President Nana Addo Dankwa Akufo-Addo has directed an audit into SML/GRA contract and has asked for a suspension of the performance of contract.
The Director of Communications at the Presidency, Eugene Arhin made this known in a press statement dated January 2, 2024.
The statement was released Tuesday night.
President Akufo-Addo has subsequently appointed KPMG to conduct an immediate audit into the transaction between the Ghana Revenue Authority (GRA) and Strategic Mobilization Ghana Ltd (SML).
He 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.
The contract was entered into to enhance revenue assurance in the downstream petroleum sector, the upstream petroleum production and minerals and metals resources value chain.
In the statement signed by the Director of Communications at the Presidency, Eugene Bentum Arhin, President Akufo-Addo has tasked KPMG to complete the assignment in two weeks, and submit appropriate recommendations to him.
Terms of Reference
It said the KPMG is 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 and 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.
The statement said it is also to evaluate the degree of alignment between current activities and the stipulated contract scope, identifying any deviations and evaluate the value or benefit that SML has so far offered to the GRA through this engagement.
KPMG is also charged to review the financial arrangements, including pricing structures, payment terms and resolution of any financial compliance issues and submit a report on your findings on the above, together with appropriate recommendations.
The President has directed the Ministry of Finance and GRA to provide KPMG with whatever assistance they will require for conduct of the audit.
Media
Recently, the GRA denied media publication that that it awarded a ‘questionable’ contract to SML.
In a statement, the authority affirmed that, together with the Ministry of Finance, it signed a consolidated contract with SML to monitor and audit Downstream Petroleum Sector in 2019, Upstream Petroleum Production in 2023, and the Minerals and Metals Resources Value Chain in 2023.
It explained that the contract is designed to operate for five years contrary to the ten years published by media organization, The Fourth Estate.
“The new and consolidated contract which is for a term of five years and not ten years as alleged by the publication and was agreed upon based on the performance of SML in monitoring the downstream petroleum sector and the provision of instant reconciliation of real-time data in the sector”, the statement signed by the Communication and Public Affairs Department of the GRA said.
Content by: Donald Ato Dapatem
