Maximising revenue from the ports; The role of the Special Operation Unit (SOU)
The Special Operation Unit (SOU) of the Office of the President has vowed to intensify its operations this year to recoup all revenues lost to the state due to fraudulent practices at the country’s ports.
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It has, therefore, called on importers and exporters to ensure that they fulfil their tax obligations to avoid being exposed and dealt with.
Sharing the perspectives of the unit in an interview last Saturday, its spokesperson, Dr Clement Apaak, said since it was set up on November 1, 2012 under the chairmanship of the Chief of Staff, Mr Prosper Bani, the unit had successfully recovered more than GH¢1.5 billion as revenue evaded by companies at bonded warehouses.
He said the unit’s operations this year would also tighten the lapses in the revenue collection regimes and the payment of the taxes at the appropriate time by the companies under the bonded warehousing system.
Below is a Q & A on the Special Operations Unit with Dr Apaak.
What is the Special Operations Unit?
Apaak: The Special Operations Unit is one of three revenue task forces at the Presidency. The other two are the Confiscated Vehicles Allocation Committee and the Uncleared Cargo and Auction Management Committee.
Thus, the three task forces work in unison to generate and recover revenue for the state.
Why was the SOU set up and what does it seek to achieve?
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Apaak: On November 1, 2012, His Excellency, President John Mahama set up the Special Operations Unit.
The rationale for setting up the SOU stems from a general concern about the increasing inefficiency at Ghana’s ports, unproductive labour force, theft and insecurity, as well as excessive corrupt practices leading to massive revenue leakages.
Thus, when His Excellency John Mahama set up the SOU, he charged the unit to identify leakages and loopholes in the revenue system and to develop strategies for closing the revenue leakages.
At the operational level, the work of the SOU involves the following;
• Monitor clearing activities on the GCNet and Impromptu systems.
• Post-clearance audit of various transactions on the GCNet/GCMS {warehousing, permits}.
• Conduct Tax Compliance Audits within the business community.
• Detect and investigate cases of revenue fraud across the entire revenue spectrum in a manner that is both aggressive and fair.
• Collate, analyse and disseminate intelligence reports for the prevention of revenue leakages.
• Mount periodic operations on any route for the purposes of intercepting/arresting uncustomed goods and vehicles.
• Monitor and track operations of the suspense regimes, (i.e. transit, warehousing and temporary importation) and ensure that such regimes conform to the relevant laws and procedures.
• Monitor and track imported goods and transactions on the GcNet and GCMS and recommend actions, including re-examination by the SOU.
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• Re-examine and assess all intercepted uncustomed goods and vehicles.
Is the SOU set up by law?
Apaak: Yes, the SOU is set up by law.
Section 58 of the 1992 Constitution of the Republic of Ghana vests executive authority of Ghana in the President. Subsection (2) extends the executive authority to the execution and maintenance of the Constitution and all laws made under or continued in force by the Constitution.
Subsection (3) stipulates that the functions conferred on the President by the executive authority shall, subject to the provision of the Constitution, be exercised by him either directly or through officers subordinate to him.
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What this means is that the President can and is empowered by law to initiate measures to achieve the objects of the Constitution.
Under the Directives Principles of State Policy: “The State shall take steps to eradicate corrupt practices ….” Section 36 (2) also states that the State shall, in particular, take all necessary steps to establish a sound and healthy economy whose underlying principles shall include – ensuring that individuals and the private sector bear their fair share of social and national responsibilities including responsibilities to contribute to the overall development of the country.
Furthermore, section 41 of the Constitution makes reference to the duties of citizens. Subsection (f) for example, places a duty on citizens to protect and preserve public property and expose and combat misuse and waste of public funds and property. Subsection (j) enjoins citizens to declare his income honestly to the appropriate and lawful agencies and to satisfy all tax obligations.
How is the SOU regulated?
Apaak: The SOU is regulated by a set of guidelines approved by the Chief of Staff at the Presidency. The guidelines contain professional standards and code of conduct for individuals working within the SOU. Indeed, the guidelines are aimed at improving the operational efficiency of the unit, enhancing the overall performance of the SOU, injecting a new sense of direction in the unit, and re-vitalising its operations.
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The SOU also has a planned, co-ordinated action plan with tangible targets, outputs outcomes. Specialist teams work in accordance with targets that are specific, measurable and achievable.
Regular reports on the activities of the SOU are sent to the Chief of Staff for information and/or directives.
The Operations & Logistics Officer at the Presidency provides logistical and operational support to the work of all three task forces.
What is the structure of the SOU?
Apaak: The overall head of the Special Operations Unit is the Chief of Staff at the Presidency.
The SOU has a Steering Committee that meets approximately every two weeks to discuss the work of the unit.
On a daily basis, the SOU is managed by the chairman of the unit.
The Operations & Logistics Officer at the Presidency provides logistical and operational support to the work of the Special Operations Unit and the other task forces at the Presidency.
How are members of the SOU recruited?
Apaak: Membership of the SOU is based on selection. A basic criterion for selecting candidates is the competence, honesty and integrity of the person.
Talented individuals are selected based on their requisite expertise and knowledge in specific functional areas, as well as their commitment to the objectives of the SOU.
Because the SOU is a task force, individuals are also selected from a variety of backgrounds, including the security services, customs division of the Ghana Revenue Authority, civilians, etc.
Membership of the SOU changes from time to time, as some personnel are replaced to inject dynamism in the operations of the unit.
Are members of the SOU paid?
Apaak: Members of the SOU are not paid; they are given allowances, commensurate to their competences, skills, abilities, duties, etc.
Does the SOU operate from the ports?
Apaak: The SOU is not stationed, nor has it got an office, at any of the ports. Thus, it is not true that the SOU operates from the ports. However, if the SOU has reason to believe that there is a revenue leakage, through under-valuation or wrong classification, it sends a team to the port to conduct joint examination with Custom Officers from the GRA to prevent that leakage from occurring.
There have been stories in the media about members of this or that task force extorting monies from people at the ports. Whilst the SOU denies the complicity of any of its members, we encourage members of the public who become aware of any offence to report such incidents to the police or any of the law enforcement agencies.
On what grounds does the SOU compel companies and individuals to pay back taxes they have evaded?
Apaak: The laws of Ghana place an obligation on individuals and corporate entities to pay their duties and taxes without fail. Thus, individuals and/or corporate bodies found, through investigation, to have evaded and/or under paid taxes and duties are brought to book by the appropriate authorities.
This may take the form of a prosecution and/or the imposition of appropriate penalties through a demand notice.
Does the SOU report defaulting companies/individuals to law enforcement agencies?
Apaak: The SOU works in collaboration with law enforcement agencies. If the offence in question involves recovery of under-paid duties and payment of penalties, then the appropriate agency will be the Customs division of the Ghana Revenue Authority.
On another hand, if a criminal offence has been committed, then organisations such as the Criminal Investigations Department of the Police or the Bureau of National Investigations may take up the matter for prosecution.
Does the SOU prosecute companies and individuals?
Apaak: The SOU does not prosecute defaulting individuals and companies directly. In fact, the decision whether or not to prosecute a defaulting individual or company is the prerogative of the Attorney General.
However, as an investigative body, the SOU liaises with appropriate law enforcement agencies to ensure that defaulting individuals and companies are prosecuted where criminal offences have been committed.
Are defaulting companies and individuals left to go scot free after paying taxes and duties they have evaded?
Apaak: The fact that revenue is recovered from a defaulting individual or company does not mean the defaulter is allowed to go scot free.
The decision to prosecute is always the discretion of the Attorney General. So, it is possible that Customs division of the GRA may recover lost revenue, and then the Attorney General may also go ahead and prosecute an offender.
Where does money collected by the SOU go?
Apaak: The SOU does not collect monies directly. Individuals and/or companies found to have under paid and/or or not paid duties and taxes are issued with a demand notice to pay the relevant amounts into a portal of the Ghana Customs Management System.
So, whatever money is collected on behalf of the state is administered by the Ghana Revenue Authority.
What process does the unit go through to indict individuals and companies as defaulters?
Apaak: The SOU relies essentially on intelligence-led information to carry out its duties. First, all complaints or intelligence-led information are investigated thoroughly to ascertain the truth or otherwise of the complaint.
If an investigation proves positive, it is then established whether or not an offence has been committed. A dossier is then opened and the necessary evidence put together to build a case. Finally, the docket is then handed over to the Criminal Investigation Department or Bureau of National Investigation for prosecution.
Does the SOU collect taxes from individuals, traders and corporate bodies?
Apaak: The SOU does not collect taxes from anybody. Generally, the collection of taxes is the duty of the Ghana Revenue Authority which has district offices and officers to undertake this job.