Ghana has saved over 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. The Office of the Special Prosecutor (OSP) announced these savings in an addendum to an earlier statement, building on GHS 1.2 billion already saved from terminating the main SML contract. The additional savings stem from avoiding payments for crude oil and gold export monitoring services, which were never implemented.

Had these contracts proceeded, they would have imposed significant costs on the State. A variable fee tied to crude oil exports would have totaled 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 never began operations in these sectors, as the arrangement coincided with an ongoing KPMG audit and criminal investigations launched by the OSP. Consequently, President Akufo-Addo ordered the termination of the agreement earlier this year.

Detailed Cost Breakdown

• Crude Oil: With Ghana exporting an estimated 3.85 million barrels monthly and SML’s fee at US$0.75 per barrel, payments would have been US$2.89 million monthly, US$34.65 million annually, and US$173 million over five years.

• Gold Exports: Valued at over GHS 5.8 billion monthly, a 0.75% service fee would have cost GHS 43.7 million monthly and GHS 525 million annually.

The OSP emphasized that halting these contracts protected the nation from further financial burdens while investigations into the deal’s awarding continue.

Key Arrest in Ongoing Probe

In a major development, the OSP has arrested Freeman Sarbah, acting Head of Legal at the Ghana Revenue Authority (GRA), as part of its intensified investigation into the GRA–SML contract. Mr. Sarbah faces serious charges, including:

• Corruption and corruption-related offenses,

• Obstruction of justice.

This arrest highlights the OSP’s focus on senior public officials allegedly involved in the procurement and cover-up of the unlawful, financially damaging contract.

The obstruction of justice charge is particularly significant, given the OSP’s prior findings of severe lack of transparency by the GRA. The authority failed to provide complete agreements between SML and its third-party partners, a breach of governance standards. Mr. Sarbah’s arrest signals that the OSP is now pursuing criminal action against officials suspected of impeding its probe into a deal secured through “self-serving official patronage based on false and unverified claims.”

Broader Investigation Findings

The OSP’s ongoing probe has uncovered critical irregularities:

• SML received over GH¢1.4 billion from the Republic by December 2024, payments made on automatic mode, detached from actual performance and without effective GRA oversight.

• The contracts were irregular and unlawful:

  • Awarded without Public Procurement Authority (PPA) approval,

  • Lacked parliamentary approval for multi-year commitments.

Violations include:

• Section 179C of the Criminal Offences Act (using public office for profit),

• Section 92(2b) of the Public Procurement Act (influencing procurement for unfair advantage).

Mr. Sarbah’s arrest is part of a wider crackdown. The OSP has identified a “tightly knit and non-coincidental association of events,” suggesting an orchestrated plan. Several former senior GRA officials—including past Commissioners-General and Commissioners of Customs, have already been detained or investigated for facilitating the unlawful contracts.

The OSP’s pursuit of accountability, now reaching a sitting Head of Legal, demonstrates its resolve to investigate and prosecute all individuals, regardless of rank, found responsible for causing financial loss to the state.