WHY KEEP IMPEDING DOWNSTREAM PETROLEUM AUDIT BY SML?

 



It appears the sustained efforts to stifle the operations of Strategic Mobilisation Ghana Limited, will not end soon.

It would be recalled that following the recommendations from the KPMG report on the GRA-SML contract, the President directed that SML be made to continue its operations in the downstream petroleum sector, as its much-needed services has led to an incremental revenue in Ghana’s downstream petroleum sector.

In keeping with the President’s directive, Ghana Revenue Authority in a letter, directed SML to resume its downstream revenue monitoring and assurance operations, effective June 14, 2024.

The June 12, 2024, letter from the GRA to the Bulk Oil Distributors partly reads: “We wish to inform you that Strategic Mobilisation Limited (SML) has been directed to resume its monitoring operations of the Downstream Petroleum sector with effect from 14th June 2024 in accordance with the Presidential Directives on the KPMG report.’’

However, just when SML resumed operations, a letter from the Ministry of Energy dated June 20, 2024, has been issued directing the use of new standards for measurements in the oil and gas sector, based on the Singaporean Standard.

‘‘In view of this, the Energy Ministry has entreated persons and entities undertaking measurements for purposes of revenue assurances in the oil and gas sector to do so in accordance with the new standards,’ the letter further stated.

This portal is absolutely surprised that the revenue assurance and audit service provided by SML will be a subject of a fishing expedition by some elements who do not want the contract to see the light of day.  The pattern of fault-finding missions all aimed at obstructing SML cannot be lost on independent minds.

As we take pains to make sense of the directive by the Minister of Energy, these observations and questions still linger on the minds of many:

1.      When was this Singaporean Metering Standards operationalized? Aside from the fact that our independent checks do not provide any details on what the Singaporean Standard was about and when same was to be operationalized, we are equally shocked that the Ministry of Energy’s letter to the Commissioner of Customs did not copy the Standards Authority, the agency that has the sole mandate for calibrating meters in Ghana.

2.     Again, questions are being raised about the focus of the Ministry of Energy in issuing this directive when the Standards Authority is not an agency under the Ministry of Energy. Apart from some legal and locus breaches that the Ministry of Energy’s letter pose, one wonders when the Ministry of Energy became interested in calibration of meters, especially when KPMG’s report had clearly indicated that calibration of metering systems in the FPSOs is not done by the Standards Authority.  Could it be the case that the Ministry of Energy is only interested in metering in downstream petroleum sector?  

3.     Isn’t it also very askance and curious that KPMG’s report, which provided a comprehensive and detailed overview of operations in Ghana’s downstream and upstream petroleum sector, did not make any reference to the Singaporean metering Standard, especially when its mandate bordered largely on how SML’s revenue assurance meters worked?

4.     How come the Standards Authority had not officially notified players in the industry of this Singaporean metering Standard?

 

Conclusions

Interestingly, some leading media outlets have also joined this sustained smear campaign and attempt to put another layer of impediments on the way Strategic Mobilization Ghana Limited as it resumes its revenue assurances operations for the Ghana Revenue Authority. Isn’t it about time that independent minded Ghanaians added their voices to this scurrilous attempt to discredit Ghanaian owned businesses. Truly this sustained level of opposition against efforts by the GRA to deepen its revenue assurances efforts in downstream petroleum sector must be concerning to many well-meaning Ghanaians.



 

 

 

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