghana Revenue Authority (GRA).
This, according to the Information Technology (IT) Systems Engineer of SML, Prince Sarpong, was done through installation of ultrasonic flow meters at all 22 loading points of the oil depots in the country to detect under-declaration, diversion and dilution of petroleum products by the Oil Marketing Companies (OMCs).
During a familiarisation tour of the SML facility, with the media yesterday, Mr Sarpong said the revenue assurance bid of SML was done through recording and reporting the volumes of petroleum products lifted from the depots on which tax is computed.
By this, Mr Sarpong said SML as a revenue assurance company, needed to assure GRA of the accuracy of volumes that were reported by the OMCs lifting the products from the Bulk Distribution Companies (BDCs) on which taxes needed to be paid.
In achieving that, the SML had also installed a non-intrusive system that would not interfere with the depots’ operations, limiting its operations to only the downstream operations of petroleum products.
Mr Sarpong said, SML was well-positioned to monitor the orders in the Enterprise Relational Database Management System (ERDMS) that eventually came to the Integrated Customs Management System (ICUMS) where revenue is paid.
He said by that intervention, the average lifting of petroleum products shot up from about 350 million litres per month in the year 2015-2018 to about 450 million litres for three major products namely diesel, petrol and liquefied petroleum gas (LPG) during the initial operations of SML in 2020 indicating a tax recovery of about 100 million litres of fuel products.
Also, Mr Sarpong stated that an Automatic Tank Gauging (ATG) system were being installed at all depots across the country to tell the volume of products in the tanks, eliminating the phenomenon of Customs officials climbing the tanks to detect the volumes.
Commenting on the alleged inaccuracies of their ultrasonic flow meters, Head Engineering at the SML, Hamdana Bukari, explained that the technical data sheet of the meters confirmed their accuracy level calibrated by the Ghana Standards Authority (GSA) semi-annually.
Meanwhile, in reaction to a documentary by The Fourth Estate on the yet to be operationalised contract on upstream petroleum production and minerals and metals resources value chain, the company said the documentary currently been aired, represents a set of misrepresentations, false claims, and a general lack of understanding on the entire operations of SML.
“We challenge Fourth Estate to produce any contract anywhere that is for a 10-year period. The 5th PPA Board at its 46th Board meeting in a letter referenced PPA/ CEO/09/2286/23 approved a contract duration of five years.
“Again, it’s NOT TRUE that SML takes $100 million annually from its contract. The upstream operations of the company has not yet begun, and no revenue has been realised. No monies have been paid to SML; the $100 million per year payment to SML that has been alleged is purely a figment of the author’s imagination and not factual,”
SML’s engagements with GRA is solely a risk reward contract. GRA invests nothing in the entire investment chain. There is no cost commitment from the GRA. SML is not exempted from the payment of duties and taxes, a statement issued by the company’s Public Relations Department has added.
FROM KEN AFEDZI, TEMA STRATEGIC
