President Akufo-Addo suspends SML/GRA contract; orders investigations
On January 2, 2024, 9:35 PM
President Akufo-Addo has ordered the suspension of the contract between Ghana Revenue Authority (GRA) and Strategic Mobilization Ghana Ltd (SML).
The contract which was entered into to enhance revenue assurance in the downstream petroleum sector, the upstream petroleum production and minerals and metals resources value chain has become a matter of controversy following concerns raised.
This is what has prompted the President to appoint a reputable Audit, Tax, and Advisory Services firm, KPMG, to conduct an immediate audit of the transaction.
This was contained in a statement issued by the Director of Communications at the presidency (Jubilee House), Eugene Arhin this evening.
KPMG has been tasked to conduct an audit to ascertain the rationale or needs assessment performed prior to the contract approval by GRA and assess how the arrangement aligns with specific needs.
It is also to assess the appropriateness of the contracting methodology, verifying compliance with legal standards and industry best practices in the procurement process for the selection of SML.
They are also expected to evaluate the degree of alignment between current activities and the stipulated contract scope, identifying any deviations.
KPMG has also been tasked to evaluate the value or benefit that SML has so far offered to the GRA through this engagement and review the financial arrangements, including pricing structures, payment terms , and resolution of any financial compliance issues.
They are to submit a report on their findings on the above, together with appropriate recommendations.
President Akufo-Addo has tasked KPMG to complete the assignment in two weeks and submit appropriate recommendations to him.
He has, therefore, directed the Ministry of Finance and GRA to provide KPMG with whatever assistance they will require for the conduct of the audit and has 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.
