SML Contract Fiasco: Hosi Says Bawumia Exclusion Could Have Prevented Losses

Economist and policy analyst Senyo Hosi has stated that the controversy surrounding the contract between Strategic Mobilisation Ghana Limited (SML) and the Ghana Revenue Authority (GRA) could have been avoided if Dr. Mahamudu Bawumia, the former Vice President, had been actively involved in the decision-making process.

His comments follow the release of a report by the Office of the Special Prosecutor (OSP), which found that the SML contracts were unnecessary, unlawfully approved, and financially harmful to the state. The OSP concluded that the GRA-SML deal was characterised by “self-serving official patronage, sponsorship and promotion on false and unverified grounds,” and that key procurement and auditing procedures were ignored. Payments to SML reportedly proceeded automatically, detached from verified work performance, resulting in significant losses to the Republic.

Speaking on The Big Issue on Saturday, November 1, Hosi remarked that had Dr. Bawumia been properly consulted, several irregularities could have been prevented. He also claimed that the deal was arranged by then-Finance Minister Ken Ofori-Atta, his associates, and an SML executive, Evans Adusei, without Bawumia’s endorsement.

SML Contract

The SML controversy highlights persistent governance and accountability challenges within Ghana’s public financial management system. The GRA, as the nation’s chief tax authority, plays a crucial role in mobilising domestic revenue. Ensuring transparency and value for money in such contracts is therefore essential to sustaining public trust and strengthening Ghana’s fiscal stability.

For Africa more broadly, the case mirrors wider concerns over weak procurement oversight and opaque public-private partnerships in resource-dependent economies. Across the continent, such contracts often lead to lost revenues and deepen mistrust between citizens and their governments.

The SML contract was initially awarded to provide revenue-assurance and audit services for Ghana’s petroleum, minerals, and fuels sectors. Investigative reports and subsequent audits raised questions about SML’s competence and whether the proper procurement processes had been followed.

According to the OSP, SML lacked the infrastructure and technical capacity required to execute the contract effectively. The GRA allegedly failed to provide complete documentation for review, while payments to SML continued on an “automatic mode,” detached from actual performance metrics.

Senyo Hosi argued that Bawumia’s exclusion from key government decision-making limited oversight and allowed irregularities to flourish. “If your government had worked well with the [former] Vice President and given him a proper place, a lot of these things wouldn’t have happened,” Hosi said.

He further claimed that the deal was primarily coordinated by Ken Ofori-Atta, his associates, and SML’s Evans Adusei. Hosi alleged that Adusei’s name was notably missing from some of the official records associated with the agreement.

While Hosi’s comments have attracted attention, there is no independent verification that Bawumia publicly rejected or formally opposed the SML arrangement. However, the suggestion that stronger internal coordination might have prevented mismanagement has fueled renewed debate over accountability within government structures.

Prior to the OSP’s findings, the GRA had credited SML’s operations with a rise in reported downstream petroleum volumes—from around *350 million litres per month to 450 million litres—and an additional *GH¢3 billion in revenue over two years.

However, the OSP’s investigation disputed these claims, noting that they were either exaggerated or unsupported by evidence. The report also revealed that the GRA failed to deduct GH¢13.38 million in taxes from payments made to SML, with an additional GH¢18.8 million in penalties still outstanding.

These revelations suggest that although the SML partnership was presented as a success story in boosting revenue, the governance flaws surrounding its approval and monitoring may have ultimately negated the intended benefits.

If Hosi’s assertions are accurate—that greater involvement by Dr. Bawumia could have prevented the scandal—it raises important questions about how power and oversight are distributed within Ghana’s executive structure. More broadly, it underscores the need for institutional reforms to ensure transparency, strict procurement compliance, and independent performance evaluation in public contracts.

For Ghana, the SML case serves as a reminder that even well-intentioned initiatives can lead to major financial losses if not guided by clear accountability and oversight mechanisms. Strengthening checks and balances in revenue-related contracts will be crucial to restoring public confidence and preventing similar controversies in the future.

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