Ghana reports saving 2.7 billion dollars after SML contract cancelled

Ghana’s decision to terminate the contract between the Ghana Revenue Authority (GRA) and Strategic Mobilisation Ghana Limited (SML) has resulted in what the Office of the Special Prosecutor (OSP) describes as a major financial win for the country. According to updated assessments, Ghana has already prevented the potential loss of approximately 2.7 billion dollars, money that would have been paid to the private company over the duration of the controversial deal. This development has intensified national debate on procurement processes, public financial oversight, and the appropriate use of partnerships in revenue assurance.

The SML contract, which focused on monitoring downstream petroleum operations, was originally presented as a revenue-enhancing arrangement to seal leakages within the oil sector. However, investigations and public scrutiny revealed that the financial commitments attached to the agreement were substantial, long-term, and in some cases unclear. The OSP’s report concluded that Ghana stood to save billions by discontinuing the contract and redirecting resources into strengthening existing state monitoring systems.

According to officials familiar with the review, the cancellation helps protect public funds at a time when Ghana is working to stabilize the economy, address debt vulnerabilities, and rebuild confidence in public financial administration. The revelation of how much the country would have spent over time has renewed conversations about the need for transparent procurement and the careful evaluation of public-private partnerships, especially those involving revenue collection.

The OSP emphasized that the savings represent more than money withheld from payments. They also symbolize an important step toward enforcing accountability, preventing misuse of state resources, and ensuring that contracts signed on behalf of the nation deliver measurable value. The office noted that the contract lacked certain performance indicators, raising questions about whether its cost obligations aligned with expected benefits.

Stakeholders in civil society have welcomed the development, with several anti-corruption organizations saying the cancellation should serve as a lesson for future administrations. They argue that state institutions must invest in in-house capacity so that critical national operations like revenue monitoring are not outsourced unnecessarily. Others believe the episode highlights gaps in oversight and underscores the importance of involving technical experts before multimillion-dollar contracts are signed.

Economists reviewing the OSP’s findings say the savings will contribute indirectly to fiscal stabilization, especially as Ghana works with international partners to rebuild macroeconomic credibility. They note that preventing wasteful expenditure is just as important as raising new revenue, particularly in periods of financial constraint.

The Ministry of Finance has not yet announced whether the functions previously assigned to SML will be reassigned, automated, or absorbed by existing departments. However, sources say ongoing reforms at the GRA are likely to include modern digital monitoring tools that offer real-time visibility without the need for major external contracts.

This episode has also revived discussions about the role of procurement guidelines, the scrutiny of sole-sourced contracts, and the need for stronger legal frameworks to prevent the signing of agreements that lock the country into long-term financial obligations without adequate justification. Policy analysts have recommended the establishment of an independent contract-review panel to evaluate high-value agreements before they receive approval.

The OSP’s findings may also influence wider public sector reforms, especially in agencies responsible for tax collection, extractives monitoring, and licensing. Many observers believe this could be the turning point that drives the government to strengthen internal systems rather than outsource essential duties.

Members of the public have expressed mixed reactions: while some are relieved that the contract cancellation prevented potential financial loss, others want clarity on how such an agreement was approved in the first place. Several social commentators have called for follow-up investigations to ensure accountability and prevent similar situations from recurring.

Overall, the revelation that Ghana saved approximately 2.7 billion dollars by halting the SML contract is a major development in the country’s fight for better governance and financial discipline. It highlights the importance of transparency, due diligence, and institutional capacity building at a time when every cedi counts toward national recovery. As discussions continue, many expect the government to take further steps to reinforce accountability, strengthen monitoring systems, and safeguard public resources for long-term national growth.