President Mahama orders immediate termination of All gov’t contracts with SML

President John Mahama has directed the immediate cancellation of all contracts between the Government of Ghana and Strategic Mobilisation Ghana Limited (SML) after the Office of the Special Prosecutor (OSP) concluded its investigation into the controversial deal.

The directive, contained in a letter signed by the Secretary to the President, Dr Callistus Mahama, and addressed to the Minister of Finance, Dr Cassiel Ato Forson, instructed that all existing agreements with SML be terminated without delay.

According to the letter, the decision reflects the government’s renewed commitment to transparency and accountability in public financial management. The contracts had come under intense scrutiny after being linked to alleged corruption and procurement irregularities.

ALSO READ: Your Weekly Pulse: Top 5 News Stories in Ghana You May Have Missed (27 – 31 Oct)

The Finance Minister has been tasked to ensure that the termination process adheres strictly to all legal and financial procedures.

This development follows the announcement by Special Prosecutor Kissi Agyebeng that former Finance Minister Ken Ofori-Atta and six others will face charges for corruption and related offences before the end of November 2025. The individuals named include Ofori-Atta, his former chief of staff Ernest Akore, two former Commissioners-General of the Ghana Revenue Authority (GRA), a former Customs Commissioner now serving as a Member of Parliament, and SML’s General Manager.

ALSO READ: Bursar of NOBISCO arrested over alleged theft of students' food supplies (video)

Addressing the media on Thursday, October 30, the Special Prosecutor described the SML agreement as a “deliberately crafted arrangement” that benefited a few individuals while causing financial losses to the state. The investigation found that SML’s role in GRA’s revenue assurance operations was unnecessary and based on “unverified and misleading claims.”

As part of the findings, SML has been ordered to refund ₵125 million described as unjust enrichment, representing funds improperly received from the state. The GRA reportedly halted payments to the company in December 2024 while investigations were ongoing.

ALSO READ: Speaker Bagbin appointed to IPU Task Force to mediate Russia-Ukraine war

Initially designed to improve revenue collection in the petroleum downstream sector, the SML contract has faced widespread criticism over inflated payments and inefficiency, prompting calls for its cancellation.