President Nana Addo Dankwa Akufo-Addo has asked KPMG, an internationally acclaimed Audit, Tax and Advisory Services firm, to conduct an immediate audit into the transactions between the Ghana Revenue Authority (GRA) and Strategic Mobilisation Ghana Ltd (SML).
The Ministry of Finance/GRA and SML entered into a contract in 2020 to enhance revenue assurance in the downstream petroleum sector, the upstream petroleum production and the minerals and metals resources value chain.
The contract has recently generated a lot of public criticism, particularly on the alleged duplication of work and the claim of saving the country over GHC3 million in revenue, which would have been lost to the state last year (2023).
In a statement issued by the Presidency, the Terms of Reference of the Audit are as follows: conduct an audit to ascertain the rationale or needs assessment performed before the contract approval by GRA and assess how the arrangement aligns with specific needs.
Also, to assess the appropriateness of the contracting methodology, verify compliance with legal standards and industry best practices in the procurement process for the selection of SML and evaluate the degree of alignment between current activities and the stipulated contract scope, identifying any deviations.
KPMG is also to evaluate the value or benefit that SML has so far offered to the GRA through this engagement; 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.
President Akufo-Addo 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 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 statement ended.
Rex Mainoo Yeboah, ISD