After a comprehensive review of the KPMG audit report, President Akufo-Addo has backed the recommendation to cease upstream petroleum and minerals audit services previously contracted to Strategic Mobilisation Limited (SML) by the Ghana Revenue Authority (GRA).
Notably, these services had not commenced, and no payments had been made to SML.
The President emphasized the necessity of conducting a comprehensive technical needs assessment, value-for-money assessment, and stakeholder engagements before implementing such services, considering their potential to prevent significant revenue losses.
Furthermore, the President recommended terminating transaction audit and external price verification services, as KPMG’s findings indicated only partial value or benefit derived from these services, partly due to GRA’s lack of monitoring to ensure SML’s compliance with contractual obligations.
Regarding downstream petroleum audit services, President Akufo-Addo acknowledged their importance, citing increased tax revenue and volume of petroleum products.
However, he suggested reviewing the fee structure from variable to fixed, along with other contract provisions such as intellectual property rights and termination clauses.
President Akufo-Addo stressed the need for ongoing monitoring and evaluation of SML’s performance under any renegotiated contracts, ensuring compliance with relevant regulations.
The Ministry of Finance and GRA were directed to promptly implement these directives and provide the Office of the President with progress updates.
Background:
An investigative report by Fourth Estate raised concerns about potential irregularities in a multi-million dollar contract granted to SML by the Ghana Revenue Authority (GRA).
Despite the allegations, both GRA and SML vehemently denied any misconduct. SML has initiated legal proceedings against Fourth Estate, citing defamation in response to the accusations.
Following the raised concerns regarding the GRA-SML contract, President Akufo-Addo instructed KPMG to undertake an audit on the issue.
