GRA terminates 2 SML contracts

GRA terminates 2 SML contracts

GRA
Ghana Revenue Authority

The Ghana Revenue Authority (GRA) has terminated two of its contracts with Strategic Mobilisation Ghana Limited (SML).

These are the transaction Audit and External Verification Service Contract (AEVS).

This follows President Nana Addo Dankwa Akufo-Addo’s directive after audit firm, KPMG submitted its report on the deal.

In addition, GRA has directed that the Upstream Petroleum and Minerals Revenue Audit portions of the contract be suspended pending further review of the contract details.

The Authority is also set to amend the measurement Audit for the Downstream Petroleum Products Contract by revising the fee structure to a fixed fee structure.

There will also be a review of other provisions such as service delivery expectations, termination, and intellectual property rights.

Asaaseradio.com reports that, this was contained in a letter titled “Compliance with Presidential Directives on Recommendations in KPMG Report on the Transactions Between GRA and SML,” dated Friday, 3 May 2024.

“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,” the letter read in parts.

The letter had the Vice President, Dr Mahamudu Bawumia, the Chief of Staff, Mars Akosua Frema Osei Opare, Secretary to the President, Nana Bediatuo Asante, the Finance Minister, Mohammed Amin, the Director of Legal at the Ministry of Finance and the Deputy Commissioner in charge of Legal Affairs at the GRA copied.

On January 2, 2024, President Nana Akufo-Addo directed KPMG to investigate the contract between SML and GRA, following an exposé by the Fourth Estate.

The audit findings prompted the need for a review of the revenue assurance contract, highlighting areas where improvements are necessary to enhance its effectiveness.

The report also revealed that, no technical needs assessment was done prior to the engagement of SML, however, such an assessment was not legally required for engaging SML.

Regarding the transaction audit services, KPMG concluded that SML partially delivered on the service requirements.

It added that “the total fees estimated to be paid to SML under the 2023 Contract for five years is GH¢5,173,091,857.00, which averages to about GH¢1 billion per year.”

Meanwhile, there have been calls on the government to release the full report.

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