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CSOs Call on Mahama to Terminate Controversial SML Contract and Implement Key Reforms

The Coalition of Civil Society Organizations (CSOs) working in the fields of extractives, anti-corruption, and good governance has called on President-elect John Dramani Mahama to take decisive action to address key governance challenges. At the forefront of their concerns is the immediate termination of the Strategic Mobilization Limited (SML) contract, which they argue has caused significant revenue losses for the nation.

The coalition emphasizes that this step is necessary to plug a critical revenue leak and restore public trust in Ghana’s financial management.

In a detailed letter issued to the President-elect on December 11, the CSOs outlined their concerns and recommendations for urgent reforms in various sectors. They reiterated their readiness to support the incoming administration in implementing policies that promote transparency, accountability, and efficiency. The coalition includes prominent 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 the Human Environment and Livelihoods Platform Foundation (HELP Foundation Africa).

The CSOs’ primary focus is the termination of the SML contract, which they argue has diverted millions of Ghana cedis into private hands without delivering proportional value to the nation. “The ongoing SML contract has created significant revenue leakages,” the letter stated. “Ending this agreement will not only save the nation from financial losses but will also restore public confidence in the management of state resources.”

Beyond the SML contract, the coalition is urging the incoming administration to permanently terminate the controversial Agyapa Royalties deal. This agreement, which has been a topic of intense public debate, is seen by many as a threat to Ghana’s mineral wealth. The CSOs argue that the deal lacks transparency and has faced widespread public rejection due to its potential to undermine the country’s long-term economic interests. “We urge your administration to abolish the Agyapa Royalties Deal and review the Mineral Income Investment Fund (MIIF) Act to ensure that Ghana’s resources are managed in a manner that benefits all citizens,” the letter emphasized.

Reforms in the energy sector also feature prominently in the coalition’s recommendations. The CSOs called for a reduction in political interference in State-Owned Enterprises (SOEs), particularly the Ghana National Petroleum Corporation (GNPC) and Ghana Gas. Such interference, they argue, undermines leadership stability and operational efficiency, ultimately harming the sector’s performance and profitability. “Political interference in SOEs within the energy sector must be minimized to promote stability, efficiency, and growth,” the letter noted.

The coalition also highlighted persistent challenges within the energy distribution value chain. These issues, they contend, have eroded the sector’s performance and profitability, making it imperative for the new administration to address them as a matter of priority. By tackling inefficiencies and enhancing operational transparency, the government can create a more sustainable and profitable energy sector that supports the nation’s economic growth.

The CSOs expressed optimism about the incoming administration’s ability to implement these critical reforms. They noted that President-elect Mahama has a unique opportunity to address the governance challenges that have plagued the country in recent years. “Your administration has the mandate and responsibility to restore public trust by taking bold and decisive action on these issues,” the coalition stated.

The termination of the SML contract and the Agyapa Royalties deal, they argued, would send a strong signal of the government’s commitment to transparency and accountability. These actions would also pave the way for broader reforms aimed at improving financial and resource management across various sectors.

The coalition’s call for reforms is not limited to financial management and resource governance. They also emphasized the importance of promoting good governance practices across all sectors of the economy. By implementing policies that enhance transparency and accountability, the incoming administration can lay the groundwork for sustainable development and economic growth.

As Ghana transitions to a new administration, the CSOs’ recommendations serve as a roadmap for addressing some of the most pressing challenges facing the country. From plugging revenue leakages to reforming the energy sector, the proposals outlined by the coalition highlight the need for a bold and reform-oriented approach to governance.

The incoming administration’s ability to implement these reforms will be closely watched by Ghanaians and the international community. By prioritizing transparency, accountability, and efficiency, the government can set a new standard for governance in Ghana and build a legacy of trust and progress.

In conclusion, the coalition’s letter underscores the urgent need for action on several fronts. From terminating controversial agreements like the SML and Agyapa Royalties deals to addressing inefficiencies within the energy sector, the recommendations provide a clear path forward for the new administration. By taking these steps, the government can restore public confidence, enhance resource management, and build a brighter future for all Ghanaians.

Read the full press release below:

Letter-to-President-Elect-Mahama

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