President Akufo-Addo has directed the Ministry of Finance and the Ghana Revenue Authority (GRA) to conduct a “comprehensive technical needs assessment, value-for-money assessment, and stakeholder engagements” on the upstream petroleum and minerals audit service with Strategic Mobilisation Ghana Limited (SML) before implementing it.
The assessment, according to the President, will determine whether the contract should be terminated or otherwise, based on its profitability to the state, a Wednesday, April 24, 2024 statement from the presidency on the KPMG report contained.
According to the statement, the KPMG recommended that “the Government, acting through MoF and GRA, may terminate the contract with or without cause upon giving 120 days written notice before the effective date of termination stated in the Termination Notice. Upon termination, the Government may be liable to pay SML for services already completed but not yet paid, and the Government will not be entitled to a refund of any compensation already paid to SML, regardless of the termination cause.”
In his response the President said “the upstream petroleum audit and minerals audit services have not yet been commenced, and no payments have been made in respect of those services; therefore, they may be terminated. However, given that the upstream petroleum audit and minerals audit services could prevent significant revenue leakages, the President has directed that the Ministry and GRA conduct a comprehensive technical needs assessment, value-for-money assessment, and stakeholder engagements before implementing such services.”
A report by the Fourth Estate, alleged irregularities in a multi-million dollar contract awarded to SML by the Ghana Revenue Authority (GRA). Despite the allegations, both the GRA and SML vehemently denied any wrongdoing.
In response to the accusations, SML has taken legal action against the Fourth Estate alleging defamation. The concerns raised regarding the contract between the GRA and SML prompted President Akufo-Addo to direct KPMG to conduct an audit into the matter.
On March 27, he received from KPMG its report on the audit conducted. Calls came for the President to make the findings of the audit public for Ghanaians to know if they taxes were being used for a good cause.
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The President, following the calls, has issued a statement highlighting the findings and recommendations of the report, and attached with it his directives to the Finance Ministry and the GRA regarding the contract.
Find the full statement from the President here.
