In response to an audit conducted by KPMG regarding the transactions between the Ghana Revenue Authority (GRA) and Strategic Mobilization Ghana Ltd (SML), President Akufo-Addo has directed that the upstream petroleum audit and minerals audit services by the latter may be terminated.
A press release issued by the Communications Directorate of the Jubilee House said the President acted based on the findings and recommendations of KPMG and has, by letter dated Thursday, April 18, 2024, given directives to the Ministry of Finance and the Ghana Revenue Authority.
The President also directed that the transaction audit and external price verification services may also be terminated because the GRA obtained only partial value or benefit from these services, partly due to a lack of monitoring.
"KPMG’s investigation found that GRA has introduced external price verification tools as part of ICUMS, among its other functions. This renders the reliance on SML for external price verification redundant," the statement said.
The President further noted that although there is a clear need for the downstream petroleum audit services provided by SML, the fee structure needs review, directing a shift from a variable to a fixed fee structure and a review of other contract provisions.
Finally, the President directed that any renegotiated contracts with SML must undergo periodic monitoring and evaluation to ensure compliance and performance.
The Ministry of Finance and the Ghana Revenue Authority are tasked with immediately implementing these directives and providing the Office of the President with updates on the progress made.
President Akufo-Addo expresses his gratitude to KPMG for their thorough audit, reaffirming his commitment to transparency and efficiency in government operations.
Background
An investigative report by Fourth Estate, alleged irregularities in a multi-million dollar contract awarded to SML by the Ghana Revenue Authority (GRA).
Despite the allegations, both the GRA and SML strongly denied any wrongdoing.
In response to the accusations, SML has taken legal action against the Fourth Estate alleging defamation.
Following concerns raised regarding the contract between the GRA and SML, President Akufo-Addo directed KPMG to conduct an audit into the matter.
