Abolish SML, Agyapa royalties contracts – CSOs tells Mahama

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The Coalition of Civil Society Organizations (CSOs) focusing on Extractives, Anti-Corruption, and Good Governance has strongly urged President-elect John Dramani Mahama to terminate the Strategic Mobilization Limited (SML) contract.

The CSOs argue that the current SML agreement has resulted in the diversion of millions of Ghana Cedis into private hands without delivering significant benefits to the nation.

They believe that ending the contract would close a major revenue leak and help restore public trust in the country’s financial management.

The coalition includes organizations such as the Africa Centre for Energy Policy (ACEP), Natural Resource Governance Institute (NRGI), Ghana Anti-Corruption Coalition (GACC), iWatch Africa, Revenue Mobilization Africa (RMA), Third World Network-Africa (TWN-Africa), IMANI Centre for Policy and Education, Centre for Extractives and Development (CEDA), Institute of Energy Security (IES), and Human Environment and Livelihoods Platform Foundation (HELP Foundation Africa).

In a letter to the President-elect dated December 11, the CSOs expressed their readiness to support Mahama’s administration in implementing reforms that enhance transparency, accountability, and efficiency. They presented a set of key recommendations for the new administration to prioritize.

“1. Terminate the Strategic Mobilization Limited (SML) Contract, The ongoing SML contract has diverted millions of Ghana Cedis into private hands without delivering commensurate value to the nation. Terminating this agreement will seal a significant revenue leakage and restore public confidence in financial management practices.”

The Civil Society Organizations urged the President-elect to terminate the Agyapa Royalties agreement and reassess the Mineral Income Investment Fund (MIIF) Act.

“Abolish the Agyapa Royalties Deal and Review the Mineral Income Investment Fund (MIIF) Act. We urge your administration to permanently terminate the Agyapa Royalties Deal, which threatens Ghana’s mineral wealth and has faced widespread public rejection.”

They also advocated for reforms in the energy sector, urging the President-elect to reduce political interference in State-Owned Enterprises (SOEs) operating within this domain.

“Limit political interference in State-Owned Enterprises (SOEs) within the energy sector, especially GNPC and Ghana Gas, to promote leadership stability and operational efficiency.

“Address persistent challenges in the energy distribution value chain, which have eroded sector performance and profitability.”