Tuesday, 23 July

GRA directs SML to resume downstream petroleum monitoring

Business
SML

The Ghana Revenue Authority (GRA) has instructed Strategic Mobilisation Limited (SML) to restart its monitoring operations in the Downstream Petroleum sector starting June 14, 2024.

This directive, explained in a GRA statement dated June 12, 2024, to the Bulk Oil Distributors, aligns with President Akufo-Addo’s orders based on the KPMG report.

The GRA's statement noted, "We inform you that Strategic Mobilisation Limited (SML) is directed to resume its monitoring operations in the Downstream Petroleum sector effective June 14, 2024, as per the Presidential Directives on the KPMG report. SML must ensure all systems are fully operational and comply with relevant standards and regulations to provide accurate, reliable, and timely monitoring services to support our revenue assurance. The Bulk Oil Distributors must cooperate to ensure a successful resumption of the monitoring exercise."

Additionally, the Ministry of Energy, in a June 20 statement, announced the development of new measurement standards for the oil and gas sector in collaboration with the Ghana Standards Authority (GSA), the Ministry of Trade and Industry, and other relevant stakeholders. These new standards are based on the Singaporean Standard and utilize the Coriolis mass flow metering system.

The Energy Ministry emphasized, "The GSA, in collaboration with the Ministry of Energy, the Ministry of Trade and Industry, and other stakeholders, has developed new standards for measurements in the oil and gas sector, based on the Singaporean Standard, utilizing the Coriolis mass flow metering system. The Minister for Trade and Industry, under Section 13 of the Ghana Standards Authority Act, 2022, Act 1078, has declared these standards operational and mandatory. All entities undertaking measurements for revenue assurance in the oil and gas sector must adhere to the new standards."

President Akufo-Addo commissioned KPMG on January 2 to audit the contract between the GRA and SML.

The KPMG report revealed that SML received a total of GH¢1,061,054,778.00 from 2018 to the present, with GH¢454,860,396.27 (gross) for transaction audit and external price verification payments and GH¢945,342,007.29 (gross) for downstream petroleum measurement payments.

The report provides an in-depth analysis of the partnership aimed at enhancing revenue collection in Ghana, leveraging advanced technological solutions to streamline tax collection processes, reduce leakages, and increase overall efficiency in the GRA's operations.

Source: Classfmonline.com/Emmanuel Mensah