GRA-SML deal: Akufo-Addo acts on KPMG report; makes directives

President Nana Addo Dankwa Akufo-Addo has acted on the report presented to him by accounting and auditing firm, KPMG on the agreement between the Ghana Revenue Authority (GRA) and the Strategic Mobilization Limited (SML).

The President has made a number of directives following the reports.

A statement issued by the Presidency on Wednesday, April 24 highlighted the directives saying  “The upstream petroleum audit and minerals audit services have not yet beencommenced, and no payments have been made in respect of those services; therefore,they may be terminated.

However, given that the upstream petroleum audit and mineralsaudit services could prevent significant revenue leakages, the President has directed thatthe Ministry and GRA conduct a comprehensive technical needs assessment, value-formoney assessment, and stakeholder engagements before implementing such services.

“The transaction audit and external price verification services may also be terminated.According to KPMG’s findings, GRA obtained partial value or benefit for those services.This was also due to a lack of monitoring on the part of GRA to ensure that SML performedthe services as stipulated in the contracts.

KPMG’s investigation found that GRA hasintroduced external price verification tools as part of ICUMS, among its other functions.This renders the reliance on SML for external price verification redundant.

“There is a clear need for the downstream petroleum audit services provided by SML.

GRAand the State have benefited from these services since SML commenced providing them.There has been an increase in volumes of 1.7 billion litres and an increase in tax revenueto the State of GHS 2.45 billion.

KPMG also observed that there were qualitative benefits,including a 24/7 electronic real-time monitoring of outflow and partial monitoring ofinflows of petroleum products at depots where SML had installed flowmeters and sixlevels of reconciliation done by SML.

This minimises the occurrence of under-declarations.However, it is important to review the contract for downstream petroleum audit services,particularly the fee structure.

The President has extended his sincere gratitude to KPMG for the thorough nature of the audit conducted.”

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