AI Customs Deal Ignites Firestorm: GRA's Publican System Under Scrutiny Amid GH¢11bn Leakage Claims

Published 1 day ago4 minute read
Pelumi Ilesanmi
Pelumi Ilesanmi
AI Customs Deal Ignites Firestorm: GRA's Publican System Under Scrutiny Amid GH¢11bn Leakage Claims

Ghana has experienced significant financial leakages at its ports, with the Commissioner-General of the Ghana Revenue Authority (GRA), Anthony Sarpong, revealing a loss of over GH¢11 billion in revenue due to under-declaration and other irregularities. This alarming situation, identified after a five-year review of past data, was largely attributed to incorrect declarations concerning country of origin, classification of goods, and valuation. Mr. Sarpong also exposed collusion among shipping line staff, customs officers, and importers, a scheme facilitated by extensive human involvement and discretion within the previous system.

To combat these substantial losses and enhance revenue mobilization, the GRA introduced the Publican AI system. This automated tool aims to reduce human interference and improve the accuracy of duty assessments by leveraging AI to examine country of origin, classification, and valuation. Mr. Sarpong noted that earlier assessments based on manual checks could not capture the full extent of the problem, but the Publican AI system has provided crucial insights. For instance, in February, out of over 6,000 import declarations analyzed, 25% were flagged, indicating potential daily revenue losses of approximately $3 million. This translates to more than GH¢1 billion in monthly potential losses, a figure that could be even higher during busier periods.

Addressing concerns about its functionality, Mr. Sarpong clarified that the Publican AI system does not determine the value of imported goods but rather flags suspicious declarations for further review. It identifies risks, such as goods from high-risk countries for narcotics or instances where declared values fall outside reasonable global real-time price ranges. If an importer's declared value is within the system's acceptable range, it receives a 'green light.' However, values outside this range are flagged for customs officers to investigate. While the system highlights anomalies, it acknowledges that valid explanations for lower prices, such as better negotiated deals or pre-approved pricing arrangements for large volume importers, can be upheld. The final decision on valuation remains with customs officers, ensuring a balance between automation and human oversight.

The GRA has also reassured importers and clearing agents that the Publican AI system will not introduce any additional charges or taxes. Mr. Sarpong emphasized that the government is funding the system's implementation as part of its efforts to improve efficiency and facilitate trade, asserting that no cost is passed on to users. He underscored that only Parliament can impose taxes, and no new laws have been passed to alter import duties in connection with the AI tool. Furthermore, Mr. Sarpong suggested that improved compliance, facilitated by the AI system, could create opportunities for future duty reductions, benefiting legitimate businesses by ensuring fair competition and correcting market distortions.

While the system promises significant improvements, its implementation has not been without debate. The Importers and Exporters Association of Ghana (IEAG), which initially expressed concerns in 2025 regarding stakeholder consultation, data security, transparency, and system integration, has since reaffirmed its support. Following constructive engagements with the Ministry of Finance and GRA, the IEAG now unequivocally backs the Publican AI system, acknowledging initial operational challenges as typical for large-scale technological reforms. They foresee benefits such as reduced revenue leakages, enhanced transparency, and minimized unethical practices.

Conversely, former Member of Parliament for Effia, Joseph Cudjoe, has strongly advocated for the immediate cancellation of the Publican AI Customs System contract with Truedare Investments Limited. Mr. Cudjoe labeled the arrangement as opaque and potentially costly, citing estimates of annual payments ranging from GH₵2.8 billion to GH₵3.95 billion based on a revenue-sharing model. He questioned whether these payments represent genuine incremental gains and raised concerns about engaging a foreign private vendor despite Ghana's growing local digital capacity. Mr. Cudjoe also warned of a moral hazard, fearing that a revenue-based compensation model could encourage aggressive tax collection practices, putting undue pressure on traders and consumers. He supported calls for full disclosure of the contract, following reports of denied access under the Right to Information Act.

Despite these criticisms, Mr. Sarpong rejected claims that the Publican AI system is slowing down trade, asserting it significantly improves efficiency. He noted that processing import declarations now takes approximately five minutes, a drastic reduction from the two hours required by the manual system. He acknowledged initial implementation challenges, particularly with importers struggling to correct flagged discrepancies, but confirmed these bottlenecks were resolved by instructing customs officers to assist with corrections. Moreover, he clarified that an active 24-hour appeals process remains in place, with an added 'Supreme Court' layer for further dispute resolution, ensuring fairness and transparency. Mr. Sarpong affirmed that early issues have been largely resolved, and the system is contributing to a fairer business environment by ensuring everyone pays appropriate taxes, ultimately benefiting legitimate businesses and the nation's revenue collection efforts.

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