SML welcomes KPMG audit directive by President Akufo-Addo; says audit will confirm integrity of contract with GRA
Strategic Mobilisation Ghana Ltd. (SML) says it has taken notice and welcomed the directive by President Nana Akufo-Addo to suspend the company’s revenue assurance contract with the Ghana Revenue Authority (GRA) and the Ministry of Finance.
In a statement issued by SML on January 4, 2024, SML noted it awaits the results of the audit, as it will help establish a clear and accurate picture of its operations.
“We hope that the report’s findings will be made public, allowing for transparency and accountability. We remain resolute in upholding the highest business standards and welcome the scrutiny that this audit would bring. We are confident that the findings will confirm the integrity of our collaboration with GRA and the Ministry of Finance and provide ample evidence of the value we provide citizens,” it noted in the statement.
In December 2023, The Fourth Estate published a report suggesting underhand dealings in the GRA’s award of a $100-million 10-year contract to SML.
SML however denied the claims, clarifying that the contract was for five years. The company also denied the $100 million annual payment claim.
Subsequently, the GRA issued a statement affirming that its board and management had followed the correct processes in procuring the services of SML.
Following the allegations, President Nana Akufo-Addo ordered an audit into the contract and suspended its performance.
A statement issued on Tuesday, 2 January 2024, by the Director of Communications at the Jubilee House, Mr Eugene Arhin, said: “The president has appointed KPMG, the reputable audit, tax and advisory services firm, to conduct an immediate audit into the transaction between the GRA and Strategic Mobilisation Ghana Limited (SML), a 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”.
The terms of the reference of the audit are as follows:
1. Conduct an audit to ascertain the rational or needs assessment performed prior to the contract approval by GRA and assess how the arrangement aligns with specific needs;
2. 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;
3. Evaluate the degree of alignment between current activities and the stipulated contract scope identifying any deviations;
4. Evaluate the value or benefit that SML has so far offered to GRA through this engagement;
5. Review the financial agreement, including pricing structures, payment terms, and resolution of any financial compliance issues;
6. And submit a report on your findings on the above, together with appropriate recommendations.
The president wants the work done in two weeks.
