Strong Institutions, not Strong Men: UPSA forum urges tech-driven reforms to curb tax revenue leakages

Dr. Eric Boachie Yiadom is a Senior Lecturer at the University of Professional Studies, Accra (UPSA). He also serves as Projects Coordinator. He recently spoke about improving tax revenue in Ghana.

At a forum titled "Tackling Tax Revenue Leakages in Ghana," Dr. Yiadom shared findings from his study. This study focused on using technology for revenue assurance. He highlighted Strategic Mobilisation Ghana Ltd (SML) as a case study.

Dr. Yiadom emphasized the importance of strong institutions over trust. “We cannot build a nation based on trust,” he stated. A robust system ensures compliance, regardless of individual trustworthiness.

He referenced former US President Barack Obama’s 2009 speech to Ghana's Parliament. Obama said, “Africa doesn't need strong men. It needs strong institutions.”

Dr. Yiadom noted that public discussions have highlighted gaps in SML’s contracts and claims. However, he believes more empirical research is necessary.

“In academic research, we must interrogate primary data ourselves,” he said.

After engaging with SML, Dr. Yiadom accessed their facilities for firsthand verification. He examined their technology systems like ultrasonic flow meters and AI-powered surveillance tools.

Technology vs. Revenue Leakages

Dr. Yiadom cited data showing discrepancies in petroleum lifting volumes in Ghana. These discrepancies reached 3.2 billion litres annually before SML's involvement in mid-2020. Afterward, this figure dropped by over 91% to 260 million litres per year.

“Let’s assume SML wasn’t solely responsible for this improvement,” he suggested. “Still, the timing aligns with their monitoring technology introduction.”

He acknowledged concerns from the KPMG report about SML’s fee structure and procurement processes. However, he advocated for risk-reward contracts tied to performance within Ghana’s Public Procurement framework.

“There is no law against risk-reward models in our procurement act,” he stated. “This calls for modernization of our laws to accommodate new technologies.”

Redundancy or Reinforcement?

Dr. Yiadom admitted that SML's work seemed redundant alongside existing systems like NPA’s ERDMS and GRA’s ICUMS. However, he compared it to internal audits that help detect inefficiencies.

“Multiple layers are safeguards, not flaws,” he explained.

He questioned resistance to technological reinforcement when similar systems improved customs operations at ports.

A Call for Transparency and Independent Research

In conclusion, Dr. Yiadom urged academics and professionals to engage directly with institutions like SML instead of relying on third-party reports.

“If you want to know what’s truly happening, visit them and ask questions,” he advised.

The forum attracted students, academics, policymakers, and industry stakeholders. It reflects UPSA's commitment to addressing public finance management challenges in Ghana through research-led insights.