Akufo-Addo accepts KPMG's advice to end upstream petroleum and minerals audit service provided to GRA by SML

President Akufo-Addo has accepted auditing company KPMG's recommendation to terminate the upstream petroleum and minerals audit service provided to the Ghana Revenue Authority (GRA) by Strategic Mobilisation Ghana Limited (SML).

In a five-page press release on Wednesday, April 24, the President said, "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 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-for-money assessment, and stakeholder engagements before implementing such services.

Also to be terminated is "The transaction audit and external price verification services may 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 by GRA to ensure that SML performed the services stipulated in the contracts.

This renders the reliance on SML for external price verification redundant," the President said.

President Akufo-Addo stated "There is a clear need for the downstream petroleum audit services provided by SML.

GRA and the State have benefited from these services since SML commenced providing them.

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

Any renegotiated contract should be compliant with section 33 of the PFMA.

"The Ministry of Finance and the Ghana Revenue Authority are to give effect to the above directives of the President immediately and provide the Office of the President with an update on the steps taken."

Background

A report by the 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 vehemently 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.

On March 27, he received from KPMG its report on the audit conducted.