President Nana Addo Dankwa Akufo-Addo has taken action on the report presented by accounting and auditing firm, KPMG, regarding the agreement between the Ghana Revenue Authority (GRA) and Strategic Mobilization Limited (SML).
The report highlighted that no technical needs assessment was conducted prior to engaging SML, although it was not legally required. The engagement of SML raised concerns about underreporting, under-declaration, and potential revenue leakages.
Despite seeking approval three times from the Public Procurement Authority (PPA), GRA engaged SML without approval and eventually extended their services to cover upstream petroleum and minerals audits.
President Akufo-Addo has directed the Ministry and GRA to conduct a comprehensive technical needs assessment before implementing the upstream petroleum and minerals audit services.
He also recommended terminating the transaction audit and external price verification services due to partial value delivery and redundancy in the ICUMS system.
The downstream petroleum audit services provided by SML have proven beneficial, with an increase in tax revenue and improved monitoring processes.
However, the President has directed a review of the fee structure and key provisions in the contract to ensure compliance with the Public Financial Management Act.
The Ministry of Finance and GRA are tasked with implementing these directives immediately and providing updates to the Office of the President.
President Akufo-Addo expressed gratitude to KPMG for their thorough audit and emphasized the need for continuous monitoring and evaluation of SML’s performance in any renegotiated contracts to ensure compliance and value delivery.
