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| (Manasseh Azure Awuni) |
Manasseh Azure Awuni, the Founding Editor-In-Chief of the Fourth Estate, has raised doubts about the value contribution of Strategic Mobilization Ghana Limited (SML) in the upstream petroleum and gold production sectors. During a discussion on Joy FM’s Top Story, he emphasized the lack of transparent value additions from SML to these sectors and urged for accountability in the allocation of associated funds.
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He dismissed the Ghana Revenue Authority’s (GRA) statement highlighting that the consolidated contract grants SML over $100 million annually based on the condition that "if there is no value addition, SML is not paid." Contrary to this claim, Mr. Azure pointed out that the contract, as extended by the Finance Ministry, does not tie SML's payment to value addition.
Instead, he clarified that SML is slated to receive compensation regardless of the value it adds to the petroleum upstream and gold sectors. He revealed that the contract specifies a payment of $0.75 per barrel of the 160,000 barrels of oil produced daily in Ghana, guaranteeing SML income as long as production continues. Similarly, he noted that SML stands to gain from the monitoring of gold production, earning 0.75% of the monitored gold output, regardless of any actual value addition.
In essence, Mr. Azure highlighted that SML's remuneration is not linked to its ability to enhance production processes or provide substantial value to these sectors. Instead, the company stands to profit as long as production persists, irrespective of its direct contributions or enhancements.
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Mr. Azure highlighted the potential financial gains for SML, illustrating that the company's earnings are contingent upon production levels and not its impact on value addition or operational improvement. He emphasized that SML's revenue stream is tied directly to the continuity of production, highlighting the financial incentives for the company to monitor and oversee production activities.
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