Ghana has realized substantial financial savings exceeding GHS 2.6 billion and US$173 million following the cancellation of the upstream and mineral sector components of the Strategic Mobilisation Ghana Limited (SML) revenue assurance deal. This announcement by the Office of the Special Prosecutor (OSP) comes as an addendum to an earlier statement, building upon the GHS 1.2 billion already saved from the termination of the main SML contract. The additional savings are attributed to avoiding payments for crude oil and gold export monitoring services, which were never implemented.

These contracts, if allowed to proceed, would have imposed significant costs on the State. Specifically, a variable fee structure linked to crude oil exports would have amounted to approximately US$173 million over five years, while gold exports would have incurred GHS 2.6 billion over the same period. The OSP noted that SML did not commence operations in these sectors because the arrangement coincided with an ongoing KPMG audit and criminal investigations initiated by the OSP. Consequently, President Akufo-Addo ordered the termination of the agreement earlier this year.

Detailed analysis by the OSP reveals the magnitude of the potential costs. Ghana's estimated crude oil exports of 3.85 million barrels per month, with SML's fee set at US$0.75 per barrel, would have translated into monthly payments of about US$2.89 million, accumulating to US$34.65 million annually and US$173 million over five years. Similarly, monthly gold exports valued at over GHS 5.8 billion would have attracted a 0.75% service fee, costing the State GHS 43.7 million monthly and GHS 525 million annually. The OSP emphasized that halting these contracts protected the country from further financial burdens while investigations into the awarding of the deal continue.

In a related and significant development, the OSP has confirmed the arrest of Freeman Sarbah, the acting Head of Legal at the Ghana Revenue Authority (GRA), as part of its intensified investigation into the controversial GRA–SML contract. Mr. Sarbah faces multiple grave charges, including suspected corruption and corruption-related offenses, and importantly, obstruction of justice. This arrest underscores the OSP's heightened focus on key public officers believed to be involved in the procurement and alleged cover-up of the unlawful and financially detrimental contract.

The charge of obstruction of justice against the GRA's top legal officer is particularly noteworthy, given the OSP’s prior findings highlighting a profound lack of transparency from the GRA. The OSP had established that the GRA failed to provide complete agreements between SML and its third-party partners, which was deemed a breach of transparency and governance standards. Mr. Sarbah's arrest suggests the OSP is now pursuing criminal action against officials suspected of impeding its probe into the origins and execution of the deal, which the OSP has characterized as being secured through “self-serving official patronage based on false and unverified claims.”

The OSP's ongoing probe into the financial scale and legal irregularities surrounding the SML contracts has uncovered several critical issues. The investigation established that SML received a staggering total of over GH¢1.4 billion from the Republic by December 2024. Crucially, these payments were reportedly made on an automatic mode, detached from actual performance and without effective supervision by the GRA. Furthermore, the contracts themselves were deemed irregular and unlawful, having been initially awarded without the required approval of the Public Procurement Authority (PPA) and lacking the necessary parliamentary approval for multi-year contracts.

The findings also revealed clear violations of multiple statutory provisions, including Section 179C of the Criminal Offences Act (prohibiting using public office for profit) and Section 92(2b) of the Public Procurement Act (forbidding influencing procurement processes to obtain an unfair advantage). Mr. Sarbah's arrest is part of a broader crackdown on senior officials connected to the SML scandal. The OSP's investigation has uncovered a “tightly knit and non-coincidental association of events,” strongly suggesting an “orchestrated plan.” Several former senior GRA officials, including past Commissioners-General and Commissioners of Customs, have previously been detained or investigated in connection with their roles in facilitating the unlawful revenue assurance contracts. The OSP’s relentless pursuit of accountability, culminating in the arrest of a sitting Head of Legal, underscores its commitment to thoroughly investigate and prosecute all individuals, regardless of their position, who are found culpable in causing financial losses to the state.