GRA credits Publican AI system for exposing GH¢11bn port leakages

The Commissioner-General of the Ghana Revenue Authority, Anthony Sarpong, has revealed that Ghana lost more than GH¢11 billion in revenue due to under-declaration and other irregularities at the country’s ports. The disclosure highlights long-standing challenges in revenue collection and the urgent need for systemic reforms within the import and customs sector.

Speaking on Joy FM’s Super Morning Show on Friday, April 10, Mr Sarpong said the scale of the problem became clear after a detailed review of past data. The findings have sparked renewed discussions about transparency and efficiency in port operations.

Responding to a question on how serious revenue leakages had been prior to the introduction of the Publican AI system, he described the situation as alarming, noting that the issue had persisted for several years without comprehensive detection.

“This is very significant. When we took office, we did a study of past data over about five years, and the results were very revealing,” he said. The review covered multiple import transactions and historical declarations.

According to him, the losses were largely linked to incorrect declarations involving the country of origin, classification of goods and valuation. These practices often allowed importers to pay less than the required duties.

“We identified that over GH¢11 billion in revenue was lost to the state because of issues relating to country of origin, misclassification and valuation,” he stated. This amount represents a substantial loss to public finances and development funding.

Mr Sarpong further disclosed that investigations uncovered collusion among key players within the import chain, pointing to systemic weaknesses.

“We found that there was some collusion among shipping line staff, customs officers and some importers, and this is how the scheme was being run,” he said. Such coordinated efforts made it more difficult for authorities to detect fraud under traditional systems.

He explained that the high level of human involvement and discretion within the system made it difficult to detect and prevent such practices, creating loopholes that were repeatedly exploited.

“We realised that using the same human-centred system and the extensive discretion was not going to help us,” he noted. This realization prompted a shift toward technology-driven solutions.

This, he said, informed the decision to introduce the Publican AI system to reduce human interference and improve accuracy in duty assessment. The system is designed to enhance transparency and efficiency.

“The use of AI automation… looking at country of origin, classification and valuation, will give us the opportunity to see ahead of time. That is how we ended up bringing in the Publican to help solve this challenge,” he explained. The system applies data analytics to flag inconsistencies in real time.

Mr Sarpong also addressed claims that Ghana loses about three million dollars daily at its ports, stating that the figure is now supported by data generated from the new system. This provides a clearer and more reliable picture of revenue leakages.

“This is the revelation after introducing Publican. It is Publican that has given us this insight,” he said. The AI system has significantly improved monitoring capabilities.

He explained that earlier assessments were based on manual checks and could not cover all transactions, whereas the AI system now reviews every declaration submitted. This ensures broader oversight and reduces the chances of missed discrepancies.

Providing further details, he said that in February alone, the system analysed over 6,000 import declarations. This demonstrates the scale at which the technology operates.

“Seventy-five per cent of it, Publican said it was okay… within range. But the 25 per cent it flagged gave us a daily average of 3 million US dollars,” he noted. These flagged cases represent potential underpayments that would have otherwise gone unnoticed.

According to him, this translates into more than one billion Ghana cedis in potential revenue losses each month if left unchecked. The figures underscore the financial impact of under-declaration.

“That under-declaration, if we had not brought in Publican, we would not notice all of it,” he said. The system has therefore become a critical tool in revenue assurance.

He added that the figures could be even higher during busier months, when import volumes increase significantly.

“February is a slow month of importation. In March, we are talking about an average of three to three and a half million dollars a day,” he stated. This suggests that annual losses could be far greater than initial estimates.

Mr Sarpong said the findings have exposed the true scale of under-declaration at the ports and underscored the need for stronger systems. The revelations are expected to influence future policy and enforcement strategies.

He noted that beyond revenue mobilisation, the new system will also promote fairness in the business environment, ensuring a level playing field.

“Those who under-declare are not paying the right taxes, and they have an advantage in pricing over those who comply,” he explained. This creates unfair competition in the market.

He added that correcting this imbalance would benefit legitimate businesses, encouraging compliance and transparency.

“If we are able to bring that 25 per cent to pay correctly, they will be at par with everybody, and market distortions will be fair. So for businesses and traders, we believe that that's one of the advantages Publican is bringing,” he added.