SML challenges KPMG’s GHS 1bn compensation payment in GRA contract audit
Strategic Mobilisation Ghana Ltd (SML) has strongly contested the compensation figures attributed to it in a recent KPMG audit report concerning its contract with the Ghana Revenue Authority (GRA).
In response to the audit findings, SML argued that KPMG’s reported compensation of GH¢1,061,054,778 failed to account for the company’s investments and tax contributions during the contract period.
“KPMG quotes a figure as compensation to SML. It is interesting to note that this figure is quoted without reference to the investments made and the taxes paid by SML over the period within the consolidated contract. The compensation of GH¢1,061,054,778.00 stated by KPMG is inaccurate,” SML asserted in a press statement issued on Thursday, April 25, 2024.
Furthermore, SML highlighted a significant omission in KPMG’s report which is the non-inclusion of a 31.5% GRA tax deduction from the total compensation. This, SML claims, skews the perceived financial dynamics of the contract.
“SML finds that KPMG’s failure to state GRA taxes of 31.5% taken before payment, interest payments of 32% plus the investment repayment made by SML, and other taxes/duties over the period creates a very unbalanced impression of the relationship between the compensation and the investment and other related costs. This omission is highly misleading,” the company said.
Additionally, SML moved to clarify claims made by The Fourth Estate, which alleged that the company had a 10-year contract with the GRA and received annual payments of $100 million. SML pointed to the KPMG report as vindication against these allegations, stating that the audit assurance confirmed that no such $100 million payment was received from the government.
SML reaffirmed its dedication to upholding ethical standards and maintaining the quality of its work, underlining its commitment to contributing positively to Ghana’s development.
