KPMG audit reveals GHS 2.45bn increase in State tax revenue from GRA-SML Contract
KPMG’s recent audit report on the revenue assurance contract between the Ghana Revenue Authority (GRA) and Strategic Mobilisation Limited (SML) has unveiled a notable surge in state tax revenue.
The audit, disclosed in a press statement by the Presidency’s Communications Director, Eugene Arhin, on Wednesday, April 24, revealed that the contract has led to a significant uptick in volumes, registering a rise of 1.7 billion litres and subsequently boosting tax revenue to the State by GHS 2.45 billion.
“There is a clear need for the downstream petroleum audit services provided by SML. GRA and the State have benefited from these services since SML commenced providing them. There has been an increase in volumes of 1.7 billion litres and an increase in tax revenue to the State of GHS 2.45 billion. KPMG also observed that there were qualitative benefits, including a 24/7 electronic real-time monitoring of outflow and partial monitoring of inflows of petroleum products at depots where SML had installed flowmeters and six levels of reconciliation done by SML,” read parts of the statement.
Aside from the uptick in tax revenue, there were other qualitative benefits highlighted in the report such as the deployment of 24/7 electronic real-time monitoring of petroleum product outflows and partial inflow monitoring at depots equipped with SML-installed flowmeters. Moreover, SML’s meticulous six-tier reconciliation process was commended for enhancing the monitoring mechanism and curbing under-declarations.
While the report lauds the evident improvements in revenue generation, it recommends a comprehensive review of the contract for downstream petroleum audit services, with a particular focus on the fee structure to ensure fairness and efficiency.
The President has also highlighted the need for a review of other contract provisions, including clauses pertaining to intellectual property rights, termination, and service delivery expectations.
President Nana Akufo-Addo initiated the KPMG audit on January 2, following an exposé by the Fourth Estate, to investigate the contract between SML and GRA. The audit report was subsequently delivered to the President on Wednesday, March 27, as confirmed by Eugene Arhin in a Facebook post on Wednesday, April 3.
Read details of the statement:
