Strategic Mobilization Ghana Limited secures order to protect equipment

The High Court in Accra has issued a preservation order to safeguard technical equipment belonging to Strategic Mobilization Ghana Limited (SML) currently installed at 25 fuel depots across the country. Presided over by Justice Doris Awuah Dabanka-Bekoe, the court’s ruling ensures that the status quo is maintained regarding SML’s hardware while a broader legal dispute between the company and the Ghana Revenue Authority (GRA) is resolved. The order effectively prevents the immediate removal of or interference with infrastructure used for auditing and verification in the petroleum sector.

The legal action follows a directive from the GRA instructing SML to remove its audit and verification hardware from various sites. SML contested this move, arguing that its equipment is essential to fulfilling its contractual obligations and protecting its significant financial interests. By securing the preservation order, the company has ensured that its technological assets remain in place at the depots, which are critical nodes in Ghana's fuel distribution network.

Cephas Boyuo, the corporate lawyer for SML, expressed confidence in the company’s legal position following the court's decision. He emphasized that SML has invested more than US$500 million in providing specialized services to the petroleum sector, including sophisticated audit and monitoring systems designed to improve revenue collection and transparency. Boyuo noted that the preservation order is a vital step in protecting these investments as the parties prepare to argue the substantive merits of the case.

This judicial intervention marks a significant phase in the ongoing friction between the private mobilization firm and the national revenue regulator. While the GRA had sought the dismantling of SML’s operations at the depots, the court's decision prioritizes the protection of the physical assets involved until a final determination is made. The outcome of the substantive case is expected to have major implications for how petroleum sector audits are managed and the legal standing of multi-million dollar private-sector contracts with state agencies.