GRA terminates contract with SML Ghana
In a dramatic turn of events, the Ghana Revenue Authority (GRA) has taken decisive action by terminating its transactional contract with Strategic Mobilisation Ghana Limited (SML), specifically, the termination of the Transaction Audit and External Verification Service Contracts.
This bold move comes on the heels of heightened scrutiny following directives from President Akufo-Addo, prompted by recommendations stemming from an audit conducted by renowned firm KPMG.
In a letter dated Friday, 3rd May 2024, GRA management underscored the necessity of compliance with presidential directives, emphasizing a rigorous review of contractual arrangements between the government, GRA, and SML.
Furthermore, the GRA has opted to suspend segments of the Upstream Petroleum and Minerals Revenue Audit portions, signaling a comprehensive reevaluation of contractual terms and service delivery expectations.
Notably, the decision to revise the fee structure for the Measurement Audit of Downstream Petroleum Products Contract to a fixed fee model underscores a fundamental departure from previous arrangements.
This move by the GRA comes amidst a backdrop of controversy and allegations surrounding the SML-GRA contract. Reports of irregularities and discrepancies have cast a shadow over the efficacy and transparency of the arrangement.
“This is about the presidential directives dated 18 April 2024 on the recommendations of KPMG concerning the Contract for Consolidation of Revenue Assurance Services between the Government of Ghana acting per the Ministry of Finance, Ghana Revenue Authority (GRA) and Strategic Mobilisation Ghana Limited (SML).
“Following the directives of the President, GRA has undertaken a thorough review of the Consolidation of Services (Transaction Audit and External Verification Services) contract dated 3 October 2019, the Measurement Audit for Downstream Petroleum Products Contract dated 3 October 2019, and the Contract for Consolidation of Revenue Assurance Services (Upstream and Minerals Audit) contract dated 25 October 2023.
“Based on the review, the following actions are to be taken: First, The Transaction Audit and External Verification Services Contract will be terminated. Secondly, the Measurement Audit for Downstream Petroleum Products Contract will be amended.
“Specifically, the fee structure will be revised to a fixed fee structure. In addition, other provisions such as service delivery expectations, termination, and intellectual property rights will be subjected to a thorough review.
“Thirdly, the Upstream Petroleum and Minerals Revenue Audit portions of the Contract for Consolidation of Revenue Assurance Services cannot take effect until a comprehensive technical needs assessment, value-for-money assessment, and relevant stakeholder consultations have been achieved,” read the GRA letter signed by its Commissioner General, Ms Julie Essiam.
President Akufo-Addo, in April, instructed the Ghana Revenue Authority (GRA) and the Ministry of Finance to renegotiate the revenue assurance contract with Strategic Mobilisation Limited (SML).
The President emphasized that the renegotiation should be closely monitored and evaluated periodically to ensure it meets expectations.
The decision to renegotiate the contract follows the President’s acceptance of recommendations made by KPMG after its audit of the deal.
The audit findings prompted the need for a review of the revenue assurance contract, highlighting areas where improvements are necessary to enhance its effectiveness.
