Ben Boakye describes audit of GRA/SML contract by KPMG as “unethical”
Director of the African Centre of Energy Policy (ACEP), Ben Boakye, has described as unethical the probe of the billions of cedis contract between the Ghana Revenue Authority (GRA) and Strategic Mobilization Ghana Limited (SML).
Making the assertion in a tweet on Tuesday, January 2, 2024, Mr Boakye noted that this is so because the GRA is a client of KPMG.
“KPMG has its integrity at stake if it accepts this job. It is a client of GRA and its investigation against the leaders of one of its LARGE portfolios is exceedingly suspicious. Simply unethical,” he tweeted.
Honorary Vice President of IMANI Ghana, Bright Simons, also noted in a tweet that the President’s directive to have the contract investigated by KPMG is “rushed” asserting key civil society activists probing the SML contract reject the President’s decision.
“For the record, the key civil society activists probing this SML contract reject the President’s decision to ask KPMG to do a RUSHED review of Ghana’s decision to hire a timber merchant at a fee that could top a $billion over time in the name of auditing commodity exports,” Mr Simons tweeted.
President Akufo-Addo has ordered an audit into the contract between the Ghana Revenue Authority (GRA) and Strategic Mobilisation Limited (SML).
The audit will be conducted by KPMG and is slated to last for two weeks.
A press statement from the Presidency, issued by Communications Director Eugene Arhin, outlines the President’s specific terms of reference for the KPMG audit.
The directive reflects a commitment to ensuring transparency and accountability in the execution of the GRA’s contractual agreement with SML.
“The President of the Republic, Nana Addo Dankwa Akufo-Addo, has appointed KPMG, the reputable Audit, Tax and Advisory Services firm, to conduct an immediate audit into the transaction between the Ghana Revenue Authority (GRA) and Strategic Mobilization Ghana Ltd (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,” an excerpt of the release said.
President Akufo-Addo further instructed the Ghana Revenue Authority (GRA) and the Ministry of Finance to adhere to his directive and furnish KPMG with all necessary documentation for the upcoming audit.
“The President has directed the Ministry of Finance and GRA to provide KPMG with whatever assistance they will require for 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,” the release concluded.
Why is it unethical? KPMG is a professional independent company and can audit any governmental agency, ministry department or body. It will be unethical only when the independence clause is violated. KPMG or any Accounting firm is free to audit unless they are doing business with the government other than audit. They can’t compile information and do the review or Audit at same time They can only provide one of three services that have been mentioned,, Compilation, Review and Audit at any given time. The best approach iis what Nana Addo Danquah has taken.
am shocked to learn that KPMG and GRA are already in bed. Are to accept that the president did not know of the fact that KPMG already audits GRA? AABA president Akufu-Addo!! what is this? KPMG! what are you up to? your international reputation for now and the future is at stake.