KPMG audit reveals $177.5 million SML investment in GRA contracts

An audit conducted by KPMG into the revenue assurance contract between SML and the Ghana Revenue Authority (GRA) has unveiled significant investment by SML in various service contracts.

The audit found that SML’s investment in contracts for transaction audit, external price verification services, and downstream petroleum audit services totaled $44,044,180. Furthermore, the investment in contracts for upstream petroleum audit and minerals audit services amounts to $133,486,722.

Overall, SML’s total investment in services provided to GRA stands at $177,530,902.

“The total investment value in the contracts for the transaction audit and external price verification services and downstream petroleum audit services amounts to US$44,044,180.00. The total investment value in the contract for the upstream petroleum audit and minerals audit services amounts to US$ 133,486,722.51. The total investment value for all the services provided by SML to GRA amounts to US$ 177,530,902,” the statement said.

However, KPMG highlighted a lack of supporting documentation or relevant information from SML to verify the declared investments.

It stressed that GRA should verify the investments should any of the services under the contracts be terminated.

According to KPMG’s findings, the Government, represented by the Ministry of Finance (MoF) and GRA, has the right to terminate the contract either with or without cause.

Upon termination, the Government may be obligated to compensate SML for services that have been completed but not yet paid for.

Importantly, the Government will not be entitled to a refund of any compensation already disbursed to SML, irrespective of the reason for termination.

Furthermore, in the case of termination without cause, the Government is liable to pay SML a return-on-investment equivalent to the fair value of SML’s investment in the respective contract.