President Akufo-Addo has ordered an audit into the contract between the Ghana Revenue Authority (GRA) and Strategic Mobilisation Limited (SML).
The audit will be conducted by KPMG and is slated to last for two weeks.
A press statement from the Presidency, issued by Communications Director Eugene Arhin, outlines the President’s specific terms of reference for the KPMG audit.
He has also directed the Ministry of Finance and the Ghana Revenue Authority to suspend the performance of the contract, pending the submission of the audit report, including any payments presently envisaged under its terms.
The contract was entered into to enhance revenue assurance in the downstream petroleum sector, the upstream petroleum production and minerals and metals resources value chain.
In the statement signed by the Director of Communications at the Presidency, Eugene Bentum Arhin, President Akufo-Addo has tasked KPMG to complete the assignment in two weeks, and submit appropriate recommendations to him.
Terms of Reference
It said the KPMG is to conduct an audit to ascertain the rationale or needs assessment performed prior to the contract approval by GRA, and assess how the arrangement aligns with specific needs and assess the appropriateness of the contracting methodology, verifying compliance with legal standards and industry best practices in the procurement process for the selection of SML.
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The statement said it is also to evaluate the degree of alignment between current activities and the stipulated contract scope, identifying any deviations and evaluate the value or benefit that SML has so far offered to the GRA through this engagement.
KPMG is also charged to review the financial arrangements, including pricing structures, payment terms and resolution of any financial compliance issues and submit a report on your findings on the above, together with appropriate recommendations.
The President has directed the Ministry of Finance and GRA to provide KPMG with whatever assistance they will require for conduct of the audit.
Media
Recently, the GRA denied media publication that that it awarded a ‘questionable’ contract to SML.
In a statement, the authority affirmed that, together with the Ministry of Finance, it signed a consolidated contract with SML to monitor and audit Downstream Petroleum Sector in 2019, Upstream Petroleum Production in 2023, and the Minerals and Metals Resources Value Chain in 2023.
It explained that the contract is designed to operate for five years contrary to the ten years published by media organization, The Fourth Estate.
“The new and consolidated contract which is for a term of five years and not ten years as alleged by the publication and was agreed upon based on the performance of SML in monitoring the downstream petroleum sector and the provision of instant reconciliation of real-time data in the sector”, the statement signed by the Communication and Public Affairs Department of the GRA said.
Attached below is a copy of the statement PRESIDENT AKUFO-ADDO DIRECTS AUDIT INTO SML/GRA CONTRACT; SUSPENDS PERFORMANCE OF CONTRACT
The President of the Republic, Nana Addo Dankwa Akufo-Addo, has appointed KPMG, the reputable Audit, Tax and Advisory Services firm, to conduct an immediate audit into the transaction between the Ghana Revenue Authority (GRA) and Strategic Mobilization Ghana Ltd (SML), a contract which was entered into to enhance revenue assurance in the downstream petroleum sector, the upstream petroleum production and minerals and metals resources value chain.
The Terms of Reference of the Audit are as follows:
i. conduct an audit to ascertain the rationale or needs assessment performed prior to the contract approval by GRA, and assess how the arrangement aligns with specific needs;
ii. assess the appropriateness of the contracting methodology, verifying compliance with legal standards and industry best practices in the procurement process for the selection of SML;
iii. evaluate the degree of alignment between current activities and the stipulated contract scope, identifying any deviations;
iv. evaluate the value or benefit that SML has so far offered to the GRA through this engagement;
v. review the financial arrangements, including pricing structures, payment terms and resolution of any financial compliance issues; and
vi. submit a report on your findings on the above, together with appropriate recommendations.
President Akufo-Addo has tasked KPMG to complete the assignment in two weeks, and submit appropriate recommendations to him.
The President has directed the Ministry of Finance and GRA to provide KPMG with whatever assistance they will require for conduct of the audit, and has also directed the Ministry of Finance and the Ghana Revenue Authority to suspend the performance of the contract, pending the submission of the audit report, including any payments presently envisaged under its terms.
Minority Leader’s comment
Meanwhile, the Minority Leader in Parliament, Dr Cassiel Ato Forson has commented on the President’s directive and said it is too late in the day since Parliament was already acting on the issue.
Attached below is Dr Ato Forson’s commented posted on Facebook.
President Akufo-Addo’s appointment of KPMG to audit the so-called revenue assurance agreement between Ghana Revenue Authority (GRA) and Strategic Mobilisation Limited (SML) has come too late in the day.
Parliament has already directed the Finance Committee to audit the infamous agreement, and the Committee is actively seized of the matter.
The President, who should have led this fight in the wake of this scandal, is playing catch-up since Parliament has also directed GRA to suspend all payments to SML.
This whitewashing attempt by the President in the name of an audit will not dissuade Parliament from looking into this matter to stop the siphoning of state resources into the private pockets of government officials and their crony business partners.