GRA-SML deal: Akufo-Addo accepts KPMG’s advice to halt upstream audit services

President Nana Addo Dankwa Akufo-Addo has accepted a recommendation by the accounting and auditing firm, KPMG to discontinue the upstream petroleum and minerals audit services previously provided to the Ghana Revenue Authority (GRA) by Strategic Mobilisation Limited (SML).

A statement issued by the Presidency on Wednesday, April 24 on the KPMG report stated that “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 performed the services as stipulated in the contracts.

“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.”

President Akufo-Addo acted on the report presented to him by KPMG on the agreement between the GRA and the SML.

The President made a number of directives upon reviewing the report.

The statement highlighted the directives saying  “The upstream petroleum audit and minerals audit services have not yet been commenced, and no payments have been made in respect of those services; therefore, they may be terminated.

“However, given that the upstream petroleum audit and minerals audit services could prevent significant revenue leakages, the President has directed that the 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 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.

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

However, it is important to review the contract for downstream petroleum audit services, particularly the fee structure.